Consumer confidence in Dubai moved to its highest level in 10 years during the third quarter of 2021.
That's according to Dubai Economy's quarterly index that tracks current and future sentiment of consumers towards the state of economy, job prospects locally, personal finances and perception on whether it’s a good time to buy things they need or want.
During July-August 2021 the Index rose two points from the previous quarter and 21 points compared to the same quarter of 2020.
The Q3 2021 Index showed that 73 per cent of consumers were positive about current job prospects (compared to 46 per cent in Q3 2020).
A higher share (88%) were optimistic about job prospects in the next 12 months, compared to 77 per cent in Q3 2020.
Europeans and Americans were the most optimistic (88%) on current job prospects while Emiratis were the most optimistic (93%) on job prospects in the next 12 months.
"The latest Consumer Confidence Index reflects an unprecedented level of positive sentiment towards the state of economy and how Dubai successfully overcame the global economic challenges related to COVID-19 by reactivating the economic activity," said Mohammed Ali Rashed Lootah, CEO of the Commercial Compliance & Consumer Protection Sector at Dubai Economy.
"A clear proof of this optimism is 86% consumers believing that their current personal finances are good compared to 72% in the same period of last year," he added.
Meanwhile, 82 per cent of consumers consider it a good time to buy things they want or need, which augurs well for consumer spending and economic growth locally.
An increase in tourism, growth in business, and rise in promotional campaigns are the main factors driving positive sentiment n Dubai.
The Index showed that 44 per cent of consumers plan to spend their spare cash on vacations, 36 per cent of them on outdoor entertainment, and 33 per cent on new clothes.