UAE Residents Look For Ways to Save Amid Rising Living Costs. As the cost of living continues to rise, UAE residents are increasingly adapting their spending and saving habits to manage their finances more effectively. According to recent surveys, many residents are planning to save more and spend less in the coming year, employing various strategies to stretch their budgets.
UAE Residents Look For Ways to Save Amid Rising Living Costs
A survey by Euromonitor revealed that 72% of UAE consumers have noticed an increase in the cost of everyday items. In response, 31% of those surveyed reported shopping more frequently at stores where they hold loyalty cards or store credit cards, which offer discounts or rewards. This trend reflects a broader shift towards finding value and maximizing savings through loyalty programs and credit offers.
Additionally, there is a growing interest in purchasing second-hand items. Baby boomers and Gen Z, in particular, are leading this trend, with 64% indicating a willingness to buy used products. This approach not only saves money but also aligns with a more sustainable lifestyle.
Prioritizing Quality and Brand Loyalty
Despite the emphasis on savings, many UAE residents continue to prioritize quality over quantity. According to Euromonitor, 32% of respondents prefer buying fewer, higher-quality items rather than opting for cheaper alternatives. Brand loyalty remains significant, with 34% of consumers regularly seeking well-known and trusted brands.
Employment Trends and Cost of Living
The rising cost of living has also impacted employment trends in the UAE. A survey by Adecco, a global HR solutions firm, found that 67% of UAE employees are considering changing jobs, largely due to financial pressures. This statistic underscores the broader economic impact of inflation on residents’ lives and employment decisions.
Dubai and Abu Dhabi have seen significant changes in their cost of living rankings. According to Numbeo, Dubai’s position rose from 138th to 70th, and Abu Dhabi’s from 164th to 75th in the global cost of living index during the first half of 2024. This rise indicates a growing financial burden on residents, particularly in urban areas.
Focus on Education and Wellness
Despite the need for cost-cutting, spending on education remains a priority for many UAE residents. Euromonitor’s Voice of the Consumer Lifestyles Survey 2024 revealed that 49% of respondents plan to increase their spending on education in the next year, with 44% aiming to enhance their career prospects through further training or studies.
Health and wellness are also key areas where consumers are willing to allocate more funds. The survey indicated that 48% plan to increase spending in this area, along with 45% on groceries and 44% on new technology. These categories reflect a continued focus on quality of life, even amidst economic challenges.
Generational Spending Habits
The survey highlighted distinct generational differences in spending habits. Millennials, for example, place a high value on experiences, with 96% seeking personalized and tailored shopping experiences. Gen X, meanwhile, shows a strong tendency towards charitable giving, with 88% donating used items annually. This generation also values personalized products and services, with 74% expressing a preference for tailored offerings.
Conclusion
UAE residents are navigating the rising cost of living by adjusting their financial strategies, emphasizing savings, and making selective spending choices. While the economic landscape presents challenges, many are finding ways to maintain their quality of life through thoughtful financial management.
