Three quarters of Dubai consumers confident about job prospects in 2020

Quarterly survey also found the majority of residents are optimistic about their personal finances

The recent update to the Dubai SME guarantee scheme also allows businesses eligible for financing to get a three-months payment holiday. Bloomberg Dubai's economy is projected to expand 3.2 per cent in 2020 on the back of a series of economic stimulus measures that have boosted tourism, financial services and real estate, among other sectors. BloombergShow less

The majority of Dubai consumers are optimistic about job prospects and their personal finances in 2020, as the economy is expected to rebound this year, a quarterly survey from Dubai Economy found.

Three quarters of respondents are confident their employment situation will improve during the next 12 months and 79 per cent were also upbeat about their personal finances, according to the survey, conducted during the fourth quarter of 2019.

Although the Consumer Confidence Index — which measures current views and future outlook — showed a slight decrease to 133 points from 137 in the third quarter, 63 per cent have a highly positive view of the current economic situation in Dubai.

“Economic observers and analysts are expecting a renewed wave of growth locally and nationally,” said Mohammed Ali Rashed Lootah, chief executive of the commercial compliance and consumer protection sector in Dubai Economy. “In addition, the efforts and co-ordination of all government entities to develop plans and proactive solutions to various forms of challenges help cement Dubai's position among the best global investment destinations.”

Dubai's economy is projected to expand 3.2 per cent in 2020, according to a December statement from the emirate's Crown Prince Sheikh Hamdan Bin Mohammed, on the back of a series of economic stimulus measures that have boosted tourism, financial services and real estate.

Positive perceptions about the economy were largely due to trade momentum and tourism recovery in the emirate, according to the DED survey. Meanwhile, insufficient employment opportunities and a lack of salary increases were among the main reasons for negative perceptions.

The Q4 2019 survey showed 77 per cent of Emiratis and 57 per cent of expatriates are optimistic about finding a job now. As for the chances of finding a job during the next 12 months, 84 per cent of Emiratis and 71 per cent of expatriate residents were positive.

When it comes to personal finances, 76 per cent of Dubai consumers rated their current situation as “excellent” or “good” — with the rate higher among Emiratis at 81 per cent. Meanwhile, 83 per cent of Emiratis and 76 per cent of expatriates are optimistic about their finances over the next 12 months.

When asked about the affordability of items consumers need and want to buy, 79 per cent of Emiratis and 76 per cent of expatriates said prices were “excellent” or “good”.

Most consumers (86 per cent) said they are able to meet basic life expenses and almost a third said they spend any leftover money on holidays or save it. Nearly half of consumers said they plan to cut down on entertainment spend and delay technology upgrades, such as personal computers and mobile phones.