Dubai’s Consumer Confidence Index during the last quarter of 2020 reached its highest level in more than three years.
According to Dubai Economy, the Q4 2020 Index of 142 points was way above the 133 points in the same period last year.
The positive sentiment was mainly due to expected improvements in personal finances and general economic conditions in 2021.
"During the last quarter of 2020 as many as 82% consumers were positive on the state of their personal finances over the next 12 months, compared to 79% in the same period last year, and optimism was particularly high among 84% of UAE citizens," said Mohammed Ali Rashed Lootah, CEO of the Commercial Compliance & Consumer Protection Sector at Dubai Economy.
Eighty-five percent consumers are also looking forward to new job opportunities over the next 12 months, while 74 per cent feel the time is right to buy the things they need.
Among those consumers who expect to have money left after basic expenses, 43 per cent said they would spend the balance on vacations, while 36 per cent plan to save it for the future.
Reducing outdoor entertainment to balance expenses and income is part of the plan for 54 per cent of consumers, while 53 per cent intend to cut down on buying new clothes, 48 per cent would delay technology upgrades, and 39 per cent would reduce ordering food from outside.
The Index, which captures a consumer's perceptions on the economy as well as intentions and expectations of buying and saving, will help in developing policies related to consumer protection.
It will also enable the private sector to estimate demand and develop their marketing strategies accordingly.
.@Dubai_DED: Dubai saw its Consumer Confidence Index during the last quarter of 2020 rising to the highest level since Q3 of 2017. The Q4 2020 Index of 142 points was way above the 133 points in the same period last year & 132 points recorded in Q3 2020.https://t.co/5nS0PJyA2x pic.twitter.com/7V0CqorhFy— Dubai Media Office (@DXBMediaOffice) January 19, 2021