The Banking Executive Magazine, Issue 154, October 2021

Consumer Confidence in Dubai HITS 10- YEAR HIGH Dubai’s consumer confidence index rose to its highest level in a decade during the third quarter of 2021, the Dubai Economy reported. The positive sentiment has been fu- elled by increased economic activity. Most consumers in Dubai are now feeling positive about current and job prospects. They also feel that their personal finances have improved, and they are planning to make non- essential purchases. Overall, the index rose two points in the third quarter compared to the previous three months, and 21 points compared to the same period last year. “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 eco- nomic activity,” said Mohammed Ali Rashed Lootah, CEO of the Dubai Economy’s commercial compliance and consumer protection sector. Among the consumers polled for the index, 86 percent said they believe that their current personal finances are good, up from 72 percent in the same period last year. About 73 percent of the consumers said they are positive about current job prospects, a huge jump com- pared to 46 percent who shared the same view last year. JOB PROSPECTS AND SPENDING PLANS More consumers (88 percent) agreed that they’re optimistic about employ- ment opportunities in the next 12 months, compared to 77 percent in the third quarter of last year. Asked about their spending inten- tions, 82 percent of consumers said they think it is a good time to buy the things they want. Nearly half (44 per- cent) have plans to spend their spare cash on vacations, 36 percent on outdoor entertainment and 33 per- cent on new clothes. About eight in ten (78 percent) also said they’re feeling positive about the state of the economy, compared to 57 percent who said the same thing last year. More consumers are likewise upbeat about the future, with 85 percent saying they feel positive about the state of the economy in the next 12 months. Business conditions in the UAE’s non-oil economy showed robust im- provement recently, with output and new orders rising strongly in Septem- ber 2021, according to IHS Markit. the BANKING EXECUTIVE 22 ISSUE 154 OCTOBER 2021