Consumers in the Dubai are more optimistic about the economy and job prospects compared to six other leading cities in the world – including Tokyo, Milan, Paris, New York, Bangkok and London.
A recent analysis of consumer confidence conducted by the Department of Economic Development (DED) in Dubai indicates that the emirate stood at 142 points – rising from 138 recorded during the same period last year – during the second quarter of 2016, higher compared to Tokyo, Milan, Paris, New York, Bangkok and London.
In terms of perception towards the state of economy, Dubai shines bright with 82% terming it ‘Excellent/Good’, followed by New York where 64% voiced a similar sentiment.
Dubai also stood out in terms of confidence in personal finance. For 86% consumers in Dubai and 74% in New York, the personal finance scenario was ‘Excellent/Good’ in the second quarter of this year. Paris (53%), London (50%), Milan (42%) and Bangkok (36%) followed, while Tokyo was at the bottom of the table with a ‘Not So Good/Bad’ situation revealed by 67%.
Purchase decisions also reflect the difference in confidence levels with 79% consumers in Dubai considering it a good time to buy things they need and want, while in Tokyo, 65% aren’t confident to shop.
“The Consumer Confidence Index serves as a reliable, single indicator of consumer sentiment on the economic situation. Comparing consumer perceptions on the local economy with similar indicators across other major cities enables us to evaluate how Dubai scores as a global business destination in terms of competitiveness and sustainability,” explains Mohammed Ali Rashed Lootah, CEO of the Commercial Compliance & Consumer Protection (CCCP) sector in DED.
Overall, tourist influx was seen as the main driver of positive consumer perceptions in all the seven mentioned cities – Dubai particularly where confidence in the state of economy during the second quarter of 2016 was largely driven by increase in rental/property prices.
On the other hand, job security and the state of economy are the major consumer concerns in all the seven cities. Dubai and New York led in terms of job security, with the percentage of consumers foreseeing job prospects as ‘Excellent/Good’ standing at 78 and 71, respectively. Inadequate increase in salary levels and lack of job opportunities were cited as the main drivers of negative perceptions on the current state of economy in all the seven cities.