Dubai: The first quarter of 2021 saw consumer confidence in Dubai rising to its highest level since the second quarter of 2015, according to the Consumer Confidence Index released by Dubai Economy.
The index recorded 145 points in Q1 2021, compared to 139 points during the same period of the previous year, and 142 points in Q4 2020.
“Consumers expressing optimism on their personal finance conditions during the first three months of this year have increased to 77 per cent, compared to 70 per cent during the last quarter of 2020. Optimism on personal finance conditions during the next 12 months is also evident among 84 per cent of consumers compared to 73 per cent during the same period last year,” said Mohammed Ali Rashed Lootah, CEO of the Commercial Compliance & Consumer Protection (CCCP) Sector in Dubai Economy.
Improved personal finance
The Index also shows that optimism on current personal finance conditions is particularly high among Emiratis at 89 per cent while 87 per cent Arab expatriates are the most optimistic about an improvement in personal finance during the next 12 months.
The Index shows 84 per cent of consumers as optimistic about the overall economy during the next 12 months. Among Emiratis, 89 per cent were optimistic on the economic situation, while the positive sentiment was also shared by 87 per cent of Western expatriates. In addition, 87 per cent of consumers see improved chance of getting a job during the next 12 months with those in the 30-39 age group being more optimistic (90 per cent), indicating brighter perceptions on the job market.
Pent-up demand
For 79 per cent of consumers, it’s the right time to buy the things they need or want to buy and in general, 89 per cent of Western expatriates and 94 per cent of public sector employees also plan to buy.
In terms of money in excess of basic needs, 38 per cent said they will spend on vacations and 37 per cent on outdoor entertainment, while 34 per cent plan to save. The measures planned by consumers as part of staying within budget include cutting down on buying new clothes, (48 per cent consumers), delaying technology upgrades (43 per cent) and reducing ordering meals from outside (41 per cent).
The Consumer Confidence Index captures a consumer's perceptions on the overall economy, personal finance and job opportunities as well as intentions and expectations of buying and saving.
