UAE expenditure saw 17% increase in the month of Ramadan as well a 7% increase in case of foreign visitors
It is evident that the people of Dubai have been buying smart for their Eid preparations this year. Findings from a new study suggest that the overall electronic spending via cards have increased 14% in the month of Ramadan.
Network International, a company dealing with smart payment methods, has recently reported that card spending has increased 17% within the UAE this year. Adding to the figures is the expenditure of tourists, which rose 7% during said period.
Payments made via debit and credit cards issued in the UAE composed 75% of the total expenditure in Ramadan- the study inferred.
Tourists from the US and Canada spent about 7% of the net spending by visiting foreign nationals; followed by tourists from GCC. The latter made an electronic expenditure of about 3% of the total.
However, visitors from the rest of the world had relatively lower card spending rates. Russian tourists’ card spending dropped 30%, Germans reduced expenditure by 8% and the Chinese spent 22% less.
Growth-wise, visitors from KSA and the UK had the most significant increase in card expenditure according to the study. Also, Nigerians constituted about 3% of foreign electronic transactions in UAE.
Majority of these transactions were carried out in the hotels as the residents of UAE took advantage of the special staycation deals. Restaurants come second with a spending of 27% in Ramadan.
Yet, contrary to the usual trends, shopping complexes faced a challenge in sustaining such electronic transactions this year. Spending on jewelry, luxury watches etc. was same as last year, however Nigerians contributed to the rise of fashion item sales; which was 12%.
Household consumptions were on a rise in Ramadan as superstores saw an increase in card expenditure by 12%.
Compared to the previous year, services performed better overall. Electronic expenditure on public and professional services went up over 25%, largely witnessing domestic spending- according to the study.
Being one of the harbingers of a cashless society, the UAE is one of the top markets for international electronic payment firms such as Visa and MasterCard.
Concreting the fact, a recent revelation by MasterCard said that it has doubled the number of debit and credit cards in the Middle East and Africa to 100million in the last three years. UAE and Saudi Arabia were among the fastest growing markets for sales of debit and credit cards.