The results of the consumer confidence survey for the second quarter of 2019, showed a number of positive data and optimistic signals, by consumers of UAE nationals and residents alike. Dubai's consumer confidence index for the reporting period was 139 points, in line with the first quarter, with a marginal decline of just one point, Dubai's economy said in a statement yesterday. In consumer perceptions of the economic situation, 87% of respondents expressed positive feelings about personal financial conditions at present and 80% over the next 12 months. 86% of resident consumers were optimistic about personal financial conditions.

Consumer confidence

The Consumer Confidence Index is an important initiative of Dubai's economy, which aims to establish transparency in the business and investment environment in the Emirate of Dubai, especially as it helps those interested in making their decisions based on the relevant data and supports their future plans when it comes to establishing development projects or launching New services and products for consumers in Dubai.

During the quarter, 88% of UAE nationals were optimistic about the personal financial situation in the next 12 months.

Almost half of the citizens said that the chances of getting a job in the next 12 months were excellent, while 27% of residents expressed the same sentiments. On the perceptions of consumers about buying things they need and want to buy, 18% of them said the cost is excellent, while 60% described it as good. 89% of UAE consumers said they find it "excellent / good" time to buy the things they need and want. The trend of the results showed that the proportion of consumers who rated the current personal physical condition as excellent and good rose slightly, in the second quarter of 2019.

Buy things

The trend of the results showed that the percentage of consumers who feel that this is the time to buy the things they need and want to buy, remained almost the same during the second quarter of 2019. About their plans to modernize technology, almost 51% of consumers said they intend to delay the technology update , To ensure that the budget is not departed.

UAE nationals showed more optimism about the current economic situation during the quarter, although the trend of the results showed that perceptions of the current economic situation decreased slightly during the second quarter of 2019. 23% of the consumers covered the economic situation as excellent, 45% said that everything is OK". He attributed the main reason behind the positive perception to the prosperity of trade and tourism boom, while the lack of job opportunities (80%) and the lack of increase in the level of salary (82%) were the main reasons for the negative perception, note that a segment of them expressed the hope of increasing employment and salaries In the coming period.

Economic situation

Indicators of the improvement in the economic situation, cited in order of importance, include: tourism boom and trade boom, increased advertising, increased traffic congestion, growth of corporate profits and rising rents, or rising real estate prices, in addition to the availability of jobs in many business sectors.

In terms of major concerns over the next six months, job security scored the highest in terms of being the biggest concern this quarter, followed by the economy as the second biggest concern. Consumers listed a number of other factors, most notably: political stability in other Arab countries, work-life balance, high fuel prices, increased utility bills, higher food prices, health, global warming, children's education or social welfare.

Although 51% expressed a desire to delay technology upgrades to ensure that they are not out of the budget, others plan to take action now and in the future, to reduce expenses, including reducing the expenses of holidays or short holidays, and reduce recreational activities outside the home, and postpone the replacement Main household items, try to rationalize gas and electricity consumption, switch to cheap grocery brands, reduce spending on new clothes and phone, reduce annual holiday and leisure activities at home, reduce demand for junk food, and look for applause The best in terms of home loans, insurance, credit cards, minimized car use and smoking.

The study also identifies aspects of spending excess money on basic needs in 18 activities, including outdoor entertainment, new clothes, new technology products, home renovations, vacations, debt and credit card payments, and savings (traditional or Islamic banking, insurance or Transfer abroad), invest in stocks or pension funds, invest in real estate (Dubai, UAE or abroad), and buy cars.

Optimism

Mohammed Ali Rashid Lootah, Executive Director of the Commercial Control and Consumer Protection Sector in Dubai Economy, said: “The second quarter consumer confidence index shows the prevailing optimism among the different segments of consumers, and we believe that this is due to the recent decisions and initiatives launched by the wise government in order to establish confidence in various Sectors. This report is an important tool for formulating proactive solutions and meeting challenges, ensuring sustainable growth in the national economy. ”

“These studies and indicators contribute to an understanding of consumer needs. The Consumer Confidence Index is an effective tool for monitoring consumer reactions to economic data, which plays a crucial role in determining consumption patterns in the emirate and reveals future trends in various aspects, so that major traders, investors and business owners can benefit from them in decision-making, to reach all segments. And thus sustain trade and retail movement across Dubai and the UAE in general. ”

86%

Resident consumers are optimistic, regarding the development of personal physical conditions.

88%

Citizens are optimistic about personal material conditions in the next 12 months.