News
Rise in personal incomes boosts consumer spending
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A surge in personal incomes has allied with other factors to boost consumer spending in Abu Dhabi and turn the emirate into one of the world's largest per capita spenders.
The average monthly family consumer spending in the emirate grew by around eight per cent between 1997 and 2007 but income leaped by nearly 53 per cent, said Abu Baker Al Amoudi, Director of the Statistics Section at the Abu Dhabi Department of Planning and Economy (DPE).
From Dh24,377 a month in 1997, the average family consumer spending increased to nearly Dh26,353 a month in 2007, he said.
But the average monthly income jumped from around Dh30,000 to Dh46,000 during the same period, he said.
"It is clear the surge in income is the main factor along with other reasons for the increase in consumer spending in the emirate and the change in the life style of many families," he told Abu Dhabi Television.
Amoudi did not mention other factors but DPE and economists have cited soaring inflation in the UAE and easy bank loans.
In a report this week, DPE proposed tightened rules on personal loans by banks to stem soaring consumer spending, which it said had jumped by 122 per cent since 2002 from about Dh144 billion to Dh320bn last year, recording higher increases than economic growth during that period.
It cited Central Bank statistics showing personal loans had risen during the first quarter of this year to Dhs.48.4bn compared to Dh43.5bn by last year-end, recording 11 per cent rise during the first quarter.
In its annual report for 2006, the Arab League said the UAE was far ahead of other Arab states in terms of private consumption, which covers spending by individuals and families on consumer products and services.
In 2006, the UAE's private consumption totalled around $83.985bn or an annual average $19,761 per individual for a population of 4.25 million.
The level was far higher than spending in other Arab countries, where it stood at around $10.07bn or an average $12,500 per person in Qatar. Kuwait ranked third, with its private consumption totalling around $27.8bn or an individual average of nearly $9,266. Bahrain emerged as the fourth largest spender despite its relatively small oil wealth, with private consumption standing at around $5.6bn or an average $7,587 per person.
The report gave no figures on the UAE during 2007 but experts believe private consumption rose by at least 10 per cent due to higher salaries and inflation, mainly rise in rents and food prices.
A recent study by the Abu Dhabi Chamber of Commerce and Industry showed rents drained at least a-third of the family spending in the UAE during 2000-2005.
It gave no estimates for the following years but higher rents are expected to have pushed up that ratio.
The average monthly family consumer spending in the emirate grew by around eight per cent between 1997 and 2007 but income leaped by nearly 53 per cent, said Abu Baker Al Amoudi, Director of the Statistics Section at the Abu Dhabi Department of Planning and Economy (DPE).
From Dh24,377 a month in 1997, the average family consumer spending increased to nearly Dh26,353 a month in 2007, he said.
But the average monthly income jumped from around Dh30,000 to Dh46,000 during the same period, he said.
"It is clear the surge in income is the main factor along with other reasons for the increase in consumer spending in the emirate and the change in the life style of many families," he told Abu Dhabi Television.
Amoudi did not mention other factors but DPE and economists have cited soaring inflation in the UAE and easy bank loans.
In a report this week, DPE proposed tightened rules on personal loans by banks to stem soaring consumer spending, which it said had jumped by 122 per cent since 2002 from about Dh144 billion to Dh320bn last year, recording higher increases than economic growth during that period.
It cited Central Bank statistics showing personal loans had risen during the first quarter of this year to Dhs.48.4bn compared to Dh43.5bn by last year-end, recording 11 per cent rise during the first quarter.
In its annual report for 2006, the Arab League said the UAE was far ahead of other Arab states in terms of private consumption, which covers spending by individuals and families on consumer products and services.
In 2006, the UAE's private consumption totalled around $83.985bn or an annual average $19,761 per individual for a population of 4.25 million.
The level was far higher than spending in other Arab countries, where it stood at around $10.07bn or an average $12,500 per person in Qatar. Kuwait ranked third, with its private consumption totalling around $27.8bn or an individual average of nearly $9,266. Bahrain emerged as the fourth largest spender despite its relatively small oil wealth, with private consumption standing at around $5.6bn or an average $7,587 per person.
The report gave no figures on the UAE during 2007 but experts believe private consumption rose by at least 10 per cent due to higher salaries and inflation, mainly rise in rents and food prices.
A recent study by the Abu Dhabi Chamber of Commerce and Industry showed rents drained at least a-third of the family spending in the UAE during 2000-2005.
It gave no estimates for the following years but higher rents are expected to have pushed up that ratio.