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Consumer confidence in Dubai hits 10-year high

Dubai - Among those confident of finding a job, 81 per cent fall in the 40-49 age group.

Consumer confidence in Dubai zoomed to its highest level in 10 years in the second quarter of 2021, underscoring the growing momentum of the emirate’s broader economic recovery on the back of buoyancy in tourism and real estate sectors as the vaccination drive made remarkable headway.

The second quarter saw consumer optimism in Dubai surging to 151 points, the highest level since 2011, from the 125 points recorded in the same 2020 period and 145 points in Q1 2021, according to the quarterly Consumer Confidence Index of Dubai Economy.

“The latest Consumer Confidence Index, which shows remarkable improvements in consumer perceptions in Dubai during the second quarter of this year, reflects the growing momentum of broader economic recovery,” said Mohammed Ali Rashid Lootah, CEO of the Commercial Compliance & Consumer Protection Sector atin Dubai Economy.

“For example, 75 per cent of consumers were positive on jobs, compared to 32 per cent in the same period in 2020. Besides, 91 per cent of consumers were also optimistic about finding a job in the next 12 months, compared to 75 per cent in the same period last year.

Among those confident of finding a job, 81 per cent fall in the 40-49 age group,” Lootah said.

Consumers were also positive about their current personal financial conditions as 81 per cent of them expressed confidence, compared to 57 per cent in the same period in 2020. Those looking forward to improvements in their personal finance over the next 12 months constituted 85 per cent in Q1 2021, compared to 73 per cent in Q1 2020. Consumers in the 50-59 age group make up 88 per cent of those optimistic of an improvement in their personal finance, Dubai Economy said in a statement.

Along with the soaring consumer confidence, Dubai has been recording a resounding jump in investor trust in the wake of a wave of reforms and stimulus measures rolled out during the pandemic. A 44.2 per cent foreign direct investment surge to Dh73 billion in 2020 year-on-year, is a testimony to the UAE’s growing appeal to global investors.

The recovery seen in tourism and commercial traffic as well as an increase in advertisements appeared to be the factors driving positive perceptions on the economy.

issacjohn@khaleejtimes.com