News

Study Shows Gen Alpha’s Growing Impact On The Digital Economy

Tech-savvy children aged 8-15 are reshaping global shopping and payment trends through their heavy use of social commerce and digital tools.

Published

2 years ago

November 27, 2024

Nour Nasir

study shows gen alpha's growing impact on the digital economy

A new study commissioned by Checkout.com, a global leader in digital payments, shines a spotlight on Generation Alpha (kids aged 8-15) and their increasing role in shaping the digital economy. Conducted across the UAE, UK, US, and China, the research dives into how these young consumers are influencing spending trends and reshaping commerce through technology and social media.

UAE’s Gen Alpha: Online Shopping And Gaming Enthusiasts

In the UAE, Generation Alpha is particularly adept at navigating today’s digital-first economy. The research reveals their heavy reliance on social platforms for shopping, with younger buyers gravitating toward social commerce. While 54% of millennials tend to stick to direct-to-consumer websites, 51% of Gen Z prefer shopping directly through social media.

The gaming sector is another area where the UAE’s young consumers are taking the lead. Children in the UAE spend 47% of their allowances on e-gaming, far surpassing the 28% spent by their peers in the UK, US, and China.

High-Value Purchases On The Rise

Parents’ spending on high-end items is soaring too. The report notes a 46% surge in luxury goods purchases and notable increases in home appliance and travel purchases. This trend signals a rebound in consumer confidence, particularly in recently hard-hit areas like tourism.

Interestingly, UAE kids are not just passive beneficiaries of parental spending. The study reveals that 75% of 8-year-olds and 92% of 15-year-olds in the UAE make purchases independently, often through digital platforms.

Buy Now, Pay Later Gains Traction

The research uncovers a surprising trend: a growing number of UAE children over 13 opt for “Buy Now, Pay Later” (BNPL) services. While still a small percentage (11%), this points to how younger generations are embracing alternative payment methods early on.

Global Insights: Social Commerce And Digital Influence

Globally, Generation Alpha influences about 27% of household spending, with digital purchases accounting for nearly a third of that figure. Parents increasingly buy digital products, such as educational tools and streaming services, with 47% prioritizing online learning resources.

Social media remains a dominant force in shopping habits. Across all regions, children use platforms like Instagram and TikTok to discover deals, with preferences varying slightly between countries. In the US, 57% of young shoppers rely on social media, compared to 41% in the UAE.

Physical stores, meanwhile, are becoming less popular. Just 35% of Gen Z worldwide shop in brick-and-mortar stores regularly, further underlining the shift to digital channels.

A Blueprint For Future Commerce

“Generation Alpha is playing a major role in the digital economy,” says Rory O’Neill, Chief Marketing Officer at Checkout.com. “Businesses must pay close attention to evolving customer preferences to stay competitive in this rapidly changing market”.

News

Microsoft Plans $10 Billion-Plus Gulf Expansion Despite Iran Conflict

Security is shaping Microsoft’s approach, from resilience work with governments to what it will say about how the money splits by country.

Published

3 days ago

September 24, 2026

Nour Nasir

Microsoft

Microsoft is planning more than $10 billion of investment across the UAE, Saudi Arabia, Qatar and Kuwait through 2030, Vice Chair and President Brad Smith told Reuters, calling the spending schedule aggressive. The Iranian conflict that began on February 28 has not persuaded the company to scale back.

“We’re sustaining all the investments we planned to make before this conflict started, and we are in fact adding to them,” Smith said. The $10 billion-plus total does not, however, show how large those additions are.

The investment, which Smith described as part of Microsoft’s continued infrastructure expansion, is aimed at cloud and AI infrastructure and at the company’s growing regional operations. Microsoft also intends to put more than $400 million into subsea and terrestrial connectivity across the Middle East by 2030.

The spending fits the region’s own ambitions too. Gulf governments have been investing heavily in AI infrastructure as part of a push to diversify their economies beyond oil and gas and turn themselves into global technology hubs. Major cloud and AI providers have been drawn in part by the land and relatively low-cost energy on offer.

Microsoft is widening its partnerships with regional AI companies, though not on identical terms. In 2024, it invested $1.5 billion in Abu Dhabi-based G42 for a minority stake, and Smith currently sits on G42’s board. Saudi Arabia’s Humain and Qatar’s Qai are working with Microsoft on selected priority areas, but Smith said the company does not plan to make capital investments in either.

Also Read: Egypt’s Mobile Wallets Are Booming, But Cash Still Has Power

The conflict has added another strand to Microsoft’s work in the region. Since it began, Smith said, the company has supported regional partners with digital resilience assessments, and it is now working with Gulf countries through a digital resilience initiative focused on preparedness and the protection of critical data.

So far, the company has given no country-by-country breakdown of the investment, citing security among other factors. So while the headline figure is public, how Microsoft divides the spending among the four countries is not.