Living costs in the UAE are steadily on the rise, prompting residents to change their money habits. As a result, consumers are making plans to increase savings and reduce spending over the next 12 months. One common strategy among residents is to save more through various methods such as shopping with store credit, using loyalty cards, and buying second-hand items. According to Euromonitor’s latest survey on consumer spending, 72 per cent of UAE consumers feel that the cost of everyday items is increasing. Among those who agreed with this statement, 31 per cent said they tend to buy more items or shop more often at stores or websites where they have a loyalty card or store credit card.
Affordability is a key concern for consumers in the UAE, and they also consider other factors before making a purchase. Product quality remains a priority, with 32 per cent of respondents preferring to buy fewer but higher quality items. Brand loyalty is also significant, with 34 per cent of consumers stating that they regularly seek strong and well-known brands. The UAE boasts high per capita income, making residents enjoy high disposable income. However, in light of the rising cost of living, nearly 67 per cent of UAE employees are considering switching jobs, as reported by a survey by global HR solutions firm Adecco.
To cope with the increasing cost of living, consumers are looking for ways to manage their household spending more effectively. Around 20 per cent of consumers are expected to decrease their spending on overall purchases of products and services over the next 12 months, while 57 per cent are planning to increase their savings. Baby boomers and Gen Z are more likely to fix broken items instead of replacing them, with 64 per cent willing to buy used or second-hand items. Millennials, on the other hand, prioritize spending money on experiences and are looking for personalized shopping experiences.
Additionally, there is a strong emphasis on giving back and charity among consumers in the UAE. Nearly 86 per cent of respondents donate used items to charities or non-profits at least once a year, with Gen X being particularly generous in this aspect. This generation also prioritizes spending on unique and tailored products and services. While saving is becoming more important, consumers in the UAE prioritize spending on education, with nearly half of them planning to increase their education spending over the next 12 months. Research also shows that consumers plan to increase spending on health and wellness, groceries, and new technology in the coming year.
