UAE consumers upbeat about personal finances, expect business conditions to improve

Dubai: With all the reports of low oil prices, company job cuts and economic slowdown, one would think that a lot of people in UAE these days are struggling to get by financially. The past year has seen less hiring activity, with corporations being merged or sold in some sectors, leading to cost-cutting, layoffs and salary reductions.

However, it seems that the worst is behind us, the economic situation is improving and employers are again looking to add more employees.  

The latest research showed that optimism is now very much alive and well for most expatriates and local residents in the country, with more people now saying they’re confident about how much money they make or are able to spend and save. A lot of residents are also expecting to see improvements in business conditions and more job vacancies.

According to the Middle East Consumer Confidence Index Survey conducted by Bayt.com and YouGov, nearly seven in ten people (67 per cent) in the UAE believe that their current financial position has improved compared to six months ago.

The majority (56 per cent) are also expecting the state of their finances to get even better in the next six months, while only a small number (9 per cent) feel that matters on the money front will only take a turn for the worse.

When it comes to spending, UAE residents are willing to open their wallets to buy big-ticket items, with nearly half (40 per cent) of people saying they do plan to buy a car in the next 12 months. Among those planning to buy a vehicle, the majority (56 per cent) are eyeing to take home a brand new ride, while 38 per cent said they will just settle for a used one.

There are also a lot of people who intend to invest in a home, with almost a third (29 per cent) of UAE respondents saying they are planning to purchase a piece of property in the next 12 months. Of those who are interested to invest, 56 per cent are on the lookout for a new property, while 32 per cent intend to invest in pre-owned real estate.

Besides real estate, UAE consumers also intend to spend on  new gadgets and other personal items, such as laptops, desktops, smartphones, tablets, as well as home furnishings.

With regards to cost of living, however, UAE households expect to spend more out of their pockets to pay for housing, transportation and other living essentials. According to the survey, 61 per cent of residents in the UAE foresee the cost of living to increase in the next six months, while only 20 per cent believe that their expenses will remain the same.

As far as job creation is concerned, things are also looking good for many people, with one third of those who are employed saying that the staff size in their companies has increased over the past six months. Most of those surveyed (47 per cent) are likewise expecting to see more hiring within their organisation over the same period.