UAE Business: Inflation forces UAE consumers to ‘cut discretionary spending’ – Gulf Digital News

UAE Business: Inflation forces UAE consumers to ‘cut discretionary spending’ – Gulf Digital News

As global inflation soars, consumers in the UAE plan to adjust their lifestyle by reducing their household and miscellaneous expenses over the next three months, according to a survey.

Conducted on 880 respondents in the UAE by Dubai- based consultancy Insight Discovery, on behalf of the global life assurance company Friends Provident International (FPI), a business regulated by the Central Bank UAE, the survey found that the top two areas for cutbacks are clothes/apparels and fuel.

Other areas likely to see major reductions are eating out, weekend activities and luxury spending.

Spending on holidays

Not all bad news as most consumers will continue to spend money on holidays, new cars, mobile/ broadband/ TV / OTT subscriptions, beauty/ grooming products, gym membership, home furniture and electronics.

Asked which areas they will reduce their spending over next three months in view of the rising prices, 26% of those polled cited clothes as the top area to make the reductions. The next highest-ranking issue, named by 15% of respondents, were petrol expenses. A further 9% of residents believe weekend activities, dining out and luxury products as the top three areas to make cutbacks in the next three months.

In terms of gender, women (31%) as opposed to just 24%