DUBAI 24 December 2019: Consumers in Dubai seem confident over their personal finances and job prospects in the coming months, as indicated by the quarterly consumer confidence survey of Dubai Economy.
The Consumer Confidence Index (CCI), score in Dubai for the July-August-September 2019 period was at 137, indicating a high level of optimism and a brighter outlook.
The quarterly consumer confidence survey is part of providing businesses and investors with a reference on the overall consumer sentiment by analysing data on the dimensions of economic activity critical to competitive and sustainable business growth in Dubai and the UAE.
The survey showed that 84 percent of Emiratis were optimistic about their jobs in the third quarter, while among expatriates, 13 percent saw the situation as “excellent” and 56 percent termed it “good”. Job prospects for the next 12 months were “excellent” for 52 percent Emiratis and 32 percent expats, and 43 percent of the expats termed them “good”.
Mohammed Ali Rashed Lootah, CEO of the Commercial Compliance and Consumer Protection, CCCP, sector, said, “Certainly, there are factors that will boost optimism in the coming months, including the steps taken by the government to reassure people, ensure happiness among all segments of the society, and accelerate economic growth.
“One of the most important facts revealed by the survey is that over 80 percent of consumers are optimistic about the employment situation improving in the next 12 months,” he added.
Though consumer perceptions on the overall economic situation showed a marginal decline, 77 percent of the respondents in the survey were positive about their current personal financial situation and the percentage will rise to 78 percent for the next 12 months.
Over the next 12 months, 84 percent of Emiratis see their personal finances improving and 37 percent particularly look forward to “excellent” progress. Among expatriates, 30 percent look forward to “excellent” personal finances in the next year, while 47 percent see them as “good”.
The recovery in the tourism and trade sectors, growth in spending on advertising and increasing traffic have given positive signals to consumers in general and it is reflected in their perception on the general economic situation in Dubai. Emiratis appear to be more optimistic with 32 percent terming the overall situation as “excellent” compared to 12 percent expatriates.
Job Security Main Concern
Job security was the main concern in Q3 of 2019 followed by work/life balance, as well as an increase in utility bills and the rising cost of fuel, education, healthcare, and food items.
A majority of consumers (83 percent) said they can cover basic living expenses at present, while a third of consumers said they have enough savings to spend on holidays and 34 percent plan to spend on entertainment, new clothes, new technology products, home renovations and vacations in the next 12 months. Delaying technology upgrades, trimming holiday budgets and reducing recreational activities are some of the measures planned by families to cut costs.