By Maria Kalamatas – The Logistic News
March 21, 2025 – As geopolitical tensions and persistent supply chain disruptions continue to affect global trade, retailers preparing for Ramadan have faced some of their most challenging conditions yet. Logistics disruptions, rising shipping costs, and fluctuating transit times have forced businesses to rethink their supply chain strategies while ensuring they meet heightened consumer demand during the holy month.
Aramex UK, a leading multinational logistics specialist, has been at the forefront of addressing these challenges, working closely with retailers to mitigate supply chain risks across the Middle East and North Africa (MENA) region.
Ramadan’s Economic Impact: A Critical Retail Period
Ramadan, which began on February 28 and concludes with Eid al-Fitr on March 30, represents a peak shopping season across the MENA region. Consumer spending patterns shift dramatically, with increased demand for:
- Essential food products for suhoor (pre-dawn meal) and iftar (meal to break the fast)
- Modest fashion apparel, including abayas, kaftans, and embroidered outfits
- Luxury accessories, perfumes, skincare, and cosmetics
- Festive gifts in preparation for Eid al-Fitr
Retailers often launch exclusive promotions and marketing campaigns, aiming to capitalize on this high-consumption period. In 2023 alone, retail spending during Ramadan reached $66 billion, highlighting the economic significance of the holy month.
Unprecedented Supply Chain Disruptions
Despite the lucrative potential, escalating instability in the Middle East has severely impacted supply chains. The Suez Canal, the primary trade route between the UK and the Middle East, has been a focal point of disruptions due to ongoing attacks on cargo vessels in the Red Sea. As a result, many shipping companies have rerouted their vessels around the Cape of Good Hope, leading to:
- Extended transit times and shipping delays
- Higher freight costs
- Backlogs at major ports
- Increased demand for air freight, causing processing delays at airports
Umar Butt, CEO of UK and Europe at Aramex, commented on the ongoing supply chain crisis:
“The Suez Canal remains a vital gateway for trade between the UK and the Middle East, yet continuous disruptions in the Red Sea have forced shipping lines to divert routes, adding significant delays and cost increases.”
“For retailers, operating within Ramadan has compounded these issues. Reduced working hours, the introduction of no-fly zones, and compliance challenges have further strained the ability of businesses to ensure their goods arrive on time.”
Retailers Adapting to a New Reality
Major UK retailers, including Next, Matalan, and Asos, have already reported supply chain complications linked to instability in the region. According to a report by the British Chamber of Commerce’s Insights Unit, 50% of UK businesses have been affected by Middle East conflicts, nearly twice the percentage recorded in late 2023.
While the UK remains a key exporter to MENA, particularly in categories such as fashion, footwear, beauty, and personal care products, retailers have been forced to reassess their logistics strategies to maintain access to these lucrative markets.
According to Office for National Statistics (ONS) data, UK exports to the United Arab Emirates alone have surged 171% over the past two decades, reflecting a growing demand for high-quality British brands in the region.
Navigating Uncertainty: Strategies for Retail Success
Retailers looking to maintain a competitive edge in the MENA region must adopt agile and flexible logistics solutions. Aramex UK highlights several key approaches:
- Diversifying transport routes to mitigate risk and avoid congestion-prone areas
- Leveraging alternative shipping modes such as multimodal transport solutions
- Strengthening digital adoption to improve supply chain visibility and adaptability
Umar Butt added:
“Middle Eastern consumers have a strong affinity for British brands, driven by their reputation for quality and prestige. With many consumers traveling to London for shopping, they are already familiar with UK retailers, fueling sustained demand across the region.”
“Retailers need to plan ahead, embrace agility in logistics, and explore alternative transport options to navigate this complex environment. Without an understanding of the regional supply chain landscape, brands risk losing out on a critical sales period.”
Looking Ahead: Hope for Stability, But Challenges Remain
As global tensions persist, businesses remain hopeful for improved stability in the region. However, adaptive logistics planning will be essential in ensuring the continued success of retailers targeting the Middle Eastern market.
For now, companies that invest in resilient supply chain strategies and collaborate with experienced logistics partners stand the best chance of capitalizing on Ramadan’s economic potential while overcoming ongoing logistical challenges.
For the latest updates on supply chain trends and global trade insights, stay connected with The Logistic News.
Maria Kalamatas
Senior Journalist, The Logistic News
