UAE tops Arab consumer spending

TOP SPENDERS: People in Emirates spend just under $20,000 annually on consumer goods and services, according to the study. (Getty Images)

UAE residents spend more on consumer goods and services than any other Arab nation, according to a report released this week by the Abu Dhabi-based Arab Monetary Fund (AMF).

The report states that people in the UAE spend just under $20,000 annually on consumer goods and services, representing the highest average of all Arab nations.

In 2006 the UAE’s private consumption covering spending by individuals and families on goods and services totalled $84 billion. The figure works out as $19,761 per individual for a population of 4.25 million, according to the report.

The level is far higher than spending in other Arab countries. The total for second-placed Qatar was around $10 billion, or an average of $12,500 per person.

Bankers believe the figure is a result of the UAE’s high per capita income, rapid economic growth, liberalism and socio-economic stability, UAE daily Khaleej Times reported on Monday.

Kuwait ranked third, with its private consumption totalling $27.8 billion or an individual average of nearly $9,266. Bahrain emerged as the fourth largest spender despite its relatively low oil wealth, with private consumption standing at $5.6 billion or average of $7,587 per person.

Oman and Lebanon were ahead of Saudi Arabia, even though the kingdom controls nearly a quarter of the world’s oil and has the fourth largest gas reserves.

Despite Saudi Arabia’s high total consumption of nearly $88.8 billion, which surpassed that of the UAE, average individual spending stood at around $3,764 for a population of nearly 23.6 million, almost six times that of the UAE.

The report showed Mauritania, one of the poorest Arab nations, had the lowest individual spending, standing at just $362. Djibouti also had a low average of around $795, while the report gives no figures for Somalia and Palestine.

The report gives no figures for 2007, but the UAE is expected to have maintained its position given the surge in the economy and income levels, the AMF said.

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READERS' COMMENTS

few comments about this information
Posted by Mars on Monday 7 January 2008 at 15:43 UAE time

Saudi Arabia has at least 40% of the population are still in schools and do not have income to spend on consumer products and services. Add to that the fact that the majority of women do not work and also do not have income. Therefore it is wise to say that 30% at the most can actually spend and therefore, if we do simple calculation we will end up saying that Saudi Arabia average consumer spending is at least USD12500 annually (nearly 4000 Saudi Riyals per month). This is more realistic than the above figures in above article.

My figures are considered even low for a country such as Saudi Arabia because of lack of entertainment business, unemployment rate, low wages, high foreign money transfers...etc.

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