Despite inflation concerns, Saudi and UAE consumer spending power remains high: Poll

Despite inflation concerns, Saudi and UAE consumer spending power remains high: Poll

Consumers in Saudi Arabia and the United Arab Emirates are concerned about rising inflation and global market volatility, but their spending power remains stronggoing into 2023, a survey found.

For all the latest headlines follow our Google News channel online or via the app.

The survey, conducted by Kearney Middle East, found that 80 percent of Saudi residents and 90 percent of UAE residents were concerned about these macro-economic challenges. While price increases have been noted across most retail categories, 16 percent of UAE consumers and 11 percent of Saudi consumers reported an increase in spending since 2021.

Despite concerns, the consumers’ spending power is not expected to decline over the next six months, the management consulting firm revealed in its findings on Tuesday.

“The Kingdom’s progress over the past five years has contributed greatly in further strengthening its economic foundations. Businesses and individuals have benefitted from favorable policy changes which have given consumers’ confidence in their purchasing power, regardless of the macroeconomic environment,” Debashish Mukherjee, Partner, Kearney Middle East, said in a statement on Tuesday.

“In fact, spending on non-essential items in KSA has increased compared to 2021 reinforcing this, and we anticipate that this trend will continue into the new year,” he added.

Online