Dubai consumers remain upbeat over personal finances

New survey shows 81% say they have a positive outlook with most putting spare cash into savings, holidays

Positive sentiment is running deeper among consumers in Dubai with personal finances improving and more people are willing to put their spare cash into savings and holidays, according to a quarterly survey conducted by the Department of Economic Development (DED).

The Consumer Confidence Index for the second quarter of 2014 remained at 143 points, the same as the previous quarter.

Job security and salary levels remained unchanged as the main concerns for a significant number of consumers but 81 percent rated current job prospects as excellent or good while 93 percent expected the situation to improve in the next 12 months.

The poll also showed that personal finance estimates are brighter with 81 percent of the consumers having a positive outlook currently and 92 percent in the next 12 months.

More than half of consumers polled said they are putting their spare cash into savings and holidays buoyed by the expectations of stable finances while 35 percent said they are likely to make such spending in the next 12 months.

Omar Bushahab, CEO, Commercial Compliance & Consumer Protection (CCCP) sector, DED, said: "The most notable pointer in consumer confidence levels seen in the last few quarters is stability gaining ground and optimism remaining unabated.

"With Dubai now maintaining a steady economic momentum and focus on sustainable growth consumers and businesses will be able to plan in the longer term, without fear of volatility or instability."

Survey findings indicated that locals seem to be more optimistic on the current state of the economy and personal finance compared to expats.

Rising rental/property prices and tourism were the causes of optimism for the next 12 months while "lack of job opportunities" and "not much increase in salary level" were the main concerns, according to the survey.

It added that the number of consumers who feel that this is a good time to buy things they want slightly increased during Q2 of 2014. Around two-third of the consumers feel that it is good time to buy thing they need and want.

The Consumer Confidence Index is based on responses to three questions regarding perceptions of local job prospects, personal finances and whether it is good to buy things that people need and want, all over the next 12 months.

Conducted in each quarter, the survey gathers feedbacks from 2,000 respondents, and cover males and females as well as nationals and expatriates, aged 18 to 59.

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