14 August 2017
Consumer spending in the United Arab Emirates is set to reach $261 billion by 2021, according to Dubai Chamber of Commerce and Industry.
The organisation said that consumer spending reached almost $183 billion last year, and is set to grow at a rate of about 7.5 percent per year over the next four years.
Dubai Chamber said that data provided by Euromonitor International found that the UAE had the highest level of consumer spending per household of any Gulf country.
Spending per household amounted to $103,000 in the UAE last year, compared to $96,000 in Bahrain, which had the second-highest level of consumer spending.
Dubai Chamber said that the biggest proportion of money was spent on housing, which accounted for 41 percent ($75.7 billion) of total consumer spending.
Food and non-alcoholic beverages was the second-biggest category, responsible for 13.5 percent of spending ($24.8 billion).
Transport was the third-biggest area of spending, making up 9 percent ($16.7 billion) of the total.
Hamad Buamim, the president and CEO of Dubai Chamber, said: "The UAE‘s consumer market is largely being driven by a fast-growing population with relatively high incomes, which are key economic fundamentals that support a robust long-term outlook for spending growth in the country.”
He said that the country's young and diverse population has attracted the interest of international brands and a growing number of e-commerce companies.
He also said that the growing number of tourists also contributed to consumer spending, especially within the retail, tourism, hospitality and transport sectors.
Communications represented the fastest-growing category of spending, growing by 10.2 percent year-on-year. This was attributed to the increasing penetration of smart phones. Health goods and medical services was the second-fastest growing, at a rate of 8.2 per cent year-on-year.
The research found that consumer spending made up about 45 percent of of the UAE's GDP, which is higher than the 39 percent average for the Gulf region, but is lower than the 56 percent registered in the E.U. or the 68 percent level recorded in the U.S.
Further reading:
- Promising results for services in the UAE
- UAE consumers rank high in appetite for artificial intelligence
- Consumer protection in the GCC must remain a top priority for governments
- Dubai Economy launches Consumer Happiness Centre
- Workers in UAE consumer goods industry in high demand despite slow hiring trends
© Express 2017
