Dubai: Consumers are very optimistic about the performance of the Dubai economy in 2013 with an overwhelming majority expecting better job prospects, the Dubai Department of Economic Development announced yesterday.
Based on the latest Consumer Confidence Survey conducted by the DED, 90 per cent of consumers are happy with the current state of the economy and 95 per cent are anticipating a stronger economic performance in 2013.
The vibrant tourism sector as well as climbing real estate rents and property prices have contributed to the surge in positive perceptions.
Compared to previous survey conducted in the last quarter in 2012, the study revealed a 16 per cent increase in consumer confidence, as a total of 90 per cent of consumers questioned said that they are happy with the current state of Dubai’s economy.
“The prevailing consumer sentiment in Dubai shows an increasing level of confidence in the emirate’s ability to stimulate economic activity, create jobs and generate wealth. Dubai’s bold announcements of a strong commitment to development and pledge to make the emirate more attractive for investment and business is producing the desired results,” said Sami Al Qamzi, Director General of DED.
Omar Bu Shahab, CEO of Commercial and Consumer Protection (CCCP) Sector in DED, pointed out to the sustainable performance of the retail sector.
“Strong personal finance, wider choices and improved customer service quality are also major factors promoting a robust retail sector performance in Dubai,” he added.
Job security and political stability in the rest of the Arab world continue to be major concerns but an overwhelming majority, 87 per cent, expect to see better job prospects this year and 82 per cent rate current job prospects as excellent/good compared to 71 per cent in the previous quarter.
Rising cost of living is a concern for more than half of the respondents and 31 per cent are looking at cutting down on outdoor expenses to save costs in 2013. Other measures being considered by consumers include cutting down on utility charges and telephone bills as well as delaying technology upgrades --phones, computers—in addition to home refurbishments.
Irfan Al Hassani, a UAE-based economist said that rising consumer confidence is a vital proof of the sound economic system in Dubai and the sustainable performance in all business sectors.
“There is no doubt that things are improving as well as a remarkable process in the market.”