National Family Status Observatory - Abu Dhabi records decline in heads of households' bank borrowing, increase in expenditure

Abu Dhabi: The percentage of heads of households' bank borrowing in the Emirate of Abu Dhabi for the second quarter of this year amounted to about 55.8 per cent , which reflects a decline in bank borrowing compared to the results of the previous months of the same year, says a survey conducted by the DED's Studies Department in June. The survey was aimed at preparing the National Family Status Observatory in the Emirate. Based on these results, about 62 per cent of the persons surveyed pointed out that the main reason for obtaining a loan was to buy a car while over 25 per cent of the respondents said that they obtained loans in order to buy a house for the family. About 7 per cent of the respondents said that the loans were meant for their weddings and about 4 per cent of them got a loan only to travel. Compared to an average of about 20,652 Dirham during the month of March, the average total spending of the national family the month of May was of about Dh 22,960, which reflects an increase in household expenses. The results of the Survey of June 2013 also indicated an increase in the percentage of national families expecting an increase in their monthly expenses during the third quarter of 2013 to about 67.6per cent, whereas about 29 per cent of the sample surveyed is not expecting any increase in spending. The results of a survey among national families conducted in the month of March 2013 were different since the percentages were of about 53.4 per cent and about 43.4 per cent , respectively. This is due to the fact that the national families are expecting higher consumption expenditure during the second quarter of the year with the near-term holy month of Ramadan, the holiday period and the subsequent travel expenses. Also, the survey found that about 32.6 per cent of the national families in the Emirate of Abu Dhabi have children studying on their own expenses in schools, institutes or universities within the state with an average spending of about 50,000 Dirham annually, and about 28.1 per cent of the national families have children receiving private lessons with an average spending that reached about Dh 6224 during the three months prior to the survey opinion. As reflected by the results of the National Family Status Observatory for the second quarter of this year, the average number of heads of households' landlines is 1 line while the average number of their mobile phones is up to 4 lines and, during the three months prior to the survey, the value of their landline bills was of about Dh 1,155 while mobile phone bills during the same period reached about Dh 4,259. Also, about 39.4per cent of national heads of households have bought new mobile phones during the three months prior to the survey. The survey also indicated that about 84.4 per cent of the national families surveyed are owners of their houses and only about 15.6 per cent are tenants. About 24.9 per cent of the sample surveyed enjoys the benefits of housing and housing allowances that represent about 90.6 per cent of the rental value of the house with an average value of monthly rent of about 10,422 Dirham a month. The results of the National Family Status Observatory for the second quarter of 2013 show that the general price index reached about 74 points with an increase of 4 points compared with the same quarter of 2012 and national heads of households started feeling a significant increase in the prices of food commodities during the month of June 2013 in comparison with the survey carried out during the same month in 2012, measured by the price index and representing commodities (cereals, meat, oils and fats, milk and dairy products, and sugar.). Linking the survey's results with the Consumer Price Index (CPI) published by the Statistics Centre - Abu Dhabi, SCAD during the same period, the figures indicated a slight deceleration when the index for the food group reached about 139.99 points during the month of June 2013, compared to about 140.3 points during the same month in 2012. The sample of national heads of households surveyed noted an increase in clothing and related commodities prices during the second quarter of 2013 compared to the same quarter of 2012 and have also sensed an increase in long-term consumer goods prices during the second quarter of 2013 in comparison with the same quarter a year 2012. With regard to the results of the Indicator of Consumer Confidence, it is experiencing an improvement in the value of its long-term consumer goods sub-indicator (for UAE citizens) with about 97.44 points during the month of June 2013, compared to about 102.28 points during the month of June. From the point of view of the surveyed sample of national heads of households, the highest increase in food commodities prices during the time of the survey, compared to the previous three months, was the increase in meats of all kinds. When enquiring national families about their consumption pattern upon food prices increase, the results were identical to the results of the month of March 2013 and no change occurred in the pattern of consumption (a decrease in consumption) from the part of the largest proportion of respondents since most of the households had consumed the same quantity despite the high prices because these commodities are necessary and irreplaceable. A small proportion of respondents said they used other types of the same product with lower quality and lower prices, a smaller proportion said they rationalised their consumption of goods whose prices have increased from their point of view, and a very small proportion said they rationalised their consumption of other goods and services. With regard to clothing and toiletries group items, the general indicator reflected an increase in the awareness of UAE citizens of the changes in the prices of clothing and toiletry during the second quarter of 2013 compared to the same period in 2012. The general indicator for these group items reached 78 points during the second quarter of 2013 with an increase of 4 points compared with the same quarter of 2012. About 56 per cent of the heads of households referred to the high prices of clothing and related commodities, about 42% of the sample surveyed sensed steady prices, while only 2 per cent of the sample said the prices were low and 31% of the sample national families had the feeling that the prices of those goods increased and reduced their consumption. A large percentage of national families have shown higher consumption consciousness concerning perfumes and toiletry, with 52% of the respondents who had the feeling that the prices of those goods increased reducing their consumption, about 30% keeping consuming the same quantity of these item because they are, from their point of view, essential, and about 18 per cent saying they kept consuming the same quantity but at lower prices and quality. With regard to long-term consumer goods, UAE citizens awareness of the changes in prices of long-term consumer goods increased during the second quarter of 2013 compared to the same quarter of 2012 with an increase in the value of the group's indicator during the second quarter of 2013 by about 6 points compared with the same quarter of 2012 with about 72 points and about 66 points, respectively. The results of the survey showed that the average number of employed family members within the national family is 2 and also 34.3% of national families have a family member who has at least one income other than the main income from employment. The results reflected that a large segment of the national heads of households in their other incomes (other than the income from employment) depend on revenue obtained from the rental of real estate they own, in addition to the sale of crops and animal products from UAE family-owned farms and pension. The results showed that the largest proportion of national heads of household who earn incomes other than the income from employment in accordance with the above-mentioned sources, consider these incomes regular and on a monthly basis during the three months prior to the survey, which represents a tangible difference with the survey made during the month of March 2013. The survey results also showed that the item rent of real estate lived up from 8% in March 2013 to 28% in June 2013, while the proportion of the contribution of farms decreased by about 7 per cent in June 2013 compared to the first quarter. Percentages of income received in accordance with the repayment period with respect to leases and agricultural seasons differ from one farm to another. The results also showed that the average monthly spending for the three months prior to the survey performed in the month of June 2013 amounted to 22,356 Dirham, compared to about 26 293 Dirham during the three months prior to the survey made in March 2013. The results showed that the spending proportion on food, drinks and tobacco as well as spending on housing such as rent, water, electricity, gas, communications, furniture, maintenance, servants' expenses and other housing necessities represented about 43 per cent of the average total spending during the three months prior to the survey. Compared with the results of the Household Expenditure and Income Survey 2007/2008 of the Emirate of Abu Dhabi, it is clear that the average national family expenditure for the same items amounted to approximately 55per cent which is normal in view of the low rents after the global financial crisis and also the decrease in the indicator of consumer prices during the current period compared to the time of the survey. With regard to the problems faced by the national families in their areas of residence about 83.1per cent of national heads of households reported that they do not have any problem, while only the remaining 16.9 per cent reported that they are facing problems in their residential areas. At the level of the three regions of the Emirate of Abu Dhabi, the Western Region emerged as one of the main areas in which the population of national households is facing problems in their areas of residence as about 41.9per cent of the sample surveyed in the western region said that they face problems in the area of residence, 15.7 per cent in the city of Al Ain and about 12.4 per cent in the city of Abu Dhabi. The national family is still facing the same type of problems in their areas of residence as those that have been observed in 2012, such as the problems related to roads, sanitation, electricity, lack of recreational places for their families, along with the lack of educational and health services in general, as well as complaints of increasing housing for bachelors which is usually bothering, and some families complained of insects and rodents in their place of residence. – Emirates News Agency, WAM