Consumer confidence in Dubai hit its highest level in ten years during the third quarter of this year.
According to the Consumer Confidence Index, which is tracked by Dubai Economy, during July and August it increased two points from the previous quarter and 21 points compared to the same quarter of 2020.
The index measures current and future sentiment of consumers towards the state of the economy, job prospects locally, personal finances and consumers’ perception on whether it’s a good time to buy things they need or want.
“An increase in tourism, growth in business, and rise in promotional campaigns are the main factors driving positive sentiment in Dubai,” said Mohammed Ali Rashed Lootah, CEO of the Commercial Compliance & Consumer Protection sector in Dubai Economy.
The Q3 2021 Index showed that 73 percent of consumers were positive about current job prospects, compared to 46 percent in the same quarter of the previous year. A higher share of consumers (88 percent) were optimistic about job prospects in the next 12 months, compared to 77 percent in Q3 2020.
Europeans and Americans were the most optimistic (88 percent) on the employment front, while Emiratis were the most optimistic (93 percent) in the next 12 months.
Lootah added: “The latest Consumer Confidence Index reflects an unprecedented level of positive sentiment towards the state of the economy and how Dubai successfully overcame the global economic challenges related to Covid-19 by reactivating the economic activity.
Mohammed Ali Rashed Lootah, CEO of the Commercial Compliance & Consumer Protection Sector in Dubai Economy.
“A clear proof of this optimism is 86 percent of consumers believing that their current personal finances are good compared to 72 percent in the same period of last year.”
The share of consumers who were positive about the state of the economy during the third quarter of this year extended to 78 percent from 57 percent during the same period last year. Meanwhile, the third quarter Consumer Confidence Index also indicated positive sentiment prevailing among 85 percent on the state of the economy for the next 12 months, compared to 72 percent in the same quarter of 2020.
The study shows that 82 percent of Emiratis and 81 percent business owners from different nationalities believe that the current state of economy is good.
The index also revealed that 44 percent of consumers plan to spend their spare cash on holidays, 36 percent of them on outdoor entertainment, and 33 percent on new clothes.
Follow us on
