Are UAE consumers starting to feel the pinch?

In many ways, the UAE is a retailer’s wet dream. The population is growing quicker than almost any other in the world at around 4.5% per annum; consumers have higher disposable incomes than pretty much anywhere else in the Middle East, apart from Kuwait; and in per capita terms, consumer spending in the UAE is miles above other markets in the region.And people here have some solid reasons to be confident when it comes to spending their hard-earned cash: there is no income or corporate tax, there is no VAT, petrol costs a fraction of what it does in most developed countries, and many goods — especially things like electronics or cars — are dirt cheap. But it’s not that surprising to see some recent signs suggesting that the UAE’s affluent consumers might just be beginning to lose a little of their confidence. A regular survey, which was last conducted