ACNielsen's global consumer survey shows UAE Consumers more bullish on economy than those in the US, UK and Singapore (page 2 of 2)

43% consumer use their savings to pay off debts and loans. In fact, UAE is very near the global top 10 by debt payoff rate. "With the recent increase in prices in the UAE, consumers are under pressure to first pay their credit card bills and their debts," explained Piyush Mathur.

Save... to spend on holidays?

Travel agencies rejoice! Spending on holidays ranks third in UAE consumer's budget after savings and debt return. As many as 32% of Internet users say they spend the money left after covering primary living expenses on vacations.

"Holidays are important for both Nationals and Expatriates in UAE. The motivation among Nationals is more towards relaxation while Expatriates are looking more for adventure and discovery." Adds Piyush Mathur "Since we have a large expat population in UAE there is substantial travel for holidays as well as travel to the home country for a vacation. This is triggered by availability of air tickets as part of expatriate packages in the country. It certainly becomes evident during the summer season when a significant proportion of the population is out of the country".

Home entertainment

Home entertainment ranked first in the popular 'spend article' list, globally. In the UAE, it is the next popular option after holidays and vacations with 26% of respondents spending their spare money here. "'Shoppertainment' is a concept unique to the region whereby shopping and entertainment go hand-in-hand. This is facilitated by the availability of world class retail environment and the extended summer season" says Piyush Mathur. Globally, Latin Americans are the biggest spenders, with 51% regional average.

Investment in Shares of Stocks / Mutual Funds

Almost a quarter of UAE consumers - 24% - invest spare cash in share stocks/ mutual funds. Stock shares and fund investments is another area where UAE is among Top 10 most spending countries, surrounded by Asian states. Apparently, Asian and UAE consumers try to not only save but multiply their resources, which cannot be said about Europeans. In Europe, putting money into savings ranks fifth after out of home entertainment, buying new clothes, holidays and home decoration.

"The recent trend of getting high ROI by investing in shares/IPO's is gaining momentum and is much higher at 24% than the global average of 14%. That really explains the heavy oversubscriptions of the IPO's in the UAE", adds Piyush Mathur. Notably, 12% of respondents in the UAE said they have no spare money to spend. This is slightly higher than the global average of 10%.

Major fears and concerns

One in ten UAE consumers feel that there are no major fears and concerns compared to one in sixteen in other parts of the world. "In the UAE, crime levels are much lower than most other developed markets and people are happy living here", comments Piyush Mathur

The top two concerns are about the economy and job security, followed by health concerns. "It's no surprise, since in any economy growing at a rapid pace consumers do get skeptical about the longevity of such growth. Further, the relatively less freedom for changing jobs does make consumers concerned about their job security."

Health concerns are at a much lower level (10%) compared to a global average of 18%. Health concerns are much higher among Europeans and Americans with their ageing population as compared to a relatively younger population in the UAE.

"The UAE has grown tremendously over the past few years and together with the consumer confidence portrayed in our survey, we believe we can be optimistic about our future," concludes Piyush Mathur.