Consumer confidence rose to 3-year high in Dubai in final weeks of 2020
Lift in retail and hospitality sectors provides basis for upbeat mood
Dubai: There was a marked improvement in consumer confidence among Dubai's populace, with 84 per cent of UAE citizens sharing those sentiments about their personal finances. It was at 82 per cent when taken for the emirate's entire resident base.
This also translated into a belief that an economic upturn was imminent after the COVID-19 phase. This was the view of 97 per cent of UAE nationals polled in a Dubai Economy survey. Among the wider populace it was at 83 per cent.
Rebound in belief
This would have been strengthened by the upturn seen in the retail and hospitality sectors, as well as confidence that the travel industry was close to a full-fledged recovery. Dubai saw its Consumer Confidence Index during the last quarter of 2020 rising to the highest level since the third quarter of 2017. The Q4-2020 index of 142 points was way above the 133 points in the same period in 2019 and the 132 points recorded in Q3-2020.
Mohammed Ali Rashed Lootah, CEO of Commercial Compliance & Consumer Protection Sector in Dubai Economy, said: “During the last quarter of 2020 as many as 82 per cent consumers were positive on the state of their personal finances over the next 12 months.”
Economic initiatives and growth in activity that followed the reopening of the markets have strengthened the optimism on jobs.
- 74% of consumers in feel the time is right to buy the things they need or want to buy
- Among those who expect to have funds left over after basic expenses, 43% would spend the balance on vacations. And 36% plan to save it for the future
- 54% were planning to reduce outdoor entertainment to balance expenses and income
- 53% intend to cut down on buying new clothes
- 48% would delay tech upgrades
- 39% would reduce ordering food from outside