Consumer confidence in Dubai moved to its highest level in 10 years during the third quarter of 2021, the Consumer Confidence Index tracked by Dubai Economy showed.
During the quarter the Index rose two points from the previous quarter and 21 points compared to the same quarter of 2020, reported Emirates News Agency WAM.
The quarterly Consumer Confidence Index measures current and future sentiment of consumers towards the state of economy, job prospects locally, personal finances and consumers’ perception on whether it’s a good time to buy things they need or want.
The Q3 2021 Index showed that 73 percent of consumers were positive about current job prospects, compared to 46 percent in the same quarter of the previous year. A higher share of consumers (88 percent) was optimistic about job prospects in the next 12 months, compared to 77 percent in Q3 2020. Europeans and Americans were the most optimistic (80 percent) on current job prospects while Emiratis were the most optimistic (93 percent) on job prospects in the next 12 months.
Mohammed Ali Rashed Lootah, CEO of the Commercial Compliance and Consumer Protection Sector at Dubai Economy, said: "The latest Consumer Confidence Index reflects an unprecedented level of positive sentiment towards the state of the economy and how Dubai successfully overcame the global economic challenges related to COVID-19 by reactivating the economic activity. A clear proof of this optimism is 86 percent consumers believing that their current personal finances are good compared to 72 percent in the same period of last year."
Lootah added that 82 percent of consumers considering it a good time to buy things they want or need augur well for consumer spending and economic growth locally.
"The share of consumers who were positive about the state of economy during the third quarter of this year have grown to 78 percent from 57 percent during the same period last year. Meanwhile, the third quarter Consumer Confidence Index also indicates positive sentiment prevailing among 85 percent on the state of economy for the next 12 months, compared to 72 percent in the same quarter of 2020," he added.
The study shows that 82 percent of Emiratis and 81 percent business owners from different nationalities believe that the current state of the economy is good, while 95 percent of public sector employees and 87 percent of males who participated in the study believe that the state of the economy in the next 12 months will be good. "Increase in tourism, growth in business, and rise in promotional campaigns are the main factors driving positive sentiment in Dubai," Lootah said.
The Index showed that 44 percent of consumers plan to spend their spare cash on vacations, 36 percent of them on outdoor entertainment, and 33 percent on new clothes. The Index also showed that 51 percent consumers are likely to spend less on buying new clothes, while 39 percent plan to cut down on short holidays and 38 percent on outdoor entertainment as measures to stay within budget.