A snapshot survey conducted by Policybazaar.ae, UAE’s fastest-growing insurance and finance marketplace, surveyed approximately 3000 respondents to analyze how consumers are looking to course-correct their personal finances. As per the findings of the survey, the spending and purchasing habits of residents witnessed a noteworthy change post COVID. Around 28% of the respondents prioritized needs over wants. While 31% gave priority to shopping only when there were offers and discounts available in the market.
The survey also highlights how buyers post-COVID spent only on essential products like groceries, rent, utilities, transportation, healthcare, and wellness products as the pandemic was a wake-up call for them to save and invest money for contingencies. When questioned about the mode of payment that was preferred for purchasing these essential products, the respondents highlighted that 67% mainly opted for contactless payments (majorly, credit cards) while only 17% preferred buying through cash.
The survey findings also revealed that compared to 2019 and 2020; people in the UAE have started saving and investing more than ever before. About 41% of those whom Policybazaar.ae surveyed, strongly believe that accumulation of wealth would save their children/dependents from unprecedented disruption. Furthermore, 29% of respondents said that due to fear of deteriorating health/existing medical conditions they have started paying more attention towards reducing discretionary spending and creating an emergency fund.
Consumers in the UAE are increasingly looking for ways to save money, and more than half i.e., around 62% have stated how they are now buying individual health insurance with critical illness riders and 12% are investing in stocks, fixed deposits, and other saving schemes or cryptocurrency. While 16% of respondents are still paying debts, but the majority of the consumers in UAE are optimistic about a quick economic recovery in the country.
Commenting on the survey, Neeraj Gupta, CEO Policybazaar.ae, said, “Customers are becoming more mindful of how they should spend their money and adopt new habits to save/invest for future. The result of this survey highlights UAE consumer sentiments, spending behavior, and expectations, to be better prepared. It is heartening to see an increased preference for enhanced health covers along with other investment options.”