The Impact of Covid-19 Pandemic on Customers’ Spending Behavior in the United Arab Emirates

Abstract

The Covid-19 pandemic has significantly impacted the global economy, causing consumers panic, mobility restrictions and resulting in job losses. Using survey data from 300 respondents, this study examines the effect of a Covid-19 pandemic on consumer spending behavior in the United Arab Emirates (UAE). The study finds that the spending behavior of UAE residents during the pandemic has not changed much compared to the pre-pandemic period, despite that some have lost a portion of their income. The study also reports that customers in the UAE have experienced lower panic-shopping behavior during the pandemic. In addition, the findings indicate that about 57% and 51% of the respondents lack adequate savings such as emergency fund and insurance respectively. Generally, it can be concluded that customers in the UAE were able to stabilize their spending behavior with no significant changes in their general spending behavior. The stable spending of UAE customers during the pandemic can be explained by the high level of optimism customers have on the likelihood of economic recovery in the post pandemic period.