The Night Economy: How Ramadan Transforms Cities After Dark

From dawn to sunset, Muslims abstain from food, drink, smoking, and other physical needs. Yet, as the sun sets, cities from Cairo to Jakarta undergo a remarkable transformation. The typically quiet post-dinner hours become bustling hubs of economic and social activity. Streets overflow with people, night markets flourish, and businesses extend their hours well past midnight. Public transport systems often adjust schedules to accommodate increased nighttime mobility.

Beyond its spiritual significance, Ramadan reshapes economic activity. While the overall economic impact varies by sector and region, it is widely regarded as a net economic benefit. Many Muslim-majority countries, including Saudi Arabia, the United Arab Emirates (UAE), and Qatar, mandate shorter working hours during Ramadan, leading to a decline in productivity. However, this is more than offset by a surge in consumer spending. A central tenet of Ramadan—charitable giving—also stimulates economic activity, as Zakat (mandatory almsgiving) and Sadaqah (voluntary charity) drive increased financial transactions and demand for goods and services.

Retail and grocery spending see significant spikes. In Indonesia, retail sales surged by 7% in March 2023 leading up to Ramadan. In Saudi Arabia, the first week of Ramadan 2024 saw consumer spending exceed SAR 38.7 billion (approximately $10.3 billion). The preparation of elaborate traditional meals for Iftar (breaking the fast) and Suhoor (pre-dawn meal) fuels a substantial rise in grocery spending. A survey by HLB found that Muslim households increase their food expenditure by 50–100% during Ramadan, accounting for roughly 15% of their annual food budget. In Egypt, heightened demand during Ramadan 2023 led to a 30% increase in food prices.

Night markets, known as "Ramadan bazaars," become economic and social focal points. Cairo’s historic Khan el-Khalili bazaar, one of the largest and oldest in the Muslim world, experiences a surge in foot traffic, with vendors benefiting from extended evening hours. These markets offer not only food but also clothing, home decor, and artisanal goods, contributing to a broader economic uptick.

Tourism is another sector that benefits from Ramadan. In 2024, the number of people undertaking Umrah—a pilgrimage to Mecca that holds special significance during Ramadan—reached 30 million, significantly contributing to Saudi Arabia’s economy through spending on accommodation, food, and transport. In addition to pilgrimage-driven tourism, cultural tourism in cities such as Istanbul, Dubai, and Kuala Lumpur sees an uptick during Ramadan. Tourists are drawn to the unique blend of religious traditions, nighttime bazaars, and special events that define the holy month. For wealthier Muslims, the Maldives have emerged as a top Ramadan travel destination, recording a 177% increase in bookings from countries of the Gulf Cooperation Council in 2023 compared to 2019, even as other destinations in the Muslim world struggled to recover pre-pandemic visitor numbers.

The end of Ramadan, marked by Eid al-Fitr, is one of the biggest shopping periods of the year, comparable to Christmas or Black Friday in Western markets. Consumers purchase new clothes, accessories, perfumes, home decor, and electronics, with many retailers offering Ramadan-exclusive sales. In Saudi Arabia, spending during Eid al-Fitr exceeded SAR 11 billion ($2.9 billion) in 2024, with a sharp rise in transactions for dining and retail goods.

The rise of e-commerce has further transformed Ramadan spending habits. Online retailers in the Middle East and North Africa reported a 30% increase in sales in March 2024 compared to the previous year. The UAE led in average order value at $102 per transaction. Digital food delivery services also saw significant growth, with over 90% of UAE consumers using apps to order meals, a 20% increase from previous years. Fast food (52%) and desserts (48%) were the most popular categories, while grocery delivery saw a 22% rise.

Entertainment consumption also soars during Ramadan. A YouGov survey commissioned by Netflix found that TV viewership in the Middle East rises by 78% during the holy month, with individuals spending an additional three hours daily watching TV or streaming content. Peak viewing shifts to between 2 a.m. and 5 a.m., making Ramadan the most lucrative period for advertisers. Advertising expenditures can account for up to 40% of total annual ad spending in the region, comparable to Super Bowl-level commercial investment. The Ramadan advertising landscape is not just about increased spending but also about strategic messaging. Brands tailor campaigns to emphasize family values, generosity, and spirituality, aligning with consumer sentiment during the holy month. Many companies adjust their digital marketing efforts to peak engagement times, often late at night when fasting individuals are most active online.

While Ramadan remains deeply rooted in tradition, its economic impact is increasingly shaped by digitalization, shifting consumer habits, and the commercialization of religious observance. From bustling night markets to surging online sales, the month of fasting has become a key driver of economic activity across multiple industries, reinforcing its role as both a spiritual and financial phenomenon.

Statement

Ramadan is not only a spiritual observance but also a major economic force reshaping global commerce. The holy month transforms consumption patterns, from surging grocery and retail sales to booming e-commerce and digital services. Technology especially—such as mobile commerce, and late-night advertising strategies—amplifies Ramadan’s economic impact. Fresh data on tourism, media consumption, and market shifts reveal the evolving intersection of modernization and tradition during Ramadan. Economic growth accelerates as consumer spending surges across various sectors, from retail and hospitality to digital commerce. Shifts in behavior drive demand for e-commerce, entertainment, and travel, reshaping industries throughout the Muslim world.