The second quarter of 2021 saw consumer optimism in Dubai rising to its highest level since 2011, according to the quarterly Consumer Confidence Index of Dubai Economy. Consumer confidence rose to 151 points in Q2 2021, a marked increase from the 125 points recorded in the same period last year and the 145 points in Q1 2021.
Mohammed Ali Rashid Lootah, CEO of the Commercial Compliance & Consumer Protection (CCCP) Sector in Dubai Economy, said: “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. For example, 75% of consumers were positive on jobs, compared to 32% in the same period in 2020. Besides, 91% of consumers were also optimistic of finding a job in the next 12 months, compared to 75% in the same period last year. Among those confident of finding a job, 81% fall in the 40-49 age group.”
Consumers were also positive on their current personal financial conditions as 81% of them expressed confidence, compared to 57% in the same period in 2020. Those looking forward to improvements in their personal finance over the next 12 months constituted 85% in Q1 2021, compared to 73% in Q1 2020. Consumers in the 50-59 age group make up 88% of those optimistic of an improvement in their personal finance.
The Index showed that 84% of the consumers had a positive perception on the overall economy in Q2 2021, compared to 77% in the same period last year. The recovery seen in tourism and commercial traffic as well as increase in advertisements appeared to be the factors driving positive perceptions on the economy. 88% of consumers feel that the time is right to buy the things they need and want to buy, compared to 51% in the same period in 2020. Women constitute 93% of consumers planning new purchases. The Index also showed that 49% of consumers will spend money left after meeting basic needs on vacations while 38% will spend it on outdoor entertainment and buying new clothes while 33% will save any excess money.
The Consumer Confidence Index, launched in 2011, captures a consumer’s perceptions on the overall economy, personal finance and job opportunities as well as intentions and expectations of buying and saving. The study helps in developing policies related to consumer protection, in addition to enabling the private sector to estimate demand and develop their marketing strategies accordingly.
On another note, Dubai Economy urged consumers to report any violation of precautionary guidelines against COVID-19 either through the Dubai Consumer App available on Apple, Google and Huawei stores, by calling 600545555 or on the Consumerrights.ae website.
Meanwhile, according to a new survey conducted by Backbase with YouGov in the UAE, consumer appetite for digital banking services continues to grow in the country, accelerated further by the COVID-19 pandemic.
Eighty-nine percent of respondents to the survey said that they are now more likely to opt for digital banking services rather than make a physical visit to a bank branch, with consumers saying they prefer digital self-service banking solutions delivered with the same convenience as their ecommerce, entertainment, and transport solutions.
Movement restrictions or closures of bank branches in the early days of the pandemic forced consumers online, and banks responded by rapidly shifting products and services to digital platforms. The research showed that 72% of respondents say that they use digital banking services at least once a week, and 24% uses services once a day or more.
The sudden increase in digital adoption has dramatically advanced the digital transformation agendas for many banks in the region, with banking leaders recognizing online banking services as becoming critical to increasing customer retention and growing revenue streams through personalized services. Consumer expectations from digital banking has shifted from just day-to-day banking services and transactions, to also include more complex interactions, such as remote account openings or subscriptions to new products or services such as getting a loan or subscribing to insurance. However, 31% of respondents say that their bank is weak when it comes to offering seamless access to online banking services, highlighting an area where banks need to step up their performance.
Attached to this email is the press release with additional information included and an infographic with the summary of the key findings. Look forward to your thoughts on this and if you would like to speak with a spokesperson from Backbase for some additional information, happy to arrange for that to.
