Survey reveals change in Qataris’ spending habits

Qatar loves its luxury. It’s a country where you’d find high-end, designer products that only the elite could buy without burning a hole in their wallet, the latest racing cars zooming across the streets and of course, the latest technology being casually flaunted around.

In fact, according to the data collected by a survey conducted by American Express Middle East across five GCC countries, it has been found that the residents of Qatar spend more on luxury goods and experiences than the rest of the region.

To be more precise, approximately 12% of every household’s average income, that is more than $4,000, is spent on some form of luxury.

This has been found in spite of a noticeable shift in spending habits with people focusing more on spending on the essentials.

The American Express Middle East Spending Survey was conducted by GfK and involved high income households in the UAE, Oman, Bahrain, Qatar and Kuwait.

The research also revealed that nearly a quarter (24%) of respondents cut back on planned spending in the last 12 months.

Over three quarters of respondents (79%) said they spent more on transport, and 74% paid more on rent. Budgets for socialising were also squeezed with 42% spending less on this category.

“The economic headwinds across the region are affecting many and we have seen a significant switch in how people are using their disposable income. Despite that, we’re still seeing buoyant spending on luxury experiences and goods,” said Mazin Khoury, Chief Executive Officer, American Express Middle East.

When it comes to Qatar, 26% spent less on dining out 2015 while 72% spent more on food and drinks for consumption at home – a clear shift in spending habits.

Similarly, in Oman 88% spent more on food and drinks for consumption at home while 41% cut back on socializing. While in Kuwait, 85% spent more on food and drinks for consumption at home while 56% cut back on socializing.

As with everyday spending, there is also a change in the way people spend on luxuries. In Qatar, nearly a quarter (24%) of respondents plan to prioritize personal wellness in the next 12 months with fine dining the category to lose out.

(Cover image courtesy: Ameer Abdul Razak)