Table of Contents
Frequently Asked Questions
What do GCC consumers care about in sustainable products?
GCC consumers increasingly care about practical impact: less single-use plastic, durable products, recyclable packaging, ethical sourcing, and brands that make sustainability easy to understand and act on daily with confidence.
Which sectors are most affected by sustainability demand in the GCC?
Sustainability demand affects almost every sector, but the strongest shifts are visible in fashion, food and beverage, hospitality, banking, tourism, transport, packaging and consumer-facing retail services across the GCC market.
Are GCC companies keeping up with consumer sustainability expectations?
Many companies are still catching up. Consumers often focus on reuse, recycling, durability and packaging, while businesses measure production, materials and supply chains, creating a communication and strategy gap.
How do GCC regulations influence sustainable consumer behaviour?
Government policies influence behaviour by making sustainable choices more visible, practical and expected. UAE and Saudi sustainability agendas are pushing companies to adapt products, packaging, energy use and operations.
How can Meydan Free Zone support a sustainable business setup in the UAE?
Meydan Free Zone offers a fully digital business setup route with the Fawri license issued in under 60 minutes, 2,500+ business activities including Environmental Consulting (7490.10) and Environment Protection Equipment Trading (4773.a2), plus mResidency for investor visa support and Meydan Plus for ongoing compliance
Topic Summary
1. Rising Environmental Consciousness Influences Purchasing Decisions
Consumers in the GCC region are increasingly prioritising environmental impact when making purchases. This shift is driven by heightened awareness of climate change, resource depletion, and pollution, compelling companies to integrate sustainable practices across their product and service offerings.
2. Ethical and Social Responsibility Expectations Are Heightening
Modern consumers are not only seeking eco-friendly products but also demand transparency regarding ethical sourcing, fair labour practices, and corporate social responsibility. GCC companies must therefore ensure their supply chains and operations meet these rigorous social standards to maintain consumer trust.
3. Health and Wellness Trends Boost Demand for Sustainable Options
The pursuit of healthier lifestyles complements the interest in sustainability, as consumers associate organic, chemical-free, and ethically produced goods with better well-being. Companies in sectors such as food and beverages, personal care, and healthcare must innovate to meet these interconnected demands.
4. Sector-Transcending Demand Requires Cross-Industry Innovation
The increased preference for sustainable choices spans diverse industries from automotive, with a surge in electric and hybrid vehicles, to tourism, where eco-friendly travel experiences are gaining traction. GCC firms should explore cross-sector opportunities that promote sustainability while enhancing competitive advantage.
5. Regulatory and Market Forces Are Aligning With Consumer Expectations
Governments across the GCC are adopting regulations and incentives that encourage sustainable business models, reflecting and reinforcing consumer preferences. Companies that proactively align with these evolving regulatory frameworks and consumer values stand to benefit from enhanced brand reputation and market positioning.
Consumer demand for sustainable products and services what GCC companies need to know
The move to sustainable products and services is a global trend, accelerating at different speeds across different regions. Driven by increasing awareness of environmental issues, ethical concerns, and a desire for healthier lifestyles, consumers are demanding more eco-friendly and socially responsible options.
The outcome is an increased demand that transcends sectors, from electric cars and eco-friendly tourism to new approaches to ethical fashion and the transformation of the food and beverage sector.
This shift is already showing up in the numbers: Visa's 2023 Sustainable Commerce Study found that an average of 72% of consumers across the UAE, Saudi Arabia, Kuwait, and Qatar are actively reducing their use of single-use plastics, a clear signal that sustainability behaviour has moved from talking point to daily habit in the GCC.¹
This shift is fuelling demand for recovered material, which is why launching waste plastic trading in Dubai has become a practical way to feed cleaner supply chains and a growing circular economy.
But what does this trend look like in the UAE and wider GCC region? Is the region behind or ahead of the curve? And what should entrepreneurs and businesses in the region be thinking about when they decide to enter the market with a sustainable product or service?
These are vital questions, and there are some disconnects that are not always addressed. Meydan Free Zone helps you tap into this demand with a business license issued in under 60 minutes and more than 2,500 business activities to choose from, so you can build your sustainable business model in Dubai.
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Sustainability: What do GCC customers really care about?
The first thing to understand is that awareness of sustainability is growing across the GCC.
A global survey of 23,000 consumers by management consultancy Bain & Company found:²
- 64% of consumers globally reported high levels of concern about sustainability
- More than 60% in the GCC specifically, closely tracking the global average
- Extreme weather was the leading trigger, with worries intensifying over the past two years
And it isn't just a young-consumer story. In terms of age demographics, the picture is more nuanced than many companies assume:²
- 72% of Generation Z consumers globally are very or extremely concerned about the environment
- 68% of Baby Boomers globally report almost the same level of concern
So what's the problem?
Consumer behaviour can evolve faster than many companies expect, often influenced by external factors such as government regulations. A couple of examples show how powerful this can be.
Across the GCC, digital payments leader Visa's 2023 Sustainable Commerce Study found meaningful behaviour shifts:¹
- 86% of Saudi consumers are actively reducing paper usage, the highest across the GCC
- 82% of Qatari consumers are actively reducing single-use plastics
- 75% of UAE consumers are actively reducing single-use plastics
- GCC average: 72% reducing single-use plastic waste
Internationally, similar shifts are underway. In the UK, the Department for Environment, Food & Rural Affairs (Defra) reports that a requirement for retailers to charge customers for single-use plastic bags has reduced usage at main retailers by more than 98% since 2015.³
Where Companies Are Falling Behind
So it's often consumers and governments taking the lead, with companies trying to keep up.
The numbers back this up: Bain found more than 60% of businesses are not on schedule to meet their sustainability objectives.² However, there is reason for optimism, with research suggesting that consumers (and employees) could play a crucial role in guiding businesses towards their sustainability goals.
Businesses listening to their customers and employees will also help with another challenge: aligning a company's sustainability metrics with those most relevant to customers. The two often measure very different things:
It's the role of marketing and good external communication to bridge that gap.
The demand isn't hypothetical. UAE consumers are already voting with their wallets. Here's what the latest data shows.
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Data sourced from YouGov Profiles (Nov 2024–Nov 2025) and Public Desire Global Sustainable Fashion Study (2024).
Keeping Up With Regulations How To Stay Current
To align yourself with what your customers care about, you need to stay up-to-date with government regulations, and where possible get ahead of them. The UAE has made remarkable progress in promoting sustainability through initiatives like UAE Vision 2021, UAE Water Security Strategy 2036, Abu Dhabi Sustainability Week, Dubai Clean Energy Strategy 2050.
In Saudi Arabia, the Saudi Vision 2030 initiative, the National Renewable Energy Program, and the Sustainable Agriculture Initiative are just some of the programs in place.
These various endeavours have heightened awareness and influenced consumer behaviour towards more eco-friendly choices.
Beyond consumer sentiment, formal disclosure rules are tightening too, and our guide to ESG reporting in the UAE breaks down exactly what Federal Decree-Law 11 of 2024 now expects from companies.
What Sectors Are Most Affected?
Almost all sectors are affected by the move to sustainability, but lets focus on four crucial ones:
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Building a Sustainable Business in Dubai with Meydan Free Zone
For founders building a sustainability-focused business in the UAE, Meydan Free Zone offers a setup path structured to match the pace of the demand curve outlined in this blog.Whether you're launching an eco-brand, a sustainability consultancy, or a green-tech venture, Meydan Free Zone gives you the structure to move as fast as the market.
Explore the business activities list or calculate your setup cost to get started.
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Sustainability strategies for businesses
I would recommend focusing on two key areas:
- Stay ahead of regulatory changes. As we have seen, government policies significantly impact consumer behaviour. Across all sectors, companies must take the lead in adapting to regulations that affect their operations. A companys capacity to anticipate policy shifts and develop resilient strategies will determine its ability to outperform competitors.
- Formulate an agile strategy: Following on from the previous point, any plans made for the next decade need to incorporate strategies to cope with rapidly changing regulations and consumer behaviour. In such a dynamic landscape, companies can aggressively leverage marketing experiments, utilising digital tools to swiftly test sustainability messages and adapt to resonate with diverse consumer segments.
The demand for sustainable products in the GCC is no longer hypothetical. Visa's 2023 Sustainable Commerce Study found that between one-third and one-half of consumers across the UAE, Saudi Arabia, Kuwait, and Qatar consciously choose sustainable products even if they are more expensive.¹ Bain & Company's global research shows consumers are willing to pay a 12% premium on average for products with reduced environmental impact.² Companies in the GCC need to keep this in mind.
From fashion to food, and from transportation to tourism, businesses worldwide are adapting to meet this demand by offering eco-friendly alternatives and embracing sustainability practices. In the GCC, this trend is gaining momentum, supported by government initiatives and a growing awareness of environmental issues.
Ready to build your own sustainable business in Dubai? Explore Meydan Free Zone's 2,500+ business activities or calculate your setup cost to get started.
Citations
¹ Visa, "GCC Sustainable Revolution: 2023 Sustainable Commerce Study," December 2023.
² Bain & Company, "Selling Sustainability Means Decoding Consumers: CEO Sustainability Guide 2023," November 2023.
³ UK Government/Defra, "Plastic bag use falls by more than 98% after charge introduction," July 2023.
