UAE residents' optimism about personal finances improves as economy reopens

Dubai - A majority of residents said they were actively reducing their non-essential expenses.

Nearly one-third (33 per cent) of UAE residents expect the state of their personal finances to improve in the next 12 months - while 23 per cent expect it to remain unchanged, according to a new survey.
The economic survey released by YouGov on Wednesday also noted that 25 per cent believe their financial situation will worsen.
The proportion of residents who said their financial condition deteriorated during the crisis, compared to a month ago, has reduced from 56 per cent in May to 42 per cent at the end of June. On the contrary, projections of their monetary situation improving or remaining unchanged has gone up from 6 per cent to 11 per cent and 33 per cent to 41 per cent, respectively.
In order to deal with the financial implications of the virus, a majority of residents said they were actively reducing their non-essential expenses. A third (34 per cent) were relying on their savings to manage expenses, but this number has come down from 34 per cent to 27 per cent since the initial wave of the survey.
On the whole, the proportion of residents who believe the Covid-19 situation in their country is improving has increased since May. Data collected at the end of June indicate the majority feels the UAE has made progress in this regard. The figures also seem to align with the reopening of businesses in June, recording a gradual increase throughout the month.
Confidence growing
Confidence in the recovery of the economy also seems to be on the rise. When asked about the UAE's economic situation in the future, 27 per cent residents opined that the country's economy would be growing or booming in the next 12 months. This is up from 17 per cent who felt the same way in early May.
 
However, 33 per cent still believe the economy will be in a recession; the number is down from 40 per cent who said this in early May.
 
A similar trend is evident when it comes to job security where, although a large proportion of the public continue to experience insecurity regarding their jobs, the number seems to be declining week-on-week.
 
Fifty-seven per cent admitted to feeling less secure about their jobs when the survey was first conducted in May. However, with the reopening of businesses, this figure has decreased and, by the end of June, the number was down to 47 per cent.
 
A parallel movement is clear in the level of business activity, where the number of respondents saying they have experienced decreased level of business activity has fallen from 67 per cent to 48 per cent, while those saying it has increased has trended upward between May and June (from 7 to 17 per cent).
 
The survey was conducted over the course of eight weeks in May and June among over 8,000 respondents in the UAE.
 
-waheedabbas@khaleejtimes.com

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