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Consumer confidence in Dubai moved to to its highest level in 10 years during the third quarter of 2021, the Consumer Confidence Index tracked by Dubai Economy showed. During July-August 2021 the Index rose two points from the previous quarter and 21 points compared to the same quarter of 2020.
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% of consumers were positive about current job prospects, compared to 46% in the same quarter of the previous year. A higher share of consumers (88%) were optimistic about job prospects in the next 12 months, compared to %77 in Q3 2020. Europeans and Americans were the most optimistic (88%) on current job prospects while Emiratis were the most optimistic (93%) on job prospects in the next 12 months.
Mohammed Ali Rashed Lootah, CEO of the Commercial Compliance & Consumer Protection Sector in Dubai Economy, said: ”The latest Consumer Confidence Index reflects an unprecedented level of positive sentiment towards the state of 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% consumers believing that their current personal finances are good compared to 72% in the same period of last year.”
Lootah added that 82% 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% from 57% during the same period last year. Meanwhile, the third quarter Consumer Confidence Index also indicates positive sentiment prevailing among 85% on the state of economy for the next 12 months, compared to 72% in the same quarter of 2020.”
The study shows that 82% of Emiratis and 81% business owners from different nationalities believe that the current state of economy is good, while 95% of public sector employees and 87% of males who participated in the study believe that the state of 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% of consumers plan to spend their spare cash on vacations, 36% of them on outdoor entertainment, and 33%, on new clothes. The Index also showed that 51% consumers are likely to spend less on buying new clothes, while 39% plan to cut down on short and 38% on outdoor entertainment as measures to stay within budget.
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