Dubai’s consumer confidence index reached its highest level since 2011 in the second quarter as the emirate’s economy continues to recover from the coronavirus pandemic on the back of stimulus measures and an accelerated vaccine campaign.
Consumer confidence rose to 151 points in the second quarter of 2021, up from 125 points recorded in the same period last year, Dubai Media Office said on Tuesday, citing the Department of Economic Development's latest Consumer Confidence Index report.
“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,” Mohammed Lootah, chief executive of the department's commercial compliance and consumer protection sector, said.
Seventy-five per cent of consumers were positive about the jobs market, compared to 32 per cent in the same period in 2020, according to the department, which is also known as Dubai Economy. Ninety one per cent of consumers also said they would be optimistic about finding a job in the next 12 months, compared to 75 per cent in the same period last year.
Dubai, the commercial and trading hub of the Middle East, has witnessed a recovery in key economic sectors such as tourism and real estate over the past few months following the hit to the global economy caused by Covid-19.
The Dubai government has unveiled stimulus packages worth Dh7.1 billion ($1.93bn) since the outbreak of Covid-19 to support the economy, businesses and people. The emirate's economy is expected to grow 4 per cent this year, according to government projections released in December.
Dubai Economy’s consumer confidence index also indicated 81 per cent of consumers were positive about their current financial position, compared to 57 per cent in the same period last year.
Eighty four per cent of consumers had a positive overall perception of the economy in the second quarter of 2021, compared to 77 per cent in the same period last year.
“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,” Dubai Economy said.
Eighty eight per cent of consumers feel that the time is right to buy the things they want or need, compared to 51 per cent in the same period last year. Women constitute 93 per cent of consumers planning new purchases.
The index is conducted quarterly to gauge consumers’ spending habits and their perceptions about the economy, personal finances and job opportunities.
The data collected is used to develop policies to guide the private sector to estimate demand. The department did not provide details on the number of people polled.