Although consumers in the UAE are becoming increasingly mindful of their spending, the style-conscious among them are still on a fashion bender, frequenting clothing stores and souqs to keep their wardrobe in tune with the latest trends.
According to a recent survey by Nielsen, majority of consumers in the UAE are indeed putting money in saving and paying off debts, but many have started spending more on fashion.
The survey indicates that as the economy starts to get back on its feet after the recession, consumers' appetite for the latest fashion has been on the upswing, with the number of residents spending their spare cash on new clothes growing from 23 per cent in April to 27 per cent in October this year.
Vanessa Northway of Heriot-Watt University Dubai Campus, says Dubai's "fashion spending bubble" is indeed very much alive and well, as a lot of people are still paying a fortune on clothes and accessories without blinking at the price tag.
"There still seems to be spending but it's more cautious. A lot of people here have gone into a bit of a state of panic and slowed their spending for the just-in-case-something-happens-to-us scenario but there are still confident shoppers out there," notes Northway, an academic head and senior teaching fellow at the School of Textiles and Design at Heriot-Watt.
Boasting some of the largest shopping malls in the world, the Arabian Gulf is home to a wide array of international fashion brands catering to the varied tastes of wealthy and fashion-conscious residents.
With the region's tax-free environment and a young growing population, per capita spending in the Gulf is among the highest worldwide.
Industry experts estimate that regional spending on bags, shoes and other leather products alone amounts to more than $413 per head per annum.
Across the Middle East, imports of clothing and fashion-related products were estimated at almost $11 billion in 2007, while imports by the Arabian Gulf states were approximately $5.6 billion.
In Dubai, imports of apparel and clothing accessories increased from Dh7.58 billion in 2007 to Dh8.83 billion in 2008, according to the Dubai Chamber of Commerce and Industry.
