Dubai: 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 last year and 132 points recorded in Q3 2020.
Mohammed Ali Rashed Lootah, CEO of the Commercial Compliance & Consumer Protection Sector in Dubai Economy, said the rising consumer confidence in the emirate was primarily due to expected improvements in personal finance conditions. "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, compared to 79 per cent in the same period last year, and optimism was particularly high among 84 per cent of UAE citizens."
Expectations of an improvement in economic conditions in Dubai over the next 12 months also remain high among consumers as 83 per cent in general and 97 per cent among UAE nationals expressed such optimism. The positive sentiment is further reflected in 85 per cent consumers looking forward to new job opportunities over the next 12 months. Economic initiatives and growth in economic activity that followed the reopening of the markets have strengthened the optimism on jobs.
Overall, 74 per cent consumers feel the time is right to buy the things they need or want to buy, while the feeling is shared by 91 per cent of UAE nationals. Among those consumers who expect to have money left after basic expenses 43 per cent said they would spend the balance on vacations while 36 per cent plan to save it for the future. Reducing outdoor entertainment to balance expenses and income is part of the plan for 54 per cent of consumers while 53 per cent intend to cut down on buying new clothes, 48 per cent would delay technology upgrades, and 39 per cent would reduce ordering food from outside.
The Consumer Confidence Index captures a consumer's perceptions on the economy as well as intentions and expectations of buying and saving. The study help in developing policies related to consumer protection in addition to enabling the private sector to estimate demand and develop their marketing strategies accordingly.
Dubai Economy also urged consumers to report any negative phenomena or practice that violate the precautionary guidelines against COVID-19 through the Dubai Consumer App available on Apple, Google and Huawei stores, by calling 600545555 or on the Consumerrights.ae website.