UAE consumer spending power remains strong despite concerns over global economy

UAE consumer spending power remains strong despite concerns over global economy

UAE consumer spending power remains strong despite concerns about the global macro-economic environment. This is according to research by leading management consulting firm, Kearney, exploring consumer sentiment and purchasing habits.

88% of those surveyed highlighted concerns about global market volatility and rising inflation, and 83% noted an increase in the prices of goods purchased over the last three months.

Price increases were felt most in food and beverage (85%), transport including gas prices (77%), restaurants and hotels (72%), clothing and footwear (70%) and electronics (68%). However, despite concerns and noticeable price hikes, consumers do not expect their spending to be impacted with over half (56%) planning on making a major household purchase (Dh1,000+) in the next six months.

“Overall, the country's strong economic foundation and continued favourable policy changes towards business and individuals have given consumers confidence in their purchasing power, regardless of the macro-economic environment.

UAE residents, in fact, have reported an increase in spending on non-essential items compared to 2021 (16%) reinforcing this, and we anticipate that this trend will continue into the new year,” commented Debashish Mukherjee, Partner, Kearney Middle East.

Online purchasing remains a popular channel for UAE shoppers, mainly due to the ease of purchase (66%), saving money (62%), variety