Consumer Lifestyles in The United Arab Emirates

CONSUMER LIFESTYLES IN THE
UNITED ARAB EMIRATES

Euromonitor International
January 2018
CONSUMER LIFESTYLES IN THE UNITED ARAB EMIRATES Passport I
LIST OF CONTENTS AND TABLES

Lifestyles in the United Arab Emirates .......................................................................................... 1
Chart 1 Consumer Lifestyles in 2017 ........................................................................ 1
Top Five Consumer Trends .......................................................................................................... 1
Consumer Spending Expected To Rebound ............................................................................ 1
Widening Rich-poor Divide Defines Consumer Choices ........................................................... 2
Greater Empowerment of Female Consumers ......................................................................... 2
Social Media Use Amongst the Highest in the World................................................................ 3
Consumers Embrace Convenience .......................................................................................... 3
Consumer Segmentation .............................................................................................................. 3
Babies and Infants (0-2 Years) ................................................................................................. 3
Chart 2 Babies and Infants in Focus 2016-2030 ....................................................... 4
Kids (3-7) .................................................................................................................................. 4
Chart 3 Kids in Focus 2016-2030.............................................................................. 5
Tweens (8-12) .......................................................................................................................... 5
Chart 4 Tweens in Focus 2016-2030 ........................................................................ 6
Teens (13-17) ........................................................................................................................... 6
Chart 5 Teens in Focus 2016-2030........................................................................... 7
Young Adults (18-29) ................................................................................................................ 7
Chart 6 Young Adults in Focus 2016-2030 ............................................................... 8
Middle Youth (30-44) ................................................................................................................ 8
Chart 7 Middle Youth in Focus 2016-2030 ................................................................ 9
Mid-lifers (45-64)....................................................................................................................... 9
Chart 8 Mid-Lifers in Focus 2016-2030 ................................................................... 10
Later-lifers (65-79) .................................................................................................................. 10
Chart 9 Late-Lifers in Focus 2016-2030 .................................................................. 10
Chart 10 Life Expectancy 2016-2030 ........................................................................ 11
Seniors (80+) .......................................................................................................................... 11
Chart 11 Seniors in Focus 2016-2030 ...................................................................... 12
House and Home ....................................................................................................................... 12
the Home Space ..................................................................................................................... 12
Chart 12 Home Ownership 2016-2030 ..................................................................... 13
Chart 13 Households by Type 2016 .......................................................................... 13
Chart 14 Households by Urban and Rural 2016-2030 .............................................. 14
Running Costs ........................................................................................................................ 14
Chart 15 Household Running Costs 2016-2030........................................................ 15
Spending and Saving ................................................................................................................. 15
Attitudes Towards Spending ................................................................................................... 15
Attitudes Towards Savings ..................................................................................................... 16
Chart 16 Disposable Income and Savings 2011-2016 .............................................. 16
Shopping .................................................................................................................................... 17
© Euromonitor International
CONSUMER LIFESTYLES IN THE UNITED ARAB EMIRATES Passport II
Main Household Shop ............................................................................................................ 17

Chart 17 Household Shop by Retailer Type 2016 ..................................................... 18
Shopping for Big-ticket Items and Personal Goods ................................................................ 18
Shopping Online ..................................................................................................................... 18
Chart 18 Spending on Internet Retailing 2016 .......................................................... 19
Eating and Drinking .................................................................................................................... 19
Eating Habits .......................................................................................................................... 19
Chart 19 Consumer Spending on Food by Type: 2016 ............................................. 20
Chart 20 Total Consumer Spending compared to Spending on Food 2016 .............. 20
Drinking Habits ....................................................................................................................... 21
Chart 21 Consumer Spending on Drinks by Type: 2016 ........................................... 22
Chart 22 Total Consumer Spending compared to Spending on Alcoholic and
Non-Alcoholic Drinks 2016 ......................................................................... 22
Grooming and Appearance ........................................................................................................ 23
Investing in Yourself: Female Personal Grooming and Hygiene ............................................. 23
Chart 23 Consumer Expenditure on Clothing, Footwear and Personal Care by
Men and Women 2016 ............................................................................... 23
Investing in Yourself: Male Personal Grooming and Hygiene ................................................. 24
Chart 24 Total Consumer Expenditure Compared with Spending on Clothing,
Footwear and Personal Care by Men and Women 2016 ........................... 25
Style Icons and Celebrity Influences ....................................................................................... 25
Healthy and Ethical Living .......................................................................................................... 25
Attitudes To Health and Wellbeing.......................................................................................... 25
Chart 25 Health-related Spending and Healthy Life Expectancy for Men and
Women 2016 – 2030 .................................................................................. 26
Chart 26 Obese and Overweight Population 2016 and 2020 .................................... 26
Ethical Living .......................................................................................................................... 27
Sport and Fitness.................................................................................................................... 27
Leisure and Recreation .............................................................................................................. 28
Leisure Time ........................................................................................................................... 28
Chart 27 Household Possession of Selected Home-Tech and Mobile Phones
2016; Percentage of Households with Internet Access .............................. 29
Chart 28 Total Consumer Expenditure compared to Spending on Leisure and
Recreation 2016 – 2030 ............................................................................. 29
Vacations ................................................................................................................................ 30
Chart 29 Total Consumer Expenditure compared to Spending on Package
Holidays 2016 - 2030 ................................................................................. 30
Opportunities for Celebrations and Gift-giving ........................................................................ 30
CONSUMER LIFESTYLES IN THE UNITED ARAB EMIRATES Passport 1
CONSUMER LIFESTYLES IN THE

UNITED ARAB EMIRATES
LIFESTYLES IN THE UNITED ARAB EMIRATES
Chart 1 Consumer Lifestyles in 2017
Source: Euromonitor International
TOP FIVE CONSUMER TRENDS
Consumer Spending Expected To Rebound

While the standard of living in the United Arab Emirates (UAE) is one of the highest in the
world and many Emiratis and high-skilled expats enjoy very luxurious lifestyles, in recent years
the slowing economy has negatively affected consumer confidence and, in turn, consumer
spending. Average spending per household fell in real terms by 27% from 2011 to 2016. The
strong US-dollar-pegged dirham has also made items more expensive compared with those in
Western countries, causing affluent consumers to buy their goods abroad.
But despite consumers’ concerns about the sluggish economy and, more recently, the
introduction of VAT (value added tax) at 5% in January 2018, consumers are optimistic. A 2017
study by Bayt.com revealed that 63% of respondents said they were confident that their financial
position would improve, and indeed many observers predict that consumers spending will
rebound considerably in coming years. According to a 2017 study by the Dubai Chamber
reported on website thenational.ae, “The UAE‘s consumer market is largely being driven by a
fast-growing population with relatively high incomes, which are key economic fundamentals that
support a robust long-term outlook for spending growth in the country... Going forward, high
incomes, changing lifestyles, and increased health consciousness are expected to fuel
consumer demand for goods and services in family-focused spending categories, such as
education, and transport, as well as premium household products and services”.
Widening Rich-poor Divide Defines Consumer Choices

The UAE is a country of great income inequality and the gap between rich and poor continues
to widen. The country’s score on the Gini Index rose from 39.0 in 2011 to 39.6 in 2016.
According to Knight Frank’s (property consultancy) 2017 Wealth Report, the number of ultra-
high net-worth individuals in the Middle East grew by 48% between 2006 and 2016 and now
numbers 7,370, with a combined wealth of US$810 billion. Over 1,500 of these UHNWIs are
based in the UAE and this number is forecast to rise by 60% by 2026.
In sharp contrast, there are an estimated 4.5 million low-income migrant workers residing in
the country who are employed in the informal sector and earn very low wages. They typically
share accommodation and most of their earnings are dedicated to essentials such as food,
housing and communication or is sent back to families in their home countries. These
consumers, who are very price-sensitive and often unbanked, tend to drive demand for a wide
range of value-based products and services, including low-end smartphones, rather than
discretionary items. In addition, they are likely to be the most affected by the introduction of
VAT, as well as by the excise tax introduced on carbonated drinks, tobacco and energy drinks
introduced in 2017, which resulted in some prices rising by 50%. On the other hand, the number
of low-income consumers is projected to decline in coming years as many return to their home
countries.
Greater Empowerment of Female Consumers

Young Emirati women have far greater freedoms and opportunities than their parents, many
of whom grew up in a socially conservative society where they were encouraged to marry young
and start families. Millennial women are choosing university and professional employment in
record numbers and are consequently settling down later in life. Women now make up at least
70% of the student body in state universities. At the UAE's first Women's Economic
Empowerment Global Summit in 2017, Sheikha Jawaher (wife of Sultan bin Mohammed Al
Qasimi) declared that over 30% of managerial positions and 15% of expert positions in the
private sector are now held by women. She went on to say, “Real empowerment of women does
not come through pretty slogans or speeches, it comes through economic development and
proper support. There is still more that needs to be done, but the UAE has set an invaluable
standard in the achievement of this vision".
Most unmarried Emirati women still live at home but a recent article in the Financial Times
noted that they are starting to “question social conventions in a way that was once unthinkable”.
A 22-year-old former student from Dubai told the newspaper she had secretly applied for a job
in Abu Dhabi, saying: “I need to convince my parents to let me live by myself...I will be the first
woman in my family to do this. But I’m confident: I have already won the first battle”. Growing
social and professional empowerment is expected to translate into greater consumer
empowerment, with a growing number of women defying advertisers’ stereotypes and asserting
their strength as sophisticated consumers. A 2017 article on website khaleejtimes.com noted “It
would be foolish to ignore or underestimate the female consumer. Major current marketing
campaigns are skewed towards women consumers and these companies are confident they
have a winning strategy. Yet, it is practically evident that marketing strategies are just trying to
lure women consumers. Women seem to have grown beyond this. They can easily understand
the value and worth of products before they buy”.
Social Media Use Amongst the Highest in the World

A 2017 survey by the Federal Competitiveness and Statistics Authority revealed that nearly
one-third of respondents said they used social media on average two to three hours a day, while
16% said they use it more than five hours a day. According to a 2017 report by Hootsuite and
We Are Social, the UAE had a social media penetration rate of 99%, the highest in the world
along with Qatar. There were 8.2 million social media users, with 88% of the population
accessing platforms via mobile devices.
WhatsApp, Facebook and YouTube were found to be the most popular social media
platforms, used by 97%, 89% and 73% of respondents, respectively, while 35% used Twitter.
WhatsApp was used by 96% of Emiratis, followed by Instagram (78%) and Snapchat (62%);
while for expats the leading platforms were WhatsApp (97%), Facebook (93%) and YouTube
(75%). The survey also found that Emiratis preferred to use social media to get information
about news and social events significantly more often than expats, who used primary used
social media to connect with people. Expats also watched videos, listened to music and looked
at other people’s posts more often than Emiratis.
The wide use of social media has resulted in the considerable proliferation of UAE
‘influencers’ who tout a wide range of products and brands to eager consumers. A recent article
on website gulfnews.com reporting on a 2016 survey by BPG Cohn & Wolfe noted “If it’s a
fashion tip or even a suggestion to spice up a dish, bloggers and social media influencers will do
the talking on your behalf. So much so, 71% [of those] between 18 to 40 years...are ‘happy’ to
take advice online before making up their minds to purchase something,” adding “Not
surprisingly, beauty, fashion and food are areas where residents are ‘most likely to turn to social
media influencers for recommendations’”.
Consumers Embrace Convenience

Consumers’ fast-paced, urban lifestyles have resulted in a great desire for convenience,
driving increased demand for products and services such as convenience stores, fast food, food
delivery and online retailing. Technology has played a key role in the search for convenience,
facilitated by the UAE being among the world leaders in internet penetration and mobile phone
use. In 2016, 94% of households were online, while 69% accessed the internet via a mobile
phone. Between 2012 and 2017, spending on online purchases grew in real terms from an
average of AED1,103 per household to AED3,616, with 40% of transactions carried out via
mobile phones.
With consumers looking to save time and hassle when buying groceries, convenience stores
are becoming more popular, prompting retailers to introduce smaller formats in residential
zones. The free home delivery service offered by many convenience stores is also appealing to
ever busier consumers. As a result of their growing popularity, the number of convenience
stores increased from 209 in 2012 to 313 in 2017.
CONSUMER SEGMENTATION
Babies and Infants (0-2 Years)

 The UAE has a fairly low fertility rate of 1.7 children per woman and this is expected to further
decline 1.6 children per woman by 2030. The number of babies and infants 313,100 reached
in 2017 and is expected to grow to 318,000 by 2030. However, with expats making up 88% of
the population, most births are to foreign parents. Since only Emirate babies are entitled to
UAE citizenship, the native baby population remains relatively small.
 Infertility is a common problem among Emirati couples. According to a 2017 study by IVI
Middle East Fertility Clinic, demand for IVF was expected to reach AED5.5 billion in the UAE
by 2020, which is extremely high by global standards. According to Dr Eset of the Dubai
Herbal and Treatment Centre, common causes of infertility are “Stress, obesity, lack of
physical exercise, changes in eating habits and pollution, and medical disorders like
diabetes”. Furthermore, smoking prevalence is high and much of the population has a vitamin
D deficiency, which can lead to a reduced number of eggs in girls. Polycystic ovary syndrome
(PCOS) is said to affect as many as 60% of Arab women, while ovarian reserve is reduced in
the offspring of relatives who marry each other.
 Women are only entitled to 45 days of maternity leave in the private sector. In the public
sector, maternity leave is longer at 60 days, but this is still not considered nearly long enough.
Often lacking breastfeeding facilities at work, women are forced to start feeding their babies
formula milk early, despite a law in the country allowing babies the right to be breastfed until
the age of two. In general, women are comfortable with feeding their babies in public, and
outside of the workplace the UAE is well-equipped in terms of feeding facilities.
Chart 2 Babies and Infants in Focus 2016-2030
Source: Euromonitor International from national statistics/UN

Note: Data for 2017-2030 are forecasts
Kids (3-7)
 For the majority of parents who are expats, grandparents are not on hand to care for young
children so many working women have to rely on paid or voluntary help within their
communities or on private nurseries. In the public sector, departments with more than 50
female Emirati staff or where women collectively have more than 20 children must offer on-
site nurseries. Kindergarten (FS2), which is mixed gender, is compulsory from the age of four
to six, when Kids enter primary school.
 Many Kids start pre-school at the age of three (FS1) in order to be able to stay when they
reach kindergarten age. Sophie Oakes of education consultancy Gabbitas told
babyandchild.ae, “Quite often there is a lot of pressure from the schools for parents to accept
a place when their child is three so as to guarantee the place”. According to Alpen Capital,
there are some 165,000 children enrolled in pre-primary institutions, of which more than 80%
are in private centres. According to the report, the quality of childcare does not always reflect
the high fees, as the sector is not as highly regulated as other types of establishment. In Abu
Dhabi and Dubai, pink taxis driven by women are available to carry women, children under 10
and families. In addition, the front seats on the public buses are reserved for women and
children.
 Young children spend a lot of time indoors to avoid the hot temperatures outside. This is
leading to internet addiction among children as young as three. In 2016, an Emirati mother of
four, described to The National how her children aged between three and eight spend “up to
four hours a day and most of the weekends on their iPads”. These behaviours are likely to be
contributing to the problem of obesity among children in the region.
Chart 3 Kids in Focus 2016-2030

Note: Data for 2017-2030 are forecasts
Tweens (8-12)
 Tweens attend primary school up to the age of 12. Non-UAE nationals may attend state
schools as fee-paying students but most are at private schools. State schools (and
universities) are gender-segregated but many private schools are co-educational. Most
schools offer bus services and children tend to bring packed lunches from home for up to
Grade 4 (age 9) and use canteen services from Grade 5 onwards. There are more than 500
private schools, which range from Pakistani mission schools that can charge just AED185 per
month to international schools with fees of up to AED100,000. Many migrants cannot even
afford the lowest fees and it is estimated that over 20,000 Pakistani children do not attend
school, due to a lack of places in mission schools.
 With over 200 different nationalities living in the UAE, children tend to grow up in a multi-
cultural environment. Public education, which is compulsory for all UAE nationals, follows the
Arabic curriculum. Some 90% of private schoolchildren follow the national curriculum of the
UK, US, India or the UAE but most learn some Arabic. Other curricula include International
Baccalaureate (IB), Canadian, French, German, Philippine, Pakistani, Iranian and Japanese.
For Indian, Pakistani and Japanese curriculum schools, the academic year runs from April to
March. For all other curricula, it is from September to July.
 Tweens do not get much chance to be very active and tend to spend a lot of time watching TV
or on their gadgets. Media company Turner’s Kids, Compass study of 2016, which surveyed
more than 3,000 children in the Middle East aged 4-14, confirmed that TV remained the
primary source of entertainment for children across the region but the rise in mobile
broadband means they are becoming more digitally-savvy. The survey found that 45% of
children use YouTube for video entertainment, while over 50% use WhatsApp and 39% use
Facebook.
Chart 4 Tweens in Focus 2016-2030

Note: : (1) Data for 2017-2030 are forecasts
(2) This group includes the younger end of the population group ‘Generation Z’ (born from 1995-2009)
Teens (13-17)
 The internet has become something of an addiction for many Teens. A 2016 study of students
aged 10-20 by the Abu Dhabi Education Council, of whom 39% were Emiratis, found that 70%
used social media for 1-5 hours a day; 15% for 5-10 hours a day; and 12% for more than 10
hours a day. Social media had caused 41% of students to go for long periods without food or
drink; and 57% said they had unsuccessfully tried to quit within the past year. More than half
said social media deprived them of family time and prevented them from doing homework
(58% and 56%, respectively).
 Online gaming has become very popular among Teens, with many spending their leisure time
in gaming network centres. A centre operator told The Khaleej Times in 2017, “Gamers come
in early afternoon and stay late until after midnight. It's always packed here”. Many young
people are making big money from gaming tournaments, which can award prizes of more
than USD10,000 for the winners of games such as Overwatch and Call of Duty. One 16-year-
old told the website, “As far as training goes, we play five to six times a week as a full team,
for three to four hours each day”.
 There has recently been a surge in interest in sports by female Emirati Teens, inspired by role
models such as Amna Al Merri, who co-founded the UAE’s first female-only running club, and
Zahra Lari, the first Emirati female competitive figure skater. Team sports have also become
more popular among girls following the successes of the UAE women's national football team
and the first all-Emirate female under-18s rugby team, which took part in the Paris World
Games in 2017. This is driving demand for women’s sportswear, especially after Nike used
Zahra Lari as the face of its new Nike Pro performance hijab in 2017.
Chart 5 Teens in Focus 2016-2030

(2) This group includes the population group ‘Generation Z’ (born from 1995-2009)
Young Adults (18-29)

 More recently there has been a substantial rise in university student numbers, partly due to an
influx of international students, but also thanks to government efforts to promote further
education and encourage women to apply. The total number of higher education students in
both public and private establishments jumped by 42% over the 2011-2016 period, with
women now outnumbering men. There were more than 80 institutions in 2017. Emirati
students usually attend federal, gender-segregated universities. UAE University agreed in
2016 to admit a small number of foreign students because, as one professor told The
National, “They bring with them an international perspective, diversity of ideas and
experience, which fuel innovation”.
 As the workforce continues to age, Young Adults aged 20-29 made up just 22% of the
employed population in 2016, down from almost 29% in 2011. Gross incomes in this age
group were below-average, at AED106,157 per annum for those aged 20-24 and
AED126,085 for those aged 25-29. This represented a substantial fall of 18% and 17%
respectively in constant terms since 2011—a pattern observed across all age groups.
According to a 55-country study by Emolument.com, job satisfaction levels in the UAE were
the lowest of all countries in 2017, with 83% of respondents saying they were “bored at work”.
 A survey by the Federal Competitiveness and Statistics Authority released in early 2017
revealed that Young Adults aged 18-21 had the highest rate of social media usage among all
age groups. Overall, WhatsApp and Facebook were found to be the most popular social
media apps but LinkedIn was used mostly by those aged 22-34. Both Emiratis and expats
used WhatsApp in equal measure (96% and 97% respectively). The next most popular social
networking apps among Emiratis were Instagram (78%) and Snapchat (62%); while for expats
they were Facebook (93%) and YouTube (75%).
Chart 6 Young Adults in Focus 2016-2030

(2) This group includes older consumers in Generation Z (born from 1995-2009) and younger Millennials (born from
1980-1994).
Middle Youth (30-44)

 With the average age of first marriage for a woman being 26 and a man 27, many people in
this age group are married with young families and are therefore the main drivers of demand
for family-related products and services. Nevertheless, marriage rates in the UAE are among
the lowest in the world, at just 1.8 per thousand population in 2016. This is primarily because
much of the population consists of single male expats (males in the country outnumber
females by a ratio of almost 3:1).
 Many nationals still prefer arranged marriages, but an increasing number of Emirati men are
marrying foreign women, despite government grants of AED70,000 being available to Emirati
couples who wed. It is estimated that more than a quarter of all marriages are now mixed. The
high cost of marriage is off-putting for many: the average cost of a wedding is said to be more
than AED300,000, while Emirati women can demand a substantial dowry (officially up to
AED20,000 but families often set much higher amounts).
 Middle Youth make up the majority of the workforce (51% in 2016) and those in the 40-44 age
group are among the highest earners, with average annual gross incomes of AED164,756 in
2016. However, there is a big income gap in the UAE. A small number of people are very
wealthy—mainly Emiratis (who account for around 10% of the total workforce and are largely
business owners or work in the state sector) and high-skilled expats. The UAE’s Emiratisation
programme requires all companies with more than 50 employees to employ 2% of nationals.
Banks and insurance companies must employ 4% and 5% of nationals, respectively.
However, the majority of the workforce consists of low-income migrants from India, Pakistan,
Bangladesh and the Philippines. Many of these earn less than AED5,000 per month, much of
which is sent back to their families.
Chart 7 Middle Youth in Focus 2016-2030
Mid-lifers (45-64)
 As the population ages and migrants continued to enter the country, there has been a very
significant rise in the number of Mid-Lifers in the country. Their share of the total workforce
rose rapidly from 18% to 26% over 2011-2016. Many younger Mid-Lifers are at the peak of
their earning years, with those aged 45-49 recording an average gross income of
AED166,151. For these, top expenses include education for their children, many of whom are
going into higher education.
 While expats, who make up the vast majority of the population, must usually work up to the
age of 65 or lose their right to live in the UAE, most Emiratis are retired by the time they reach
their late forties or early fifities. This is because most UAE nationals work in the public sector,
where the retirement age is 49 (having been raised in 2016 by one year from 48). Once
retired, Emiratis are entitled to a generous pension, provided they have worked for 20 years.
Expats are not eligible for a state pension, although there is a gratuity scheme whereby
companies offer end-of-service pay-outs to employees.
 For UAE citizens who still want to work beyond retirement, there are various programmes to
help retrain them. For example, the Tajdeed programme offered by the UAE Academy and
Abu Dhabi Tawteen Council seeks to reintegrate former employees of civilian and military
services into the labour market and make use the experience and expertise they have
acquired during their working life. Many Mid-Lifers are also going into adult education -
especially women, who were formerly offered little in the way of educational opportunities.
Chart 8 Mid-Lifers in Focus 2016-2030
Later-lifers (65-79)
 With the population ageing rapidly, the number of Later-Lifers has shot up by over 50% since
2011. Nevertheless, the number remains very small at just 85,400 (in 2017) in comparison to
1.5 million Mid-Lifers, as this cohort consists almost entirely of UAE nationals. The over-65s
are generally well-off, since many Emiratis have accumulated assets and have retired on very
generous pensions. The average gross income of those aged 65+ was AED121,710 in 2016.
 The over-60s can avail themselves of a number of discount schemes. In Dubai, over 5,400
seniors are registered in the Thuker (Arabic for “We treasure”) programme of the Community
Development Authority (CDA). Their Thuker card gives them “VIP status”, allowing them to
skip queues and get free parking and discounts on things like medical tests and private
nursing home care. In addition, the new Thuker Social Club in Al Barsha – the first of its kind
in the UAE – enables seniors to socialise and be more active. Activities range from traditional
handicrafts and folk games to rehabilitation exercises, a library and a mosque.
 The vast majority of expats are forced to leave the country after the age of 65 as they are no
longer entitled to UAE residency once they stop working. Only a small number are able to
remain beyond retirement, for example by obtaining an investment visa by incorporating their
own business or investing in another, or by owning properties worth at least AED1 million.
Retirees with an adult child working in the UAE may also gain a residence permit for
dependents under some circumstances. Foreign retirees must hold health insurance policies
as they are not entitled to any national benefits.
Chart 9 Late-Lifers in Focus 2016-2030
Chart 10 Life Expectancy 2016-2030

Note: Old-Age Dependency Ratio: % of persons older than 65 per persons aged 15-64
Seniors (80+)
 As most expats have left the country by the age of 65, there were only 10,400 people aged
80+ in 2017 (although this number is expected to grow to 32,000 by 2030). In Emirati culture,
the elderly are highly respected and treated as a source of wisdom. Looking after elderly
relatives is considered a family duty and sending them to care homes is still not a widely
accepted concept. Nevertheless, factors such as the transition from extended to nuclear
families, more working women, longer life expectancies and increasing incidence of age-
related diseases is leaving many elderly people isolated.
 The elderly are well cared for by the state, which is starting to recognise the need to provide
more services - including care home facilities and at-home services - with the active support
of family members. A growing number of care homes offer elderly people the opportunity to
socialise, take part in trips and recreational activities and attend religious lectures and Quran
recital classes. In 2017, the CDA installed sensors in homes of Emirati elderly living alone in
Dubai in order to monitor their condition remotely and provide care and emergency assistance
when needed.
Chart 11 Seniors in Focus 2016-2030
HOUSE AND HOME
the Home Space

 Although state policy encourages large families of six to eight children, the trend has been
towards smaller family units. Nuclear families are taking the place of extended families –
partly due to growing urbanisation and a higher number of working women. Since as much as
88% of the country’s 1.6 million households were classified as urban in 2017, apartments
accounted for over 60% of all dwellings in 2017. The average household had 5.5 people in
2017 (down from 6.3 in 2011). This is partly because migrants, who make up the majority of
the population, are often forced to live together – sometimes in large groups – to cut costs.
Just 2% of households were single-person households in 2017, reflecting the high cost of
housing and the fact that Emirati women live with their families until marriage. Over 50% of
households consist on couples with children.
 In 2017 half of dwellings were owned and 46% rented. House prices are relatively high,
although the real estate market has been slowing since 2014. There is still a substantial
demand for luxury apartments to house affluent Emiratis and high-skilled expats. However,
there is a dearth of affordable housing for middle-income consumers, who increasingly aspire
to owning their own properties. According to HSBC’s Beyond The Bricks survey of 2017, 82%
of UAE respondents said they wanted to buy a home in the next five years, versus a global
average of 73%. The main hurdles include insufficient salary (cited by 62% of respondents)
and expensive down payments (42%). With first-time buyers required to pay up to 25% of a
property’s value upfront, it is not surprising that half of millennial homeowners in the survey
had had to ask parents for financial support (the highest percentage globally. Owning a home
still remains out of reach for low-income consumers, although the Abu Dhabi government
recently agreed to start building a range of “high-quality and affordable accommodations” for
low-income groups at rents ranging from AED917-AED1,563 per month.
 The UAE is highly advanced when it comes to smart homes. In line with the government’s
“smart cities” initiative, it already has the highest fixed broadband penetration in the region
and 90% of the population has access to either a 4G LTE or WIMAX mobile network. This,
combined with the substantial population of high-income consumers, has led to growing
interest in smart appliances. A spokesperson from telecom provider du, which launched its
range of Smart Home Services (including home automation, home monitoring and home
networking services) in 2017, told The Khaleej Times, "As a progressive nation with a high
youth population, UAE consumers are used to being constantly connected”.
Chart 12 Home Ownership 2016-2030
Source: Euromonitor International from national statistics
Chart 13 Households by Type 2016
Chart 14 Households by Urban and Rural 2016-2030
Running Costs
 Expenditure on utility bills dropped sharply from 2011-2016, with average per household
spend on electricity and gas declining in real terms by -27% (to AED15.412) and 17% (to
AED4,718), respectively. Interest in energy-efficient white goods has soared, as large
appliances rated A+ or above have become more widely available and as consumers have
become more price sensitive and aware of their carbon footprint. Air conditioning is a major
expense in the UAE, due to its very hot climate (summer temperatures can reach 50°C).
Consumers have shifted to more energy-efficient units, partly due to the introduction of
mandatory energy-efficiency rankings and additional fees on products with lower efficiency
since 2013. Nevertheless, household penetration of split air conditioners remains low, as most
people live in apartments with central cooling systems provided by their building or compound
management.
 As part of its vision to become a global “smart city”, Dubai has launched a number of
initiatives and technologies to improve the lives of its residents. The d3 district, a flagship
smart city project, uses technologies such as smart metres, solar rooftop panels, energy
dashboards and electric car charging stations to reduce living costs and maximise
convenience. For example, a smart Wi-Fi system monitors people movement and energy
consumption in each building and data is displayed on energy dashboards to enable tenants
to reduce their energy consumption by 12%-30%.
 In mid-2016, it was reported that 500 villas in Dubai’s Sustainable City development had
started producing their own electricity using solar power panels, as part of Dubai’s Clean
Energy Strategy. Anwar Zebn of City Solar told UAEinteract, “The smart design of the villa
along with the application of energy-saving solutions, such as insulating materials, solar water
heaters, and energy-saving home appliances such as refrigerators, washing machines and
lightings, will all contribute to reduce the energy consumption to 50% in each villa". Other
solutions being introduced include the separation of “grey” and “black” water, and recycling
grey water for community irrigation.
Chart 15 Household Running Costs 2016-2030
Source: Euromonitor International from national statistics/UN/OECD

Note: In constant 2016 prices
SPENDING AND SAVING
Attitudes Towards Spending

 With the introduction of VAT in January 2018 residents are expected to curb their spending.
According to local newspaper, The National, residents said that they planned to cut back their
spending to balance out the effects of the tax. One expat said that she had started a personal
drive to become thriftier with her money by planning meals and taking a packed lunch to work.
“I’m giving travelling to the UK for the winter break a miss this year,” she said. “And I’ve cut
down my nail salon trips, which are going to get more expensive”. According to a
yallacompare (price comparison website) study, “One in three UAE residents put off big
purchases, such as cars or houses, in 2017. However, of these, 39% will still make a big
purchase this year [2018] despite VAT being applied”.
 A 2017 study by Zayed University found that levels of materialism among both Emiratis and
high-skilled expats were high on the global Richins Materialism Scale. Much of the country’s
wealth (80% of income) is concentrated in the two largest emirates – Abu Dhabi and Dubai.
However, the recent downturn has made consumers more cautious about spending and many
are choosing to shop abroad or pick more affordable luxury brands, such as Michael Kors and
Kate Spade. Newly established residential neighbourhoods, such as My City Centre Al
Barsha, offer high-income Emirati consumers a one-stop shopping destination for
convenience.
 According to the UAE Central Bank the country remains a 75% cash-based economy. This is
partly because consumers do not trust electronic payment systems and also because many
low-income migrant workers are unbanked. However, according to an article in The National
in August 2017, “Despite the focus on cash, the UAE’s young and “digital-minded” population,
deep smartphone penetration and government smart economy drive make it a “perfect storm”
for increased mobile wallet adoption, says Paul Clarke, head of product and innovation at
regional payment solutions provider Network International”.
Attitudes Towards Savings

 The savings ratio in the UAE is typically higher than the regional average. In 2016, savings
were 15% of disposable income, having remained broadly stable since 2011. An ageing
population ensures that demand for savings products is growing. However, many low-income
migrants are unable to save, as any spare money is typically sent home to families in their
home countries.
 There is strong demand for Islamic savings accounts, which are compliant with Sharia law.
These do not technically pay interest, rather they pay savers an “expected profit rate”. Islamic
mortgages are also designed not to pay interest, with the bank essentially buying the house
and selling it to the customer in instalments. According to a 2017 article in Zawya.com,
although 76% of residents are Muslim, Islamic banks hold only 19% of banking assets.
Nevertheless, Emirates Islamic’s 2017 Islamic Banking Index showed that consumer uptake
and perception of Islamic banking products and services had risen for the third consecutive
year, with 52% of the population possessing an Islamic banking product.
 According to a recent report by Payfort an Amazon-owned company and published in Gulf
News in October 2017, nearly 47% of the population are in debt and 13% are looking for a
loan. Their research found that almost 3 in ten admitted that they’re not able to save any
money at all. The majority of residents (38%) do manage to save some money, but only
around 10% of their monthly income.
Chart 16 Disposable Income and Savings 2011-2016

Note: in constant 2016 prices
SHOPPING
Main Household Shop

 Grocery shopping is typically carried out on a weekly basis and has become a family-
orientated experience and is mostly carried out in big hypermarkets and supermarkets. These
formats accounted for 56% and 20% of total grocery sales, respectively, in 2017.
Hypermarkets are typically located inside shopping malls and are often open 24 hours a day.
However, most shops in the UAE close during Juma (Friday) Prayers (11.30-13.30) and all
shops are required to be closed during prayers in northern emirates such as Ras Al Khaimah.
Consumers are attracted to hypermarkets’ lower prices, strong promotions and discount
offers, as well as their air-conditioned spaces and parking facilities. Consumers also enjoy the
wide range of products offered by hypermarkets to cater to the needs of the country’s many
different cultures and the growing interest in healthy, organic, additive free and ethical foods.
 With lifestyles ever more fast-paced, consumers are looking for convenience and
accessibility. While weekly trips to larger stores are still the norm, demand for smaller-value,
more frequent trips is also growing—especially in the ever-expanding residential zones. The
free home delivery service offered by convenience stores is also appealing to busy
consumers and the growing number of working women. Although convenience stores still
accounted for just 2% of retail sales in 2016, they have expanded rapidly with the number of
outlets rising from 209 in 2012 to 313 in 2017.
 There has been a strong trend towards buying groceries online more recently, especially
among young professionals, as the sector has developed and the offer improved to include
fresh items. Although still in its infancy household spending on online food and drink
increased by nearly 30% over 2015 to 2017. App-based delivery services are becoming
popular among consumers, especially as more grocery retailers, such as Carrefour and
Souq.com, started offering these services in 2016. Third party online grocery platforms are
providing same-day deliveries to customers. Apps such as “InstaShop” and “Clip the Deal” are
also being used by online consumers to find the best prices and discounts when placing an
order for groceries online.
Chart 17 Household Shop by Retailer Type 2016
Source: Euromonitor from trade sources/national statistics

Note: In Constant 2016 prices
Shopping for Big-ticket Items and Personal Goods

 For big ticket items, consumers like to compare prices both offline and online and often delay
purchases to benefit from discounts during Ramadan or special events like Dubai Shopping
Festival (December-January), Dubai Summer Surprise (July-September) and White Friday
(November). Although online shopping is growing rapidly, most consumers still visit malls to
buy big tickets items in specialist outlets, mixed retailers and hypermarkets. Many prefer to
buy electronics such as LED TVs and home theatre systems in hypermarkets as they offer
competitive discounts, private label products, promotions during special sales periods and
free home delivery services. Big box concept stores such as Sharaf DG (electronics), whose
specialist advice appeals to many consumers, are also popular. Many are also attracted by
retailers’ payment plans and loyalty programmes (eg, E-Max’s VIP cards, which offers various
discounts, delivery and extended warranties).
 While high-income expats and Emirati consumers enjoy shopping for personal goods in luxury
department stores such as Harvey Nichols and Bloomingdales, those on low-incomes prefer
value stores such as Tchibo and Brands for Less. As consumers have become more cost-
conscious while retaining a penchant for big brands, they are also increasing visits to outlet
centres such as Dubai Outlet and the newly opened The Outlet Village in Jebel Ali Dubai,
where they can find discounts on prestigious brands.
Shopping Online
 Online shopping is burgeoning as a result of the high level of internet connectivity, the
increasing penetration of smartphones and tablets, rising consumer confidence in online
retailers, more secure online transactions and lower prices through online retailers such as
Souq.com. From 2012-2017, online purchases grew in real terms from an average of
AED1,103 per household to AED3,616, with as much as 40% of this carried out via mobile
phones. Store-based retailers are also adopting an omni-channel strategy, including mobile
shopping apps, which has expanding their consumer base. Often, consumers will select a
product online, go to a physical store, examine the product physically and order online to take
advantage of lower prices. Similarly, consumers may look at products online to enable them
to find products more easily in stores.
 According to a recent survey by Awok.com, 46% of Dubai residents purchased goods online,
compared to just 27% in Abu Dhabi and 10% in Sharjah. With young consumers aged 25-34
making up 65% of the country’s online shoppers. The same survey found that more than half
of online transactions in the UAE are done on a smartphone.
 Cash on delivery remains the dominant payment method for purchases made online despite
the various offers and discounts available to consumers for payments made via a card,
because many do not like to share personal information over the internet. However, they are
gradually beginning to adopt online payment platforms such as PayFort and PayPal and are
using mobile contactless payment apps such as Beam.
Chart 18 Spending on Internet Retailing 2016
Source: Euromonitor from trade sources/national statistics

EATING AND DRINKING
Eating Habits
 With the UAE being home to more than 200 nationalities and expats making up 88% of the
population, there is a huge diversity of cuisines in the big cities and eating habits vary
considerably. Hypermarkets and restaurants offer a wide range of products to suit all tastes
and cultures. Most popular cuisines are Indian and Lebanese, followed by Italian and local
dishes.
 For Emiratis, lunch is the main family meal and is typically eaten at home at about 2pm. It
usually consists of fish, rice, meat, and a vegetable dish. Many Emiratis still use the traditional
style of eating with the right hand. With Islam being the dominant religion, there are strict
Muslim taboos against pork and alcohol, and meat must be slaughtered according to the halal
method. Shawarma (flat bread with meat) is a popular street food snack throughout the UAE.
 Rapid urbanisation and ever busier lifestyles have created a growing demand for
convenience. The majority of expats are engaged in long working hours and longer commutes
from work to home and are therefore left with little motivation to cook meals. This, combined
with high food prices in shops, means that eating out is very appealing. Spending on
foodservice such as fast food, home delivery, cafés and street kiosks has risen substantially
in recent years.
 The most common place for eating out is in shopping centre restaurants and food courts. Due
to the wide variety of languages and accents found in the UAE, telephone orders for
takeaways have been replaced by digitalised menus on online platforms – especially third-
party services such as foodonclick.com, talabat.com and 24h.ae.
 Greater nutritional awareness both among UAE nationals and expats is significantly impacting
eating habits and fuelling demand for naturally healthy and organic foods, both in the retail
and foodservice sectors. Organic food production is being boosted locally to fulfil demand.
Chart 19 Consumer Spending on Food by Type: 2016
Source: Euromonitor from trade sources/national statistics/Eurostat/UN/OECD

Chart 20 Total Consumer Spending compared to Spending on Food 2016

Drinking Habits
 Since alcohol consumption is forbidden its sale is highly regulated and limited to non-Muslim
consumers. Foreigners may consume alcohol at licensed establishments or at home if they
have a licence (for which applicants must prove they are non-Muslim, aged 21 or older,
earning more than AED3,000 a month and resident in the country). Alcohol is purchased from
designated shops where a permit must be shown. Since alcohol is subject to tax in Dubai,
many travel to other Emirates to buy it. The penalty for illegal alcohol consumption is either a
jail term of up to six months or a fine of up to AED2,000. Most bars and pubs are located in
hotels and appeal exclusively to Western expats and tourists. Beer (all imported) is the
dominant type of alcoholic beverage. Nevertheless, there is also a growing cocktail culture,
thanks to the opening of more bars and restaurants, and it has become trendy for millennials
to attend mixology classes and mobile cocktail workshops.
 The main types of soft drinks consumed in the UAE are bottled water (995 litres per
household in 2016), juice (288 litres) and carbonates (257 litres). Consumers living in
residential areas typically order bulk deliveries of bottled water. Most water is desalinated
rather than natural spring water, but there is a growing preference for Turkish mineral water,
which is sold at a slightly higher price point. Juice and smoothie bars have increased in
popularity, thanks to the greater interest in health. The recent ‘sin tax’ applied to energy drinks
and carbonated drinks is driving some consumers to find alternatives.
 With the UAE being a multicultural society, both coffee and tea are widely consumed (for
example, karak tea is especially popular among Indian, Pakistani and Bangladeshi
consumers). In foodservice, demand has shifted from traditional coffee shops to modern
outlets with increased focus on ambience and customised service offerings, most of which are
located in Dubai, Sharjah and Abu Dhabi. While Emiratis still drink the national beverage,
gahwa (Arabic coffee), at home, it is these days rarely consumed in public.
 The coffee culture has boomed as local and international brands have expanded their reach
and offering in the UAE. There are now over 4,000 tea and coffee houses throughout the
country. Saeed Sultan Al Dhaheri told the Khaleej Times, "Aside from being an inherent part
of the Arab culture, a leisure pastime and a business pre-requisite, coffee nowadays is being
appreciated as more of an experience within a beverage rather than just a daily caffeine fix”.
Nevertheless, the high cost of drinks in coffee shops puts them out of reach for much of the
low-income population. A Gulf News report in 2017 claimed that a cappuccino from a Dubai
café costs more on average than in nearly all of the world’s most expensive cities, at AED16.
Chart 21 Consumer Spending on Drinks by Type: 2016

Chart 22 Total Consumer Spending compared to Spending on Alcoholic and Non-

Alcoholic Drinks 2016

GROOMING AND APPEARANCE
Investing in Yourself: Female Personal Grooming and Hygiene

 For cultural reasons Emirati women traditionally wear the abaya – a long flowing black gown
that can be plain or decorated, and a hijab. These can include a shela (a light headscarf) to
cover their hair; or the more traditional the gishwa (a black veil that covers the entire face) or
burqa (which only shows the eyes). However, it is common for women to wear Western
clothing under their abayas. Shelas are usually black, but many women opt for designer
scarves such as Givenchy or Dior, which can be matched to their handbags. Women are
increasingly influenced by fashion bloggers, vloggers and websites such as
emirateswoman.com, which offer hijab styling tips and beauty advice.
 Consumers are concerned about personal grooming and women have a comprehensive skin
care routine. Through the influence of blogs and social media, they are also becoming better
informed about products and skin types and are upgrading to premium and masstige brands.
The UAE has traditionally relied on natural ingredients in beauty products, so this is nothing
new. However, in line with a greater interest in health and due to falling prices, demand for
organic products has grown. Popular ingredients include argan oil, rose oil, shea butter, olive
oil, honey, aloe vera and cocoa.
 Emirati women usually wear make up to accentuate their visible features, typically using Kohl
on the eyes. Demand for halal cosmetics (which are free of alcohol, pork and animal
enzymes) is growing as new brands are introduced and promoted in the UAE. Emirate women
are also fond of henna tattoos and jewellery. According to an article in Theculturetrip.com,
jewellery is an essential part of their national dress. It stated, “In the past, women carried all
their savings in the form of jewellery, in the absence of banks. Women wear everything,
including gold and silver bracelets, earrings, rings, anklets and more”.
 Cosmetic surgery is also a growing business, driven partly by a rise in medical tourism but
also by increasing demand from UAE nationals. According to a 2017 report by the American
Academy of Cosmetic Surgery Hospital (AACSH) in Dubai, patients were of more than 100
nationalities in 2016 but the majority of new patients were Emiratis. Dr Jeehan Abdul Qadir
told the Khaleej Times, “There is an increasing shift towards value when it comes to aesthetic
medicine, with patients opting for higher quality services and tailored care management
solutions based on specific requirements”. Patients’ overwhelming concern is to look young or
slimmer, with liposuction a leading procedure.
Chart 23 Consumer Expenditure on Clothing, Footwear and Personal Care by Men and
Women 2016
Source: Euromonitor International from national statistics/Eurostat/UN/OECD
Investing in Yourself: Male Personal Grooming and Hygiene

 For men, the national dress is a key part of Emirati national identity and goes back hundreds
of years to Bedouin times. Most men wear their national dress regularly as it is well suited to
the country’s high temperatures and dusty climate. It consists of the kandura (or dishdashi), a
long white cloak (browns and greys are also worn in winter) and the guthra (headscarf), which
is typically white or red and white checked and can be worn in different ways to reflect status.
According to an article in Theculturetrip.com, “It is common for Emirati men to own over 50
kanduras and to change them throughout the day, in order to keep their look crease-free and
fresh”. Normally, na-aal (traditional sandals) are worn, although in Dubai it is more common
for mean to wear shoes. For reasons of convenience, there has been a strong trend in recent
years away from tailoring services towards purchasing traditional attire online.
 Grooming has become an essential part of men’s lifestyle, whether for work or social events.
Being well-groomed denotes social class and is an essential element for career advancement.
An average of AED696 per household was spent on male grooming products in 2016. Skin
whitening products are popular among men, who are influenced by wider availability and
advertising of such products. For example, Emami’s Fair & Handsome has been promoted by
Indian celebrities such as Shah Rukh Khan. Men are also turning to cosmetic surgery to
enhance their looks, with hair transplants being one of the most popular treatments.
 Emirati men prefer to trim their beards rather than shave them and aim to achieve a precise
beard shape with sharp lines and corners. Demand for electric shavers is very developed,
with high-income consumers usually preferring these products over the traditional wet shaving
routine. As sporting a beard has become more fashionable worldwide, new barbershop
concepts are gaining popularity. Barber Nidal Rafiq Malaeb told The National in 2017, “It has
become culturally acceptable [for men] to take pride in their looks just as much as women.
Not only is there a religious and cultural aspect as it is seen as a sign of maturity, but it is
fashionable to have a well-groomed beard in a cool shape ... first impression is everything.”
The trend has driven demand for beard oils, waxes and balms. Organic products are also
gaining popularity, with new companies such as Dubai-based Organic Beard Co starting to
cater to this demand. According to the company, oud, mint, lavender, manuka and wood are
the most popular fragrances for beard oil.
Chart 24 Total Consumer Expenditure Compared with Spending on Clothing, Footwear

and Personal Care by Men and Women 2016
Style Icons and Celebrity Influences

 Consumers are increasingly influenced by celebrities, thanks to the growing number of high
profile endorsements and the proliferation of beauty and fashion blogs. Plastic surgeon Dr
Luiz Toledo told the Khaleej Times that many Emirati women seeking cosmetic surgery want
“small and upturned noses like Haifa Wehbe and Nancy Ajram”; while barber Nidal Rafiq
Malaeb told The National in 2017 that clients often ask to emulate the beards of famous
actors and athletes, saying “George Clooney is quite popular for a clean shaven look, David
Beckham for a natural beard and Brad Pitt for the goatee look”.
 With the internet giving Emirati women an opportunity to engage with a female audience,
beauty bloggers in the region have a strong influence on their followers and some of them,
like Huda Beauty, have become highly influential. UAE national Halima Aden is one of the
world’s biggest hijabi models and is a popular fashion-influencer in the country, being the face
of brands such as Nike. Middle Eastern royals are also much admired and key style icons for
Emirati women, including Jordan’s Queen Rania Al Abdullah and the UAE’s Princess Haya
bint Al Hussein. The influence of American celebrities like Kim Kardashian is also significant
among women with respect to body image and makeup trends.
HEALTHY AND ETHICAL LIVING
Attitudes To Health and Wellbeing

 Despite a greater interest in health, the country still has one of the highest obesity rates in the
world. As much as 35% of the population – and 45% of women – were classified as obese (a
BMI of at least 30kg/sq m) in 2016. This has been blamed partly on the higher dependency on
restaurants that use high amounts of fats, oils and sugar, and partly on sedentary lifestyles.
For weight loss, consumers prefer traditional diet plans and exercise, while mobile apps such
as My Fitness Pal and activity trackers such as Fitbit are becoming increasing popular ways
to achieve goals.
 High obesity levels are bringing a rise in associated problems such as Type 2 diabetes and
heart disease. Over 18% of the population aged 20-79 suffered from diabetes in 2016 and it is
thought that many more cases go undiagnosed. In addition to a lack of physical activity, poor
dietary habits and high smoking levels, there is also thought to be a possible genetic
predisposition to diabetes among the Emirati population. In 2016, Dr George Cherian told
fridaymagazine.ae, “Earlier it was seen in people above the age of 50. These days there are
innumerable cases of youngsters who have diabetes...now children as young as 13 years of
age develop the condition.” A 2017 study from a UAE university found that coronary artery
disease (CAD) is more common among wealthy people. Those earning more than US$5,300
per month were found to be “significantly” more likely to have CAD than those earning less
than US$1,300. The study also found that people in rural areas were more at risk of heart
problems, reflecting a lack of access to medical care.
 The rise of social media has led to greater health awareness and “Clean eating” is an
emerging trend among young professionals, who are either cutting down on or eliminating
processed food from their diet and focussing on the consumption of natural foods such as
oatmeal, quinoa, brown pasta, spinach and kale. Some of these are dependent on meal
delivery services: Emirati Aisha AlMulla told Khaleej Times in 2017, "I don't really know how to
cook and that made it harder, so what I decided to do was register with a company that sent
healthy pre-prepared meals to the workplace".
Chart 25 Health-related Spending and Healthy Life Expectancy for Men and Women
2016 – 2030

Note: In Constant 2016 prices
Chart 26 Obese and Overweight Population 2016 and 2020
Ethical Living
 Despite government efforts to adopt sustainable living as a standard in terms of
transportation, energy consumption and food habits, environmental awareness is still
relatively low. A 2017 study by the United Arab Emirates University (UAEU) revealed that
49% of residents were not conscious of climate change and the way unrestrained human
activities contribute to global warming. Women are less aware than men, while 40% of all
respondents said they disagreed that global warming is caused by human behaviour.
 According to a Gulf News report, while the UAE was expected to produce 29 million tonnes of
waste in 2017, only around 10% of residents actively recycle. The high consumption of bottled
water is a particular concern as most plastic bottles end up in desert landfill sites.
Environmental groups are persuading consumers to use filtered water from taps instead of
bottled water. Nevertheless, the UAEU study found that high school students were more
aware of climate change and global warming than undergraduate and postgraduate students,
indicating that better education is beginning to make an impact. Between 2015 and 2017, 135
schools participated in an Abu Dhabi initiative to implement environmental projects and
develop measures to improve sustainability through Eco Clubs.
 Euromonitor International’s GCT survey found that only 18% of UAE respondents agreed with
the statement “Buying eco-conscious/ethically-conscious products makes me feel good”,
compared with 26% of all other respondents. However, perceptions are gradually changing
and there is now growing demand for sustainable and ethically traded products. The National
reported in 2017 that fashion designers and retailers are introducing more eco-friendly
products. Following the launch of Splash’s “I am sustainability” line, which includes materials
made of organic and recycled cotton, regenerated polyester and sustainable fibres like
Tencel, CEO Raza Beig told The National, “The response to date has been positive and the
consumer is becoming aware of the benefits of eco-friendly fashion”.
Sport and Fitness

 According to a 2017 report by the International Health, Racquet & Sportsclub Association, just
6% of the population were members of a health club, versus almost 20% in the US.
Nevertheless, more people are taking up sports and exercise in line with government efforts
to encourage a healthier lifestyle. A 2017 survey by Vita Coco found that over 50% of
consumers worked out at the gym regularly, 46% ran or jogged and 39% swam. Personal
trainers are reportedly in greater demand: Abbey Sketch told AB Lifestyle in 2017, “One of the
pros of the UAE fitness industry is that more people are interested in private training and yoga
sessions, because it is common to expect services to be delivered to your doorstep”.
 A growing number of UAE nationals are taking up cycling, which was previously considered a
sport for expats. Cycling tracks are opening up and groups are being created on Instagram,
such as the Rabdan Cycling Team, which sees 20-30 men and women of all nationalities ride
together at weekends. Female-only cycling groups are also emerging. Roudha Al Awadhi,
founder of UAECyclingGirls, told The National that many more female university students are
joining the group as Emirati girls are now freer to pursue their own interests; while Sawsan
Jumah, founder of the group Emirates Evolutions, told The National, “The ladies feel more
free to remove their hijabs there”.
 With so many different nationalities residing in the UAE, watching sport is a popular pastime
that brings everyone together. The most followed sporting events include football, cricket, golf,
rugby, basketball, tennis and motorsports. Traditional Emirati sporting events such as camel
racing, horse racing and falconry are also popular. The Vita Coco survey of 2017 found that
43% of football fans prefer to watch the game, while 26% like to play it.
LEISURE AND RECREATION
Leisure Time
 Achieving a work-life balance is difficult in the private sector due to long working hours, and
responding to emails and work requests outside business hours has become increasingly
common. A study conducted by a Middlesex University Dubai student in 2017 found that at
least 20% of respondents took their work home and 50% had worked during their holidays.
Nevertheless, flexible work arrangements are becoming more common: Alex Malouf, a British
marketer, told Gulf News, “I’m fortunate to be able to spend a good deal of time working from
home, which allows me to spend more time with family...I put in about 60 hours a week”.
 Known as the “playground for the rich”, there is no shortage of leisure activities in the UAE.
The country boasts the world’s tallest building, the largest artificial island and some of the
biggest shopping malls with a range of entertainment facilities. Emiratis are very family-
orientated and enjoy spending time together. A 2017 survey by Vita Coco found that 39% of
consumers like to eat out in restaurants in their spare time, while 37% prefer watching
television with friends. Socialising, shopping and the cinema were also ranked highly. From
November to February, when the weather is not as hot, visiting beaches and parks are
popular activities.
 The country has a very strong mall culture. Shopping, eating and other forms of mall
entertainment are a favourite pastime of Emirati consumers, expats and tourists alike –
especially in the hot summer months when they offer relief from soaring temperatures that
can reach over reach 50°C). Malls are open from early in the morning until as late as 1am,
and sometimes even 24 hours a day. The Dubai Mall, which covers a massive 1.1 million
sq/m, includes more than 1,200 retail outlets, as well as an aquarium, theme park and ice
rink; while the Mall of the Emirates offers a theme mark, 14-screen cinemas and an indoor ski
slope.
 Since 94% of households had access to the internet in 2016 (69% via a mobile phone), web
and app-based activities such as social media, gaming and music streaming are very
common ways to spend leisure time. According to a report by Hootsuite and We Are Social
released in early 2017, the UAE and Qatar, had the highest social media penetration rates
globally, at 99%. The UAE had 8.2 million social media users, with 88% of the population
accessing it via mobile devices.
Chart 27 Household Possession of Selected Home-Tech and Mobile Phones 2016;

Percentage of Households with Internet Access
Source: Euromonitor International from International trade sources/Telecommunications Union/OECD/national

statistics
Chart 28 Total Consumer Expenditure compared to Spending on Leisure and

Recreation 2016 – 2030
Vacations
 Residents of the UAE are entitled to 34 days of annual leave (22 days of paid holiday and 12
days of public holidays). The number of both domestic and international leisure trips grew
strongly over the 2012-2017 period to reach 6.5 million and 3.2 million, respectively. Most
people travel in December/January and the largest proportion of travellers were aged 35-49
(37%).
 Domestic tourism showed the strongest growth of 44%, with most residents visiting Dubai and
Abu Dhabi. Dubai offers many events, such as Dubai Summer Surprise, to promote domestic
shopping tourism during the summer when overall inbound tourism is slightly lower. Theme
parks such as Dubai Global Village, Dubai Parks and Resorts and Al Maryah Island in Abu
Dhabi are also a major attraction for domestic tourists, who often benefit from discounts and
free parking.
 Both Emiratis and expats typically travel to other countries during the summer to escape the
intense heat. Thanks to its holy significance, Saudi Arabia is the leading destination for
outbound trips, with a share of 30% in 2017. Travel to Europe received a boost in 2015 as the
European Parliament waived visa requirements for UAE nationals. Italy, France, Austria,
Switzerland and the UK were the most popular European destinations in 2017.
Chart 29 Total Consumer Expenditure compared to Spending on Package Holidays

2016 - 2030
Opportunities for Celebrations and Gift-giving

 The most significant public holidays in the UAE are Ramadan, Eid and Hijra, along with
National Day celebrations on 2nd December. During Ramadan, eating and drinking in public
are forbidden until after sunset. Iftar is celebrated with families gathering to eat specially
prepared meals. It is customary for guests to take Arabic desserts or dates to such events.
Another Emirati tradition is Hag Al Laila, whereby children mark the start of Ramadan by
knocking on neighbours’ doors to ask for sweets. In preparation for the day, many families
flock to stores to stock up on traditional sweets and nuts.
 National Day is the most important secular celebration and is marked by parades, fireworks
and street festivals. Schools and colleges dress in traditional attire and perform local dances.
International celebrities may also take part in the events through special concerts and recitals.
Given the UAE’s huge expat population, many other international customs and festivals are
celebrated, including Diwali, Halloween, Thanksgiving and Christmas.

Consumer Lifestyles in The United Arab Emirates

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Consumer Lifestyles in The United Arab Emirates

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CONSUMER LIFESTYLES IN THE

UNITED ARAB EMIRATES

LIST OF CONTENTS AND TABLES

Main Household Shop ............................................................................................................ 17

CONSUMER LIFESTYLES IN THE

Source: Euromonitor International

TOP FIVE CONSUMER TRENDS

Consumer Spending Expected To Rebound

Widening Rich-poor Divide Defines Consumer Choices

Greater Empowerment of Female Consumers

Social Media Use Amongst the Highest in the World

Consumers Embrace Convenience

Babies and Infants (0-2 Years)

Chart 2 Babies and Infants in Focus 2016-2030

Source: Euromonitor International from national statistics/UN

Chart 3 Kids in Focus 2016-2030

Source: Euromonitor International from national statistics/UN

Chart 4 Tweens in Focus 2016-2030

Source: Euromonitor International from national statistics/UN

Chart 5 Teens in Focus 2016-2030

Source: Euromonitor International from national statistics/UN

Young Adults (18-29)

Chart 6 Young Adults in Focus 2016-2030

Source: Euromonitor International from national statistics/UN

Middle Youth (30-44)

Chart 7 Middle Youth in Focus 2016-2030

Source: Euromonitor International from national statistics/UN

Chart 8 Mid-Lifers in Focus 2016-2030

Source: Euromonitor International from national statistics/UN

Chart 9 Late-Lifers in Focus 2016-2030

Source: Euromonitor International from national statistics/UN

Chart 10 Life Expectancy 2016-2030

Source: Euromonitor International from national statistics/UN

Chart 11 Seniors in Focus 2016-2030

Source: Euromonitor International from national statistics/UN

HOUSE AND HOME

the Home Space

Chart 12 Home Ownership 2016-2030

Source: Euromonitor International from national statistics

Chart 13 Households by Type 2016

Source: Euromonitor International from national statistics

Chart 14 Households by Urban and Rural 2016-2030

Source: Euromonitor International from national statistics

Chart 15 Household Running Costs 2016-2030

Source: Euromonitor International from national statistics/UN/OECD

SPENDING AND SAVING

Attitudes Towards Spending

Attitudes Towards Savings

Chart 16 Disposable Income and Savings 2011-2016

Source: Euromonitor International from national statistics

Main Household Shop

Chart 17 Household Shop by Retailer Type 2016

Source: Euromonitor from trade sources/national statistics

Shopping for Big-ticket Items and Personal Goods

Chart 18 Spending on Internet Retailing 2016

Source: Euromonitor from trade sources/national statistics

EATING AND DRINKING

Chart 19 Consumer Spending on Food by Type: 2016

Source: Euromonitor from trade sources/national statistics/Eurostat/UN/OECD

Chart 20 Total Consumer Spending compared to Spending on Food 2016

Source: Euromonitor from trade sources/national statistics/Eurostat/UN/OECD

Chart 21 Consumer Spending on Drinks by Type: 2016

Source: Euromonitor from trade sources/national statistics/Eurostat/UN/OECD