By Sam Bridge
Consumers in Dubai remain upbeat about the local economy and their personal finances, according to survey
Consumers in Dubai remain upbeat about the local economy and their personal finances, largely due to an anticipated improvement across tourism, trading and employment.
Nationals and expats forecast a bright outlook in a quarterly consumer confidence survey of Dubai Economy. The Consumer Confidence Index stood at 139 points in the second quarter of 2019, a marginal decline of one point over the previous quarter, as 87 percent of the survey respondents expressed satisfaction on their current personal finances.
While 80 percent of the respondents were positive about their personal finances over the next 12 months, the proportion of confident expatriates was higher at 86 percent.
Job security was the biggest concern for the respondents in Q2, followed by the economy while political stability in other Arab countries, work-life balance, high prices, increased utility bills, health, global warming, and children's education were also among the concerns cited.
The index is an initiative of Dubai Economy and was launched to enhance transparency in the local business and investment environment.
Mohammed Ali Rashed Lootah, CEO of the Commercial Compliance and Consumer Protection sector at Dubai Economy, said the index results for Q2 reflected the optimism prevailing among different consumer segments.
The survey showed that among UAE nationals, 88 percent were optimistic about their personal financial situation in the next 12 months. The proportion of consumers who rated their current personal conditions as excellent and good was slightly higher in Q2 compared to the previous quarter.
Almost half of the citizens said they see excellent chances of getting a job in the next 12 months and 27 percent of expatriates expressed similar sentiments.
On buying things they need and want, 18 percent rated current prices as excellent, while 60 percent described it as good. The percentage of consumers who felt the time is excellent or good to make purchases remained almost the same (89 percent) during the first two quarters of 2019.
Emaratis were more optimistic than expatriates about the state of the economy during the second quarter and overall, perceptions slightly declined compared to the first quarter.
The state of the economy was described as excellent by 23 percent consumers while 45 percent called it good. The main drivers of the positive perception was improving trade and tourism, while the lack of job opportunities (80 percent) and the lack of increase in salary (82 percent) were the main factors that weighed on sentiment.