As efforts by the government to accelerate economic activity led to significant outcomes consumers in Dubai remain confident of their personal finances and job prospects in the coming months, showed the quarterly consumer confidence survey of Dubai Economy. The Consumer Confidence Index (CCI) score in Dubai for the July-August-September 2019 period was at 137, indicating a high level of optimism and brighter outlook.

The quarterly consumer confidence survey is part of providing businesses and investors with a reference on the overall consumer sentiment by analysing data on the dimensions of economic activity critical to competitive and sustainable business growth in Dubai and the UAE.

The survey showed that 84% of Emaratis were optimistic about jobs in the third quarter while among expatriates, 13% saw the situation as “excellent” and 56% termed it “good.” Job prospects for the next 12 months were “excellent” for 52% Emaratis and 32% expats, and 43% of the expats termed them “good.” In general, the chances of finding a job were “excellent” for 38%, and “good” for 42%, matching perceptions shared in Q2 2019.

Mohammed Ali Rashed Lootah, CEO of the Commercial Compliance & Consumer Protection (CCCP) sector, commented that the Q3 survey reveals positive consumer sentiment among Emaratis and expatriates in Dubai.  “Certainly, there are factors that will boost optimism in the coming months, including the steps taken by the government to reassure people, ensure happiness among all segments of the society, and accelerate economic growth as directed by His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of UAE and Ruler of Dubai.”

Lootah added that the consumer confidence survey reflects the eagerness of Dubai Economy to promote trust and transparency as well as help all stakeholders in the emirate’s sustainable economic growth to make informed decisions and overcome challenges. “One of the most important facts revealed by the survey is that over 80% of consumers are optimistic about the employment situation improving in the next 12 months.”

Though consumer perceptions on the overall economic situation showed a marginal decline 77% of the respondents in the survey were positive on their current personal financial situation and the percentage rises to 78% for the next 12 months. As part of keeping a close watch on their budget, 56% of consumers plan to delay technology upgrades, including spending on expensive mobile phones and gadgets.

The confidence in personal finance is particularly higher among expatriates with 14% saying it as “excellent” and 63% calling it “good.” Overall, the percentage of consumers who see their current personal finances as “excellent/good” decreased slightly compared to the previous quarter. Over the next twelve months 84% of Emaratis see their personal finances improving and 37% particularly look forward to an “excellent” progress. Among expatriates, 30% look forward to “excellent” personal finances in the next one year while 47% see them as “good.”

For 79% of Emaratis it is an “excellent/good” time to buy the things they need or want to buy, while expatriates who expressed similar opinion were 69%. Overall, 15% said the time was “excellent” while 57% described it as “good” and their combined strength of 72%, compared to 78% in the previous quarter.

The recovery in the tourism and trade sectors, growth in spending on advertising and increasing traffic traffic have given positive signals to consumers in general and it is reflected on their perception on the general economic situation in Dubai. Emaratis appear to be more optimistic with 32% terming the overall situation as “excellent” compared to 12 per cent expatriates. A higher percentage (53%) of Emaratis rate the situation as “good” compared to 47% of expatriates. Overall, 67% of the survey respondents exuded optimism and their combined strength, less one percentage point compared to the previous quarter.

Insufficient work opportunities and no salary increase were among the main reasons for the negative perception on economy seen in the survey.  However, 77% of consumers estimate that the situation would turn to “excellent/good” in the next 12 months.

Job security was the main concern in Q3 2019 followed by work/life balance as well as increase in utility bills and the rising cost of fuel, education, healthcare, and food items.

A majority of consumers (83%) said they can cover basic life expenses at present, while a third of consumers said they have enough savings to spend on holidays and 34% plan to spend on entertainment, new clothes, new technology products, home renovations and vacations in the next 12 months. Delaying technology upgrades, trimming holiday budgets and reducing recreational activities are some of the measures planned by families to cut costs.