Emirates News Agency – Increase in economic activity boosts consumer confidence, says Dubai Economy

DUBAI, October 17, 2021 (WAM) – Consumer confidence in Dubai reached its highest level in 10 years during the third quarter of 2021, according to the Consumer Confidence Index tracked by Dubai Economy. During the quarter, the index increased by two points compared to the previous quarter and by 21 points compared to the same quarter of 2020.

The Quarterly Consumer Confidence Index measures current and future consumer sentiment toward the state of the economy, local employment prospects, personal finances, and consumer perceptions of whether it is the best. right time to buy the things they need or want.

The Q3 2021 index showed that 73% of consumers were positive about current employment prospects, up from 46% in the same quarter of the previous year. A higher proportion of consumers (88%) were optimistic about employment prospects over the next 12 months, compared to 77% in the third quarter of 2020. Europeans and Americans were the most optimistic (80%) about the outlook for employment. current employment while the Emiratis were the most optimistic (93 percent) about employment prospects over the next 12 months.

Commenting on the results, Mohammed Ali Rashed Lootah, CEO of Commercial Compliance and Consumer Protection at Dubai Economy, said: “The latest consumer confidence index reflects an unprecedented level of positive sentiment towards the state of economy and how Dubai has successfully overcome global economic challenges related to COVID-19 by reactivating economic activity. Clear proof of this optimism is that 86% of consumers think their current personal finances are good, up from 72% at the same time last year.

Lootah added that 82% of consumers who believe it’s a good time to buy things they want or need bode well for consumer spending and local economic growth. “The share of consumers who were positive about the state of the economy in the third quarter of this year rose to 78% from 57% during the same period last year. Meanwhile, the third quarter consumer confidence index also indicates a positive sentiment prevailing among 85 percent on the state of the economy for the next 12 months, up from 72 percent in the same quarter of 2020, ” he added.

The study shows that 82 percent of Emiratis and 81 percent of business leaders of different nationalities think the current state of the economy is good, while 95 percent of public sector employees and 87 percent of men who participated in the study believe that the state of the economy over the next 12 months will be good. “The increase in tourism, the growth of business and the increase in promotional campaigns are the main factors generating a positive sentiment in Dubai,” said Lootah.

The index showed that 44% of consumers plan to spend their money on vacation, 36% of them on outdoor entertainment and 33% on new clothes. The index also showed that 51% of consumers are likely to spend less on new clothes, while 39% plan to cut back on short vacations and 38% on outdoor entertainment in order to stay on budget.

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