More money, happier times: Dubai bullish

For a salaried person, there’s no better news than an upward push in their personal incomes. With each small increment comes a whole set of unfulfilled wishes waiting to materialise – it could be a down payment of a house, a car, a family vacation or just giving the confidence to put the kids in a better school.

This is the predicament of most Dubai residents as the majority is here to make a better life and they are optimistic that the months ahead may help them fulfil some of their material dreams.

According to the latest quarterly consumer confidence survey conducted by the Department of Economic Development (DED) in Dubai, most of the residents of the city see their personal financial situation improving and expect brighter job prospects on the road ahead.

Overall, the Consumer Confidence Index increased by four points during the first quarter of 2014 to reach 143 points, after having been on a steady upswing seen in recent years.

Ninety-two per cent of the consumers are optimistic of the job situation and 91 per cent are hopeful of their personal finance over the next 12 months.

And, this renewed personal confidence is based on the fact that residents believe that the city is doing exceptionally well.

“The state of economy in Dubai was also rated as good or excellent by 91 per cent of the survey respondents with increase in rental/property prices and the tourism boom chiefly driving positive perceptions. Consumers who believe that the state of economy will improve in the next 12 months have increased to 95 per cent from 93 percent recorded in the final quarter of 2013,” the index stated.

Consumer perception on the current job scenario shows an improvement in Q1 2014 as 79 per cent rated job prospects as excellent/good compared to 75 per cent in Q4 2013.

The percentage of consumers who see better job prospects in the next 12 months remained consistent at 92 per cent with 37 per cent seeing excellent prospects and 55 per cent rating them ‘good.’

Among locals almost 21 per cent rate current job prospects as excellent while 12 per cent of the expatriates have similar sentiments. Locals also have a more positive view on the current state of personal finance compared to expatriates. Consumers who see current state of personal finance as ‘excellent’ have increased to 81 per cent during Q1 2014 from 77 per cent in Q4 2013.

And with growing confidence in personal finance, residents are looking to spend and even save more. The DED survey shows that around half of the respondents plan to spend their spare cash into holidays or savings and 38 per cent are likely to make these transactions in the next 12 months.

Nearly two-third of the consumers feel it is good time to buy thing they need or want and the percentage of such consumers increased during 77 in Q1 2014 from 70 in Q4 2013. Majority of the consumers (79 per cent) cover essential living expenses but lack of job opportunities and salary levels falling short of expectations are among the concerns expressed, the survey findings reveal.

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