PHOTO
· A quarter (24%) of respondents cut back planned spending in 2015
Qatar residents - similar to neighboring countries - shift spending to focus more on essentials
Doha - Qatar - Findings from a survey commissioned by American Express Middle East across five GCC countries show residents of Qatar spend more on luxury goods and experiences than the rest of the region. More than $4,000 a month is spent on luxury - approximately 12% of average household income.
This finding comes despite a noticeable shift in spending habits with people focusing more on essentials. The American Express Middle East Spending Survey was conducted by GfK and involved high income households in the UAE, Oman, Bahrain, Qatar and Kuwait. The research also revealed that nearly a quarter (24%) of respondents cut back on planned spending in the last 12 months. Over three quarters of respondents (79%) said they spent more on transport, and 74% paid more on rent. Budgets for socialising were also squeezed with 42% spending less on this category.
"The economic headwinds across the region are affecting many and we have seen a significant switch in how people are using their disposable income. Despite that, we're still seeing buoyant spending on luxury experiences and goods," said Mazin Khoury, Chief Executive Officer, American Express Middle East.
The story is also broadly similar across all five countries surveyed. Looking at Qatar, 26% spent less on dining out 2015 while 72% spent more on food and drinks for consumption at home - a clear shift in spending habits. Similarly, in Oman 88% spent more on food and drinks for consumption at home while 41% cut back on socialising. While in Kuwait,85% spent more on food and drinks for consumption at home while 56% cut back on socializing.
As with everyday spending, there is also a change in the way people spend on luxuries. In Qatar, nearly a quarter (24%) of respondents plan to prioritise personal wellness in the next 12 months with fine dining the category to lose out.
Mr Khoury added: "American Express has been in the Middle East for over 50 years and throughout this time we have helped our Cardmembers manage their finances through the ups and downs of economic change. Whether they use their cards to pay for their weekly shopping or a holiday, they have confidence knowing that our organisation is behind them providing them with world class benefits, customer service and security."
-Ends-
About the research
The survey involved a series of face-to-face interviews and was undertaken by GfK in November and December 2015. The 430 respondents surveyed are active decision makers for luxury purchases in their households, and have annual household incomes of USD 75,000 or higher. The survey was carried out among residents of UAE, Oman, Qatar, Bahrain and Kuwait who had lived in the country for at least one year.
To find out more about American Express, or apply for a card, please visit: www.americanexpress.com.qa or vist our Facebook page: www.facebook.com/AmericanExpressME
About American Express Middle East
American Express Middle East (Middle East) B.S.C. (c) - American Express Middle East (AEME) provides reliable, flexible, tailored and rewarding solutions for its Cardmembers, merchants and business partners.
American Express began operations in the MENA region in 1959 and set up its first office in Bahrain in 1977. In 1992, American Express Middle East B.S.C (c) was established in Bahrain as a joint venture company owned by American Express and Mawarid Investment Limited. Today, American Express Middle East employs more than 500 staff in the region, covering its consumer card, corporate payments and merchant businesses across all the Middle East and North Africa region.
American Express is the Card for those individuals who value world class service, rewards, access and peace of mind wherever they are in the world. The company issues dollar currency Credit and Charge Cards: The Centurion® Card, The Platinum Card®, the American Express® Gold Card, the American Express® Platinum Credit Card, the American Express® Gold Credit Card and the American Express® Card. American Express Middle East also offers a range of local currency-denominated Credit Cards to give Cardmembers across the region even greater flexibility. American Express Middle East also offers a range of corporate expense management solutions including The American Express® Corporate Card and Business Travel Account, helping companies achieve savings, financial control and the opportunity to collect rewards.
For further media information, please contact:
Samar AbdelHuq
PR Account Director
Memac Ogilvy Public Relations
Tel: (+973) 17561716
Email: samar.abdelhuq@oglivy.com
© Press Release 2016
