53% of income spent on food, rent

Dubai: UAE residents spend 53.6 per cent of their income on housing and food on an average, said a latest government survey.

The first household income and expenditure survey conducted by the Ministry of Economy is part of its plans to develop a consumer price index (CPI).

The average household income of a UAE family is Dh36,438, which is about 141 per cent higher than the expat household income, estimated at Dh15,074.

"The average monthly household income of UAE residents is Dh18,248.60 and expenditure is Dh11,241.20. The percentage of expenditure on housing and utilities is 39.4 per cent of income, while expenditure on food and beverages is 14.2 per cent," the Ministry of Economy said in a statement, releasing its findings.

The average size of a household in the country is 5.1 with UAE national households comprising 19.1 per cent; expatriate households accounting for 61.9 per cent. About 19 per cent of the country's households live in sharing accommodation.

Sultan Bin Saeed Al Mansouri, UAE Minister of Economy, said, "The results will support decision-makers in implementing developmental plans and formulating socio-economic policies, and will also cater for the statistical requirements of international organisations including the World Bank."

The survey undertaken in association with the Dubai Statistics Centre, Department of Planning and Economy in Abu Dhabi, Sharjah Information Systems Department and other local and Federal Government entities revealed that the average monthly household income of UAE residents is Dh18,248.60 and expenditure is Dh11,241.20.

The International Monetary Fund (IMF) and World Bank have been advising the UAE in improving household statistics and CPI to monitor inflation.

Al Mansouri also said that the survey will help to calculate inflation rates and consumer price indices, according to international standards.

In other highlights, the survey reveals that the average monthly expenditure by national households is Dh22,989 against an average monthly income of Dh36,438.10.

The average non-national household income is Dh15,074.30 and expenditure is Dh9,579. The monthly average expenditure for food and beverages is Dh1,595.80 and that for non-edible commodities and services is Dh9,645.40.

Raju Menon, managing partner at investment advisors Morison Menon Chartered Accountant said that there is a need for different strata results. "If there is an average income and expenditure of all social classes, the required results will not be obtained."

He said that with specific classes, the difference between income and expenditure would be calculated towards better strategies.

"The government will be able to assess cost of living index, if income is equivalent to expenses or if there is a shortage," with different strata results.

However, Menon said that "Any kind of index is good for the country, because there is some transparency on things." Whether the results of the general index would have a real impact or not, such transparency can give value to the economy, he added.

Rashed Al Suwaidi, assistant undersecretary for Statistics and Planning at MOE, said the survey highlights the spending trends in the UAE.

"The average expenditure of nationals and non-nationals vary for different commodities with several factors influencing the decision. The survey helps us to further establish standards in setting consumer price indices, forecasting inflation trends and identifying shifts in spending patterns by linking them to education, career, nationality and place of residence."

The high cost of living here in Dubai gives more expenses to rent and food. How about us in the minimum wage earner? Is there any solution for this? We earn little and we must send money to our families. The rent keeps on increasing and our salary is motionless. How can we cope if all are affected by the global economic downturn? Maybe one day lose our job?
Mhadz
Dubai,UAE
Posted: February 03, 2009, 11:35