Expat females in Dubai responsible for 80% of consumer spending
In one of my earlier posts I have mentioned that expats should watch what they are spending in Dubai. There is a culture of spending which has been carefully built up in Dubai. In the US consumer spending is responsible for 70% of the GDP. In China this was 36% in 2013 and they have been trying hard to increase this percentage. In the UAE in 2014 in the UAE this was 56.5% in the UAE up from 49.8% in 2013. Where is this growth coming from?
Glasgow Consultancy Group has discovered in a recent survey that 80% of the decisions related to consumer spending is being made or influenced by females in Dubai. The results also found the preferred shopping location in Dubai are The Dubai Mall, followed by Mall of the Emirates, Ibn Batutta, City Centre Deira, Marina Mall and BurJuman.
Quite often my colleagues and clients make jokes that their wives are spending all their money when I ask what happens with their savings.
Companies in Dubai have made different marketing strategies to increase consumer spending. For example everybody can order meals and groceries and get it delivered home. Making it easy and comfortable for people to spend will increase the likelihood that they will do it.
Peer pressure is another reason why expats are spending according to the survey. This is something that happens all over the world and is not specifically related to Dubai, however in Dubai you have advertisements and other marketing tools that make you aware of it all the time.
On the long term it creates a healthy economy if a country has a high percentage of consumer spending. UAE will have a more sustainable economy and can rely less on the energy sector. At the same, expats in Dubai should be wise and aware about their spending habits and not spend for the wrong reasons.
Posted on Tue, November 10, 2015
by Simon Snelder filed under