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Many consumers in the UAE plan to cut back on clothes shopping as they tighten their belts in the face of soaring global inflation, according to a new survey.
Conducted on 880 respondents in the UAE by Dubai-based consultancy Insight Discovery, the survey found that consumers also planned to cut back on petrol expenses, weekend activities and dining out.
Asked which areas they will reduce their spending in over next three months in view of the rising prices, 26% of those polled cited clothes as the top area to make the reductions. The next highest-ranking issue, named by 15% of respondents, were petrol expenses. A further 9% cited weekend activities, dining out and luxury products as the top three areas to make cutbacks.
In September, the UAE central bank projected 2022 inflation at 5.6%, which makes it the country's highest rate since 2016.
Among those surveyed by Insight, 31% of women, as opposed to just 24% of men, said they would reduce expenses on clothes first, then other areas.
Emiratis were at the forefront in reduced spending on clothes and petrol, with 35% ranking clothes and 20% ranking petrol as the top two cutback areas, followed by Westerners (28%).
The survey was conducted on behalf of the global life assurance company Friends Provident International (FPI), a business regulated by the Central Bank UAE.
“The cost-of-living squeeze is underway among many UAE consumers and it’s not a surprise to see a little over a quarter planning to reduce their spending on clothes and fuel. What is rather encouraging is that despite the financial squeeze the vast majority are not looking to reduce their savings plan contribution,” said David Kneeshaw, Group Chief Executive of IFGL, which owns FPI.
Meanwhile, Mercer in its 2022 UAE Inflation Spot Survey found that UAE companies were largely resistant to demands for higher pay to offset the impact of inflation despite requests from employees. Almost 84% of businesses polled by Mercer acknowledged that they have yet to adjust workers' pay despite soaring living costs.
(Reporting by Brinda Darasha; editing by Seban Scaria)
