Is This the End for the GCC Extravagant Lifestyle?

Published June 18th, 2020 - 01:30 GMT
Is This the End for the GCC Extravagant Lifestyle?
Employees in the GCC are being more careful with their financial decisions. (Shutterstock: Black Kings)

Most experts have been warning us that the world will change forever following the Coronavirus. About six months into the outbreak, we may not have been able to control it, yet we can increasingly define the new features.

As the pandemic continues to ravage the world, uncertainty remains the main word to describe the economy, forcing many individuals to rethink their lifestyles, expenses, and habits.

Being quarantined for several months, during the beginning of 2020, has made it easier for many people to reconsider radical changes, even the ones used to the most lavish of lifestyles.

In the GCC region, young generations of both citizens and residents have been used to having luxurious items and enjoying grand experiences for decades. However, the severity of the current economic troubles is pushing forward less extravagant practices, especially for people whose careers might be threatened.

Khaleej Times just reported a noticeable shift in consumption habits in the UAE, all pressured by the current slowdown. 

According to the UAE Central Bank, local banks have seen a 6.4% spike in savings last April, compared to those of last December. International banks that operate in the country have also climbed by 17% during the same month.

With major companies laying off hundreds of workers and deducting salaries of those who remained, employees in the GCC are being more careful with their financial decisions to maintain their ability to purchase their basic needs even in the worst of times.

Real estate purchases and rentals have been slowed as demand continues to be at its lowest in years, affecting prices that have dropped by 25% since 2014.

Even as UAE airports prepare to open next week, many expats have taken the decision to skip their annual going home trips for the year, in an attempt to avoid unnecessary expenses.

Moreover, in a report published last week, Arabian Business highlighted a 150% rise in used car sales in the UAE during early May.

Consequently, influencers famous for promoting the most expensive brands have had to adjust their content to the current situation.

Nowadays, instead of endorsing travel and dining experiences, high-end clothing and makeup brands, or even high-tech gadgets, influencers are more focused on daily-basics that are affordable by most people.

Instead of touring cities across the world for their videos and Instagram feeds, today's online models are either cooking, working out, or discussing health issues that have become more relevant since the viral outbreak.

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