Six ways to save money during Ramadan

Set a budget, prioritise expenses, track spending and compare prices, experts say

A cannon at Sheikh Zayed Grand Mosque in Abu Dhabi is fired to mark the end of the first day of fasting of the holy month this year. All photos: Victor Besa / The National

The mosque is expected to receive a large number of worshippers and visitors throughout Ramadan 1445

Cannon were fired across the Emirates to signify the start of the first iftar of Ramadan 1445

People gathered to watch the firing and take photos

A Ramadan cannon at Sheikh Zayed Grand Mosque in Abu Dhabi

Consumers looking to save money during the month of Ramadan are being encouraged to prioritise expenses, track their spending, compare prices and use cashbacks, discount codes and loyalty programmes to stretch their dirhams.

“Ramadan is a time for spiritual reflection, improvement and increased devotion and worship,” says Joseph El Am, general manager for the Middle East and North Africa at digital wealth manager StashAway.

“However, it's also a period when expenditures can surge due to changes in daily routines, social gatherings and the spirit of giving.”

In the UAE, there’s a growing trend of Ramadan festivities moving indoors as consumers opt for intimate gatherings within the comfort of their homes, according to a report by consultancy RedSeer last month.

Consumers in the UAE are increasingly prioritising affordability and are seeking products at the lowest prices, the report showed.

Four in 10 consumers in the UAE prefer to do the majority of their Ramadan shopping in stores, according to a survey of 2,900 people in the Emirates, Saudi Arabia, Egypt and Indonesia between February 1 and 22 by market research company TGM Research.

UAE consumers have allocated 45 per cent of their Ramadan expenditures to food and drinks, the TGM Ramadan Report in the UAE 2024 found.

Furthermore, 57 per cent of Emirati respondents expressed their intention to increase spending on food and drinks during Ramadan this year.

The report also found that 62 per cent of Emiratis intend to increase their spending on charity during the holy month.

Here, personal finance experts offer their tips on how to avoid spending unnecessarily and save money during Ramadan.

1. Set a budget, prioritise expenses and track spending

Start by defining a budget specifically for Ramadan, Mr El Am suggests.

Factor in all expected expenses, including groceries, iftars outside, Eid gifts and charity, he says.

A clear budget helps prevent overspending and ensures that expenses align with your financial goals, he adds.

“Identify what’s most important. Essentials like food for iftar and suhoor take precedence, while other expenses, such as lavish decorations, might be scaled back,” Mr El Am recommends.

“Use budgeting apps or a simple spreadsheet to monitor your spending throughout the month. This visibility can help you adjust your spending habits in real time.”

2. Groceries and meal planning

Saving is all in the planning, according to Alison Soltani, founder of Leap Savvy Savers.

Planning your iftars and suhoors in advance means that you're not rushing to prepare something or going over budget by impulse shopping, she says.

Shop with a list and stick to the ingredients you need, rather than buying items on a whim, she advises.

“Shopping when you’re hungry means you will almost always buy more than you planned on buying,” she warns.

“If you shop when you’re hungry, shopping online can help alleviate excess spending. Supermarkets have excellent marketing and you will likely be tempted into buying a bunch of unhealthy snacks.”

Watch: First Ramadan cannon of 2024 fired in Abu Dhabi

Cooking simple, healthy meals at home using staple ingredients can be nourishing for the body and the wallet during the holy month, Ms Soltani recommends.

“If you are often the one hosting during Ramadan, try organising a potluck whereby everyone contributes a dish,” she says.

Sophia Bhatti, director of Dubai-based Wimbledon Wealth, suggests taking advantage of sales and discounts offered by supermarkets and grocery stores.

Look for budget-friendly iftar deals or set menus offered by restaurants and share meals with family and friends when dining out to reduce costs, she says.

“Purchase non-perishable items in bulk before Ramadan begins, taking advantage of pre-Ramadan sales. Look for offers on rice, lentils, spices and other staples,” according to Mr El Am.

However, Abhishek Datta, associate vice president at financial services company The Continental Group, says it’s not wise to buy in bulk at supermarkets.

“During widely celebrated festivals like Ramadan, you might encounter sales and discount signs. That may trigger spaving, the act of spending money to buy more than you initially needed, all because of some perceived savings,” he warns.

“Similarly, brands ramp up advertisements during Ramadan, hoping to market to people on their shopping routine and leisurely outings. If you avoid visiting shopping malls too often, you can steer clear of advertisements intended to make you spend impulsively on things you don’t need.”

Understanding psychological shopping tendencies and building the self-awareness to distinguish between “needs” and “wants” are key to saving money during Ramadan and beyond, Mr Datta explains.

3. Search for discounts and deals

Utilise loyalty points and membership discounts to access exclusive deals. Many retailers offer special Ramadan rewards that can be redeemed for discounts or gifts, Mr El Am suggests.

“Shop for Eid gifts early in the month to avoid last-minute price hikes,” he points out.

“Additionally, shopping during off-peak hours can lead to finding better deals as shops may offer special prices to attract customers during slow times.”

Major retailers have announced discounts of up to 75 per cent and it’s worth shopping around for the best deals during this month, Ms Soltani reckons.

4. Shopping online

For non-food items, compare prices across different online platforms. Sometimes, significant price differences for the same product can be found, Mr El Am suggests.

Look for cashback options and apply discount codes at checkout. Many websites and apps offer special Ramadan deals, he says.

5. Charitable giving

Plan your Zakat and charitable donations in advance and allocate a specific amount within your budget, Ms Bhatti recommends.

Consider giving non-monetary donations, such as volunteering your time or skills, to save money, she suggests.

Pool resources with family or friends to support larger charitable initiatives and maximise impact, she says.

Consider home-made gifts or meals as a form of charity, according to Mr El Am.

“These personal touches are often more appreciated and can be more cost-effective than store-bought items,” he says.

“Always make sure you are aware of all the rules and regulations around charity donation and have the appropriate licenses.”

Making gifts is not only cost effective but also conveys a personal and thoughtful touch, suggests Rupert Connor, partner of Abacus Financial Consultants.

Handmade gifts are the perfect way to show someone just how they are cared for without having to spend a lot of money.

Not only do they demonstrate creative skills, but handmade items can also be tailored specifically to the receiver’s individual preferences and style, he says.

6. Planning ahead for Eid travel

Start planning your Eid holiday well in advance. Airlines and hotels often offer early bird discounts to travellers who book ahead, Mr El Am suggests.

This not only saves money but also ensures you get your preferred flights and accommodations, he says.

“Consider destinations that offer value for money. Some places might be less crowded and more affordable during Eid. Researching destinations that are off the beaten path can lead to significant savings,” he adds.

CIS countries like Georgia, Armenia, Azerbaijan, Kazakhstan and Kyrgyzstan continue to be in demand and sought-after destinations for Eid Al Fitr packages, offering hassle-free visa processes, affordability and immersive cultural experiences, according to a report last week by travel management company Musafir.com.

Uzbekistan is also gaining popularity for its accessibility and affordability, the report says.

Travellers are also showing interest in exploring locations such as Japan, Vietnam, Sri Lanka, Nepal, Greece, Italy, Netherlands, Switzerland, France, Malaysia and Indonesia, according to Musafir.com.

“Utilise travel comparison websites to find the best deals on flights, hotels and car rentals. These platforms can help you compare prices across different providers, ensuring you get the best possible deal,” Mr El Am advises.

“If you have been accumulating points or miles through credit cards or loyalty programmes, the Eid holiday is an excellent time to redeem them. This can substantially reduce the cost of flights or hotel stays.”

He also suggests considering package deals that include flights, hotels and activities. These can offer better value than booking everything separately.

However, ensure that the included offerings align with your preferences to avoid paying for services you won’t use, he warns.

“By implementing these tips, you can enjoy a spiritually fulfilling Ramadan without straining your finances. The key is planning and mindful spending,” Mr El Am adds.