The Dubai Chamber of Commerce predicts annual consumer income growth in the United Arab Emirates at 7.5% over the next five years.
Consumer spending in the UAE will grow at an aggregate annual rate of 7.5% over the next five years and will exceed $ 261 billion by 2021 due to a growing population, the Dubai Chamber of Commerce said in a report.
“The UAE's consumer market is largely determined by its fast-growing population with relatively high incomes, which are key economic fundamental factors that support reliable long-term prospects for spending growth in the country,” said Hamad Buamim, CCI Executive Director.
Last year, the UAE recorded the highest consumer spending per family in the region - $ 103 thousand.
Consumer spending accounted for 45% of the UAE's GDP, compared with an average of 39% for the Gulf region, 45% in developing countries in Asia, 56% in the EU and 68% in the United States.
Last year, the residential segment was the leader in spending, reaching $ 75.7 billion (41% of total spending), followed by food products and soft drinks ($ 24.8 billion) and transportation ($ 16.7 billion).
According to forecasts, by 2021 the communications segment will achieve the highest growth rates of 10.2% due to the high penetration rate of mobile communications and other digital services. Medical goods and services will be in second place among the fastest growing segments with a projected growth rate of 8.2%. Hotels and catering will take third place with an increase of 8.1% per year, the report said.
In the future, it is expected that high incomes, lifestyle changes, and the strengthening of a healthy lifestyle concept will stimulate consumer demand for goods and services in family-oriented categories, such as education and transportation, as well as costs for premium goods and services.
