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UAE consumer confidence bounces back in Q4

DUBAI, January 15, 2019

Consumer confidence in the UAE rebounded in the fourth quarter of 2018, as residents absorbed the impact of VAT and high expenses incurred over the summer, said a report from yallacompare, a leading comparison site for financial products.

During the fourth quarter (Q4) of 2018, yallacompare’s Consumer Confidence Tracker Q4 2018 revealed a 54 per cent increase in those saying they feel more confident about their finances than 12 months ago (22 per cent of respondents feel more confident in Q4 versus 14 per cent in Q3). The proportion saying they feel less confident has dropped 22 per cent since the previous survey, from 53 per cent in Q3 to 41 per cent in Q4.

Moreover, the Q4 Tracker recorded a 21 per cent decline in the number of UAE residents worried about the increased cost of living in the UAE. Whereas 51 per cent declared themselves worried in Q3, 40 per cent said the same in Q4. Correspondingly, whereas just 44 per cent said they would be able to get by financially in Q3, 52 per cent said the same in Q4.

The Q4 Tracker also shows that UAE residents now feel better able to cope with the impact of value-added tax (VAT) on inflation. In Q3, 27 per cent were struggling to make ends meet because of VAT. In Q4, just 16 per cent said the same, a decline of 40 per cent.

“It’s great to see confidence rebounding and returning to, or even exceeding, the levels we saw at the start of 2018,” said Jonathan Rawling, CFO of yallacompare. “With summer holidays to be paid off and school fees due, we know that Q3 heightens consumers’ concerns over their finances. The survey results suggest that with the impact of VAT now being absorbed and people feeling hopeful about a more likely salary increase, confidence is returning.” – TradeArabia News Service




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