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Mon 27 Jan 2020 04:10 PM

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Dubai consumer confidence dips slightly on job security fears

Quarterly business survey shows 75% of consumers are confident of the employment situation improving during the next 12 months

Dubai consumer confidence dips slightly on job security fears

The Consumer Confidence Index showed a slight decrease to 133 points from the previous quarter.

Consumers in Dubai see improved job prospects and personal finances ahead, according to the quarterly business survey of Dubai Economy.

The survey conducted during the last quarter of 2019 showed 75 percent of consumers are confident of the employment situation improving during the next 12 months.

The Consumer Confidence Index showed a slight decrease to 133 points from the previous quarter, but 77 percent of respondents said they were positive about their current personal finances and the percentage of those optimistic rose to 79 percent when asked about the next 12 months.

Job security was the biggest concern during this quarter, with the percentage reaching 42 percent among expats and 15 percent among nationals. The economy ranked second on the list of major concerns for 16 percent of expats and 9 percent of nationals.

Although job security remains a major concern, 63 percent of consumers rated current job prospects as excellent/good, while nearly half said they plan to cut down on outdoor entertainment and delay technology updates such as personal computers, mobile phones.

Mohammed Ali Rashed Lootah, CEO of the Commercial Compliance & Consumer Protection (CCCP) sector in Dubai Economy said: “Dubai’s economy recorded positive results during Q4 2019... The year 2020 started with a high level of momentum and coincided with the announcement of the January 4 Charter, the completion of many infrastructure projects, and the government’s aggressive follow-up of institutional performance to ensure preparedness for the Expo 2020 and the next 50 years at the national level”.

The Q4 2019 survey showed 77 percent of UAE nationals as being optimistic about finding a job, with 22 percent describing it as excellent, and 55 percent as good.

Among expats, 57 percent expressed optimism about current job prospects, while 84 percent nationals and 71 percent among expats were positive on the chances of finding a job during the next 12 months.

Regarding current personal finances, 76 percent of consumers expressed optimism.

When asked about buying the things they need and want to buy, 60 percent expressed their satisfaction with the cost of products.

Perceptions on the economic situation in Dubai were highly positive among nationals at 77 percent while more than half of expatriates (56 percent) also expressed optimism.

The positive perception was largely due to the trade momentum and recovery of tourism, while the lack of employment opportunities and the lack of salary increases were among the main reasons for negative views.

Most consumers (86 percent) confirmed that they are able to meet basic life expenses and almost a third said they spend whatever money left on vacations or savings.

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