Oman- GCC residents continue to spend on luxuries despite economic slowdown shows survey

5/1/2016 6:53:07 AM

(MENAFN- Muscat Daily) Muscat-

Despite economic uncertainties in the region there has been little slowdown in the volume of spending according to the American Express Middle East Spending Survey conducted by GfK.

The survey which covered high income households in the UAE Oman Bahrain Qatar and Kuwait showed that there has been a noticeable shift in spending habits and are focusing more on the necessities of life. In Oman 88 per cent spent more on food and drinks for consumption at home while 41 per cent cut back on socialising.

In UAE for example 66 per cent spent more on eating at home while a further 69 per cent spent more on household items. Whereas in Bahrain 55 per cent spent less on dining out in 2015 while 62 per cent spent more on eating at home a clear shift in spending habits. Just 20 per cent of the respondents said they spent less in 2015.

While 73 per cent said they spent more on food and drink to consume at home 67 per cent spent more on household items and 42 per cent cut back on socialising. These shifting patterns have also impacted the amount respondents contributed towards saving and pensions with 43 per cent cutting back in this area. 'Despite the economic headwinds across the region our research shows little slowdown in the volume of spending but we have seen a pretty significant redistribution in how people spend their disposable income' said Mazin Khoury CEO American Express Middle East.

'It is evident that people are spending more cautiously and are focusing more on essentials' he continued. The spending patterns are broadly similar across all age groups although those over 40 are deprioritising going out the most. Despite these shifts residents in the five countries continued to spend on luxuries with around nine per cent of the monthly household income of those surveyed spent on good things in life.

This equates to just over US$2000 although in Qatar that figure doubles to US$4074. Holidays (34 per cent) and fine dining (27 per cent) are where people spent the most on luxury. Holidays ranked number one for residents of all age groups and in all countries but in particular with residents of Kuwait and those aged between 30 to 34 years. Respondents also indicated that personal wellness would become more of a priority in the next 12 months with 26 per cent saying it would become their top luxury spending priority.

Khoury added 'American Express has been in the Middle East for over 50 years and we have helped our card members manage their finances through ups and downs of economic change. Whether they use their cards to pay for their weekly shopping or a holiday they have confidence knowing that our organisation is behind them providing them with world-class benefits customer service and security.'

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