Abu Dhabi: Consumer Confidence Dips On Cost Of Living Worries

The Landmark skyscraper, center, stands on the city skyline beside a waterway in Abu Dhabi, United Arab Emirates, on Monday, May 30, 2016. Abu Dhabi, which sits on six percent of global oil reserves, cut spending by a fifth in 2015 and plans a further 17 percent reduction this year, according to the governments bond prospectus. Photographer: Alex Atack/Bloomberg
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Consumer confidence in the UAE declined slightly in the second quarter of 2019 compared to the previous quarter, according to new research by Yallacompare, the comparison site for financial products.

Its Consumer Confidence Tracker Q2, which polled more than 1,000 UAE residents on the state of their finances and attitudes towards work, revealed that 19.9 percent of respondents feel more confident about their finances than they did 12 months ago.

That figure compares to 21 percent who felt the same way in Q1 and 22.2 percent who felt the same way in Q4 2018.

The proportion of respondents feeling less confident about their finances increased to 42.7 percent in Q2, compared to 38.3 percent in Q1. Slightly lower levels of confidence in Q2 may reflect renewed worries over the cost of living. The proportion that said they were concerned about inflation, but thought they could cope with it, declined from 51.8 percent in Q1 to 49.5 percent in Q2.

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The number concerned they might not be able to deal with inflation rose from 40 percent to 43.9 percent in the same period.

The number with more credit card debt than a year ago increased from 18.2 percent in Q1 to 21.3 percent in Q2 while more than 21 percent have more loan debt than a year ago, compared to 18.8 percent in Q1.

Asked whether or not their finances would impact their ability to stay on in the UAE, residents gave mixed responses. In Q2, 25.3 percent said they’re more likely to leave the UAE for financial reasons compared to 23.9 percent in Q1.

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At the same time, 45.6 percent said they’re less likely to leave the UAE because of money worries, more than the 44.8 percent who said the same thing in Q1.


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