As living expenses continue to climb, residents of the UAE are altering their financial behaviors, with intentions to bolster savings and curtail expenditures within the next year. Consumers are adopting various strategies to enhance savings, such as utilizing store credit, loyalty cards, and purchasing pre-owned goods. A recent survey by Euromonitor reveals that 72 percent of UAE consumers perceive an increase in the cost of daily necessities. Among those who concurred, 31 percent reported increasing their purchases or shopping frequency at establishments where they hold a loyalty card or store credit card.
Despite the UAE's status as one of the wealthiest nations globally in terms of per capita income, affording daily items remains a concern for many. Additional considerations such as product quality and brand reputation play significant roles in purchasing decisions. According to Jana Rude, Senior Insights Manager at Euromonitor International, 32 percent of respondents prefer to invest in fewer but superior quality items, while 34 percent consistently opt for well-established brands.
The rising cost of living has also influenced job preferences, with a survey by Adecco indicating that 67 percent of UAE employees are considering job changes. Dubai and Abu Dhabi have seen their rankings in the global cost of living index surge, reflecting increased living costs. Euromonitor's 2024 survey highlights a trend towards increased savings and reduced spending, with 57 percent of consumers, including 60 percent of Gen Z, planning to save more, and 20 percent intending to decrease overall spending.
Consumers are actively seeking methods to manage household expenses more effectively, with a focus on cost reduction. The survey reveals that 34 percent of respondents, including 33 percent of baby boomers, actively seek out bargains. Millennials, however, place a high value on spending for experiences, with 96 percent desiring personalized shopping experiences. Additionally, 86 percent of respondents, including 88 percent of Gen X, donate used items to charity annually, indicating a willingness to spend rather than save.
Despite the emphasis on saving, education remains a priority for UAE consumers, with nearly half planning to increase educational spending in the next year. Health and wellness, groceries, and new technology are also areas where consumers aim to increase spending, according to the survey findings.
