UAE consumer spending to exceed $261bn in 2021


August 13, 2017 | By RetailME Bureau

Consumer spending in the UAE, which amounted to nearly $183 billion in 2016, is forecast to rise at a CAGR of 7.5% over the next five years to exceed $261 billion in 2021, forecasts an analysis by the Dubai Chamber of Commerce and Industry.

Dubai Chamber’s analysis, based on recent data from Euromonitor International, revealed that consumer expenditure per household during 2016 was highest in the UAE when compared to other GCC countries, amounting to around $103,000, followed by Bahrain ($96,000).

Housing was identified as the top spending category for UAE consumers with $75.7 billion recorded for 2016, accounting for 41% of total consumer expenditure during the year. Food and non-alcoholic beverages was the second-largest category with $24.8 billion worth of spending during the same year, followed by transport ($16.7 billion).

“The UAE‘s consumer market is largely being driven by a fast-growing population with relatively high incomes, which are key economic fundamentals that support a robust long-term outlook for spending growth in the country,” says Hamad Buamim, president and CEO of Dubai Chamber.

Buamim pointed out that the UAE’s predominantly young and diverse population is attracting the interest of international brands and a growing number of e-commerce companies that are targeting tech-savvy consumers. He noted that the country’s booming tourism market continues to drive consumer spending, especially within the retail, tourism, hospitality and transport sectors.

Several new mega developments are expected to be completed over the next four years in the UAE, which should enhance and diversify the country’s mix of retail and entertainment offerings, and further capitalise on the expected growth in consumer spending, he adds.

Communication was identified in the analysis as the fastest-growing category for UAE consumer spending with a CAGR of 10.2% expected through 2021. This trend will likely be supported by the country’s high penetration of smartphones and other digital devices. The growing popularity of mobile applications, and Dubai’s adoption of smart city solutions are also expected to boost spending in this area.

Health goods and medical services was named as the second fastest-growing category for spending with an expected CAGR of 8.2% over the same period, followed by hotels and catering (CAGR of 8.1%). Education and leisure were also included among the fastest-growing categories, with projected CAGRs of 8.0% and 7.7%, respectively.

Going forward, high incomes, changing lifestyles and increased health consciousness are expected to fuel consumer demand for goods and services in family-focused spending categories, such as education, and transport as well as premium household products and services.

In addition, the analysis showed that consumer spending accounted on average for about 45% of the UAE’s GDP, compared to a 39% average for the GCC region, 45% for developing Asia, 56% for the EU and 68% for the US.

Comments

comments

Previous Article Next Article

YOU MAY ALSO LIKE /



UAE-based Al Maya Group announced that it will be boosting import of 

Continue Reading

June 24, 2021 | By RetailME Bureau

UAE-based grocery retail chain, Grandiose has opened its first hypermarket in Abu 

Continue Reading

June 2, 2021 | By RetailME Bureau

UAE-based Carrefour announced its theme and plans for Ramadan 2021. The brand 

Continue Reading

March 31, 2021 | By RetailME Bureau

Locally owned supermarket Spinneys celebrates 60 years of doing business in the 

Continue Reading

March 9, 2021 | By RetailME Bureau
Almarai, Carrefour, Emirates have the most loyal customers

UAE-based Carrefour will become the first retailer in the region to offer new levels 

Continue Reading

February 22, 2021 | By RetailME Bureau

The Organic Farmers’ Market is back in Bay Avenue for its 12th 

Continue Reading

February 17, 2021 | By RetailME Bureau

UAE-based  Lulu Group recently inaugurated its first-ever all-female staff store in Jeddah, 

Continue Reading

February 15, 2021 | By RetailME Bureau
Jones the grocer

Jones the Grocer, the gourmet grocer and cheese retailer launches the Jones 

Continue Reading

February 1, 2021 | By RetailME Bureau

UAE-based Al Maya Supermarkets is hosting a two-week food festival at select 

Continue Reading

January 17, 2021 | By Lawrence Pinto

Locally-owned supermarket Spinneys has launched its ‘Power of Plants’ initiative in the 

Continue Reading

January 17, 2021 | By RetailME Bureau
Cookit

Carrefour UAE has launched “Cookit Yourself” — a curated recipe box created 

Continue Reading

January 5, 2021 | By RetailME Bureau
Al Islami Plant-Based Burger

UAE-based Al Islami Foods, one of the largest frozen food companies in 

Continue Reading

January 3, 2021 | By RetailME Bureau




Download Images RetailME Magazine