Dubai top hub for luxury shopping
dubai — Even with the looming economic uncertainties in the GCC region, a majority of residents did not cut back on their spending in 2015, experts at American Express Middle East found.
Discussing the findings of a recent survey commissioned across five GCC countries, Mazin Khoury, CEO of American Express Middle East, explained that there was a noticeable shift in spending habits, with consumers shifting their spending to focus more on the necessities of life. The study also found that clothing, footwear, and holidays saw a substantial rise in spending, while spending on luxuries remained buoyant, particularly experiential spending.
“Despite economic headwinds across the region, our research shows little slowdown in the volume of spending but we have seen a pretty significant redistribution in how people are spending their disposable income,” said Khoury. “It is evident that people are spending more cautiously and are focusing more on essentials.”
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 $75,000 or higher. The survey was carried out among residents of the UAE, Oman, Qatar, Bahrain, and Kuwait, who had lived in the country for at least one year.
The research found that just 18 per cent of respondents in the UAE said that they spent less in 2015, but it was apparent that many had shifted their spending to focus more on the necessities of life. Around 66 per cent spent more on food and drink to consume at home, and 69 per cent spent more on household items. An estimated 40 per cent of UAE respondents also indicated that they contributed less to their savings and pensions.
The new spending patterns are similar across all age groups, although those over 40 are most likely to cut back on socialising, with over 51 per cent deprioritising this area.
The story is also similar across all five countries surveyed. In Bahrain, 55 per cent spent less on dining out in 2015, while 62 per cent spent more on eating at home. Similarly, in Oman 88 per cent spent more on food and drinks for home, while 41 per cent cut back on socialising.