SPENDING TREND - DUBAI

Philippe Dauba Pantanacce - Snr Economist, Standard Chartered Bank Dubai

In a recent interview Philippe Dauba Pantanacce stated that the current global recession has hit consumer spending in Dubai. So are the purse strings being tightened? According to the outcome of this years Dubai Shopping festival the shoppers were still out to spend, proving that when the going gets tough, the tough still go shopping.

Pantanacce commented on the 2009 dramatic change in housing due to the collapse in rent. He noted that Dubai is going through the process of stabalisation between contradictory forces. We are now seeing rent in Dubai differentiate area to area whereas before there was a board nominal cost. Rent is now as you would expect to find it within the global hub i.e. areas with better housing, better amenities and a higher standard of finishes command the higher scale rent charge.

Consumers have now migrated into Dubai from the surrounding Emirates, taking advantage of the lower rental costs.

Rent dropping in Dubai is a welcomed change since the salaries have also dropped while the cost of living is on the rise.