UAE-based shoppers increasing credit card usage for electronics, home furnishing and jewelry/watches since July 2010
From July 2010, shoppers in the UAE have increased their purchases of electronics by up to 20 per cent, home furnishing by up to 10 per cent and jewelry/watches by up to 10 per cent, while retail categories such as men's fashion, ladies' fashion, shoes, books/music , and restaurants have seen a slight decline. According to analysis by Majid Al Futtaim Finance, issuers of Najm Visa and Najm JCB, the fastest-growing purchase by credit card is electronics, while shoppers are currently least likely to buy men's fashion with their 'plastic.'
Since the launch of the Najm Visa in July, Majid Al Futtaim Finance found that cardholders used their cards most frequently at supermarkets such as Carrefour, accounting for up to 57 percent of total monthly spend. There has been a significant growth in retail spends on credit card usage; more than 30 percent over the same period in 2009, according to Majid Al Futtaim Finance's findings.
"Since launching the Najm Visa in July, we've found that retail spending by cardholders is higher at Majid Al Futtaim's partner retail outlets, whether due to dedicated check-out counters at Carrefour or the savings benefits that the card confers at retail outlets such as Juicy Couture or entertainment destinations like Ski Dubai and Magic Planet," said Rasool Hujair, CEO, Majid Al Futtaim Finance.
"Given the international brand recognition of Visa, we've found that travel related spends and international transactions have increased by 20 percent during this summer. This also attributes to the travel insurance, purchase protection and lost card liability cover that is offered on the Najm Visa," he added.
"We are delighted to partner with Majid Al Futtaim retail and leisure brands ", added Ricky Madan Visa Country Manager UAE." Visa is constantly looking for new and innovative ways to extend our services to new market segments and we believe that our cardholders will see tremendous value in this new retail co branded Visa Najm card."
"Being one of the newest start-ups of Majid Al Futtaim, Majid Al Futtaim Finance leverages the Group's retail, shopping and entertainment business to offer UAE shoppers unparalleled offers and rewards them for their loyalty and spend at Carrefour outlets across the UAE" said Ahmed Galal Ismail, CEO Majid Al Futtaim Ventures and Chairman Majid Al Futtaim Finance.
UAE credit card holders are also using their 'plastic' to balance the demands of their social lives. Spending trends with the Najm Visa show that spends in the restaurants and hotels category have shot up to 50 percent in the last year. "Overall, the recent findings of Majid Al Futtaim Finance indicate that UAE consumers are still using the credit cards that offer them the benefits most relevant to their lifestyles, which is a good indicator for the overall financial health of cardholders in the UAE," Hujair concluded.
- Other than showing off: can diamonds be bought for investment purposes?
- Betting on her country: Libyan female entrepreneur thrives against all odds
- There's no blaming 'outside forces' this time: Al-Assad loses supporters over $50 million glitzy mall investment
- From concerts to Formula One: UAE's top earners choose to spend on 'life-enriching' experiences
- Which Middle Eastern designers will make it to fashion show on top of the Eiffel tower?