Consumer Confidence Index in Dubai Witnesses a Marginal Decline in Q2

Published October 27th, 2019 - 10:30 GMT
Technology up-gradation was not on the list for almost 51 percent of consumers in Q2 2019 chiefly due to budget constraints.
Technology up-gradation was not on the list for almost 51 percent of consumers in Q2 2019 chiefly due to budget constraints. (Shutterstock)
Highlights
The overall Consumer Confidence Index in Dubai stood at 139 points in the second quarter (Q2) of 2019

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 said a media report.

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The overall Consumer Confidence Index in Dubai stood at 139 points in the second quarter (Q2) of 2019, a marginal decline of one point over the previous quarter, as 87 percent of a Dubai Economy survey respondents expressed satisfaction on their current personal finances, reported Emirates news agency Wam.

 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.

Mohammed Ali Rashed Lootah, CEO of the Commercial Compliance and Consumer Protection (CCCP) sector at Dubai Economy, said the Consumer Confidence Index for Q2 2019 reflected the optimism prevailing among different consumer segments and added that the index is an important tool for enabling Dubai’s sustainable growth by proactively addressing challenges.

"The Consumer Confidence Index and its indicators help understand consumer needs. The Index reveals how consumers respond to available economic data, which in turn plays a crucial role in determining consumption patterns and future trends crucial to traders and investors in making decisions. Informed decisions help them reach all target groups, thus contributing to sustaining the trade and retailing in Dubai and the UAE," Lootah added.

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.

Emiratis 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.

Job security was the biggest concern for the respondents in Q2 2019, 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.

Technology up-gradation 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, rationalizing gas and electricity consumption, switching to cheaper grocery, and looking for best options on home loans, insurance, and credit cards.


Copyright 2021 Al Hilal Publishing and Marketing Group

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