Consumers in Dubai are said to be more optimistic on the overall state of the economy and job prospects compared to six other leading cities in the world, according to an analysis of consumer confidence conducted by the Department of Economic Development (DED) in Dubai.
The study showed that the overall Consumer Confidence Index for Dubai stood at 142 points during the second quarter of 2016, higher than that of Tokyo, Milan, Paris, New York, Bangkok and London.
It was also an increase compared to the index score of 138 recorded in Dubai during the last quarter of 2015.
DED said in a statement that Dubai also stood out in terms of consumer perception on the overall economy and confidence in personal finance. Consumer perception on the state of the economy was the brightest in Dubai as 82 percent termed it as excellent or good, ahead of New York with 64 percent voicing a similar sentiment.
DED said 86 percent of consumers in Dubai rated their personal finance scenario as excellent or good, compared to 74 percent in New York, 53 percent in Paris, London (50 percent), Milan (42 percent), and Bangkok (36 percent).
The difference in confidence levels wass further reflected in purchase decisions, DED added, saying that in Dubai, 79 percent consumers saw it a good time to buy things they need and want, while in Tokyo, 65 percent didn’t feel confident to go shopping.
Tourism was seen to be the main driver of positive consumer perceptions in all the seven cities but in Dubai particularly, confidence in the state of economy during Q2 was largely founded on the increase in rental/property prices.
“Comparing consumer perceptions on the local economy with similar indicators across other major cities enables us to evaluate how Dubai scores as a global business destination in terms of competitiveness and sustainability,” said Mohammed Ali Rashed Lootah, CEO of the Commercial Compliance & Consumer Protection (CCCP) sector in DED.
Job security and the economy were the major consumer concerns in all the seven cities studied but Dubai and New York led in terms of job security, with the percentage of consumers foreseeing job prospects as excellent or good standing at 78 and 71 percent respectively.
An inadequate increase in salary levels and lack of job opportunities were also cited as the main drivers of negative perceptions on the current state of economy in all the seven cities.
“The comparative analysis shows that the prevailing concerns in major cities are almost same, but there is optimism as well as sectors performing to expectations in certain economies. Particularly, personal spending plans for the year ahead in Dubai indicates an improved sense of job security and financial freedom, as well as robust retail activity ahead,” added Lootah.
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