Wed 31-03-2021 19:36 PM
DUBAI, 31st March, 2021 (WAM) -- 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.
Mohammed Ali Rashed Lootah, CEO of the Commercial Compliance & Consumer Protection (CCCP) Sector in Dubai Economy, stated that the Consumer Confidence Index has risen mainly driven by improvements in personal finance conditions of consumers.
Lootah said, "Consumers expressing optimism on their personal finance conditions during the first three months of this year have increased to 77%, compared to 70% during the last quarter of 2020. Optimism on personal finance conditions during the next 12 months is also evident among 84% of consumers compared to 73% during the same period last year.
"The Index also shows that optimism on current personal finance conditions is particularly high among Emiratis at 89%, while 87% Arab expatriates are the most optimistic about an improvement in personal finance during the next 12 months."
The Index shows 84% of consumers as optimistic about the overall economy during the next 12 months. Among Emiratis, 89% were optimistic on the economic situation, while the positive sentiment was also shared by 87% of Western expatriates. In addition, 87% 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%), indicating brighter perceptions on the job market.
For 79% of consumers, it’s the right time to buy the things they need or want to buy and in general, 89% of Western expatriates and 94% of public sector employees also plan to buy. In terms of money in excess of basic needs, 38% said they will spend on vacations and 37% on outdoor entertainment, while 34% plan to save. The measures planned by consumers as part of staying within budget include cutting down on buying new clothes, (48% consumers), delaying technology upgrades (43%) and reducing ordering meals from outside (41%).
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. The study helps 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.