UAE economic keeps its level as optimistic. Over the years, it increases significantly in many sectors. More people spend for e-commerce, housing, households and retail as the example of consumer spending in UAE. Here’s how to capture their pattern of spending.
UAE Growth Rate and Sectors
The annual growth of UAE from 2016 to 2021 is about 7.5% an it marks the good growth. This estimation has been published by Dubai Chamber of Commerce. For the consumer spending itself, UAE records about 45% from its GDP. Its development accounted 45% for Asia.
Those numbers come from the large consumer market, population growth, population spending habit, and their high incomes. They are the fundamental factors and support system for the country. Another key is their diverse population which attracts the diverse markets.
The very first sector which dominates consumer spending is housing. As the top spending, it records about $75.7 billion and 41% as its percentage. The main reason is there are many immigrants come to UAE for business purposes or enjoy the country as a new world for living.
The next sector is followed by food and non-alcoholic beverages. The population in UAE loves to enjoy the diversity of culinar, yet they don’t enjoy much alcohol since it’s stricter. After that, there’s the transportation sector which is supported by spending on luxurious vehicles and high mobility.
Consumer Spending in UAE
Apparently, the consumen behavior in UAE shifted since the global market has been attacked by digital world. This phenomenon changes the economy implementation of digital transformation. The rise of Fintech is something unstoppable and attracts more consumers.
Nowadays, more people spend their time to shop online instead of visiting the retail store directly. The growth of new brands competes through the internet. Young generation use their communication technology or internet to check brand profiles and baited by the ads on social media.
The most competitive spending isn’t housing anymore, but beauty and fashion. Those products increases significantly in 2020. The consumen also chooses the internet to check their hobbies and accomodation. The total spending of them is about USD 5 billion.
Not only the type of product, the way people in UAE doing transactions has also changed. People choose cashless and use pay later option which are more popular. The reason is the fast, simple and high security payment especially for e-commerce.
Key of Market Research in UAE
Rather than theory, practical business is needed based on the evidence in the market such as the change of market demands and market challenge. Consumer spending also influences many kinds of uncertainties from profiles competition, suppliers, partners, channels, competitors and customers.
The factors which are important to examine are behavior changing, demographics based (age, gender, and income), and buying trends (phenomenon, brand profile, and fintech offering). They contribute to the sectors development in UAE and become strategic to see the blind spot in market.
Capturing the consumer spending in UAE needs further research by experienced team. The area includes e-commerce, marketplace, digital wallet and digitization of marketing are the main parts to identify. After all, they are the challenges to keep thriving in a small or large market in UAE.