By Staff Reporter
With living costs on the rise, UAE residents are changing their money habits, planning to increase savings and reduce spending over the next 12 months. Consumers are aiming to save more through different ways including shopping with store credit, using loyalty cards, and buying second-hand items.
According to Euromonitor’s latest survey on consumer spending, more than 7 out of 10 – 72 per cent – UAE consumers say they feel that the cost of everyday items is going up. Of those who agreed with this statement, 31 per cent said they buy more items or shop more often at stores or websites where they have a loyalty card/membership or a store credit card.
“While affordability is particularly important to consumers in the UAE, additional factors are also considered before making a purchase. For example, product quality remains a priority trait, with 32 per cent of respondents saying they would rather buy fewer, but higher quality things. Brand loyalty also remains relevant, as 34 per cent said they regularly seek strong/well-known brands,” said Jana Rude, senior insights manager for consumers at Euromonitor International.
The UAE is one of the world’s richest countries in terms of per capita income. Therefore, the residents enjoy high disposable income.
As reported by Khaleej Times earlier, a survey by global HR solutions firm Adecco found that nearly 7 out of 10 – 67 per cent – of UAE employees are looking to switch their jobs amidst rising cost of living.
Dubai’s ranking in the cost of living index rose from 138th at the beginning of 2024 to 70th at the end of the first half of 2024. Similarly, Abu Dhabi’s rank also rose from 164th to 75th in the index during the January-June period, according to global database provider Numbeo. Mercer recently reported a rise in Dubai’s ranking among costlier cities.
The Euromonitor International Voice of the Consumer Lifestyles Survey 2024 found that 57 per cent of consumers, including 60 per cent of Gen Z, are expected to increase their savings over the next 12 months while 20 per cent are expected to decrease their spending on overall purchases of products and services over the same period. Baby boomers and Gen Z are most likely to fix instead of replacing broken items, with 64 per cent of them willing to buy used or second-hand items.
Pressured by rising prices for food, energy, fuel and other products, consumers are looking for ways to better manage their household spending, with cost-cutting a key priority. Around 34 per cent of respondents, including 33 per cent of baby boomers, said they like to find bargains.
However, the study found that millennials feel the strongest about the importance of spending money on experiences with 96 per cent looking for personalised and tailored shopping experiences, according to Euromonitor’s Voice of the Consumer Lifestyles Survey 2024.
Nearly 86 per cent of respondents, including 88 per cent of Gen X donate used items to a charity or non-profit at least once on an annual basis. This generation is also willing to spend their money instead of saving.
Gen X is seeking personalised shopping experiences with 46 per cent saying they enjoy spending their money, and 74 per cent said they want products and services that are uniquely tailored to them.
While there is an increased focus on saving, the Euromonitor International Voice of the Consumer Lifestyles Survey 2024 study found that consumers in UAE prioritise spending on education, with nearly half of them planning to increase over the next 12 months.
It showed that 49 per cent of respondents, including 44 per cent of Gen Z, are expected to increase their education spending over the next 12 months. Among these consumers, 44 per cent said they expect to study or train to advance their current career.
Research showed that 48 per cent of consumers are also aiming to increase spending on health and wellness, 45 per cent on groceries and 44 per cent on new technology.
Source: Khaleej Times
