DUBAI 27 October 2019: Job security was the biggest concern in Q2 2019 for respondents of a consumer confidence survey by Dubai Economy.
It was followed by the economy while political stability in other Arab countries, work-life balance, high prices, increased utility bills, health, global warming, and children’s education were also among the concerns cited.
Overall, consumers in Dubai remain upbeat on the overall economy in the emirate and their personal finances with optimism largely stemming from anticipated improvement across tourism, trading and employment.
The overall Consumer Confidence Index stood at 139 points in the second quarter of 2019, a marginal decline of one point over the previous quarter, as 87 percent of the survey respondents expressed satisfaction on their current personal finances. While 80 percent of the respondents were positive on their personal finances over the next 12 months the proportion of confident expatriates was higher at 86 percent.
The Consumer Confidence Index is an initiative of Dubai Economy, launched to enhance transparency in the local business and investment environment. It also helps to provide businesses and investors with relevant data to support their future plans and enable them launch new projects, services and products for consumers in Dubai, said Wam.
The survey showed that among UAE nationals, 88 percent were optimistic about their personal financial situation in the next 12 months. The proportion of consumers who rated their current personal physical conditions as excellent and good was slightly higher in Q2, 2019 compared to the previous quarter. Almost half of the citizens see excellent chances of getting a job in the next 12 months and 27 percent of expatriates expressed similar sentiments.
On buying things they need and want, 18 percent rated the current prices as ‘excellent,’ while 60 percent described it as ‘good.’ The percentage of consumers who felt the time is ‘excellent/good’ to make purchases remained almost the same (89 percent) during the first two quarters of 2019.
Emaratis were more optimistic than expatriates about the state of the economy during the second quarter and overall, perceptions slightly declined compared to the first quarter. The state of the economy was described as ‘excellent’ by 23 percent consumers while 45 percent called it ‘good.’ The main drivers of the positive perception was improving trade and tourism, while the lack of job opportunities (80 percent) and the lack of increase in salary (82 percent) were the main pulldown factors even when improved job opportunities and higher salaries were foreseen by a segment of those surveyed. Along with the trade and tourism boom, increased advertising, higher profits, and rising rents/ real estate prices were cause for optimism on the economy for many.
Technology upgradation was not on the list for almost 51 percent of consumers in Q2 2019 chiefly due to budget constraints. Cost-cutting measures under consideration as mentioned by respondents included lesser spending on holidays/vacation/leisure activities as well as new clothes, postponing home refurbishing plans, rationalising gas and electricity consumption, switching to cheaper grocery, and looking for best options on home loans, insurance and credit cards.