Consumer optimism in UAE has remained steady since mid-March, but spending patterns have changed. These exhibits are based on survey data collected in the UAE from June 16–18, 2020. Check back for regular updates on UAE consumer sentiments, behaviors, income, spending, and expectations.

1. McKinsey & Company 1
Emirati consumer optimism has remained steady throughout
the COVID-19 crisis
Confidence in own country’s economic recovery after COVID-191
% of respondents
1 Q: How is your overall confidence level in economic conditions after the COVID-19 situation? Rated from 1 “very optimistic” to 6 “very pessimistic”; figures may not sum to 100% because of rounding.
Mixed: The economy will be
impacted for 6–12 months or longer
and will stagnate or show slow
growth thereafter
Pessimistic: COVID-19 will have
lasting impact on the economy and
show regression/fall into lengthy
recession
Optimistic: The economy will
rebound within 2–3 months and
grow just as strong as or stronger
than before COVID-19
Source: McKinsey & Company COVID-19 UAE Consumer Pulse Survey 6/16–6/18/2020, n = 516, sampled and weighted to match the UAE's general population 18+ years
The UAE
15%
6% 6% 5%
28%
33% 31% 34%
57% 61% 63% 61%
Mar 23–26 Apr 3–6 Apr 24–29 Jun 16–18

2. McKinsey & Company 2
Reduce slightly / reduce a lot Increase slightly / increase a lotAbout the same
38%
7% 8%
26%
Past 2 weeks
67%
25%
Past 2 weeks
67%
10%
52%
Next 2 weeks
1 Q: How has the COVID-19 situation affected your (family’s) overall available income, spending, and savings in the past two weeks? Figures may not sum to 100% because of rounding.
2 Q: How do you think your overall available income, spending, and savings may change in the next two weeks? Figures may not sum to 100% because of rounding.
Two-thirds of consumers experienced a decline in income and
savings during the past two weeks
Past 2 weeks
19%17%
20%
32% 32%
Past 2 weeks
51% 49%
44%
36%
Next 2 weeks
Apr 23–29 June 17–22
Household income1,2
% of respondents
Household spending1,2
% of respondents
Household savings1,2
% of respondents
11%
21% 17%
68%
Past 2 weeks
14%
69%
Past 2 weeks
15%
36%
48%
Next 2 weeks
Apr 23–29 June 17–22 April 23–29 June 17–22
Source: McKinsey & Company COVID-19 UAE Consumer Pulse Survey 6/16–6/18/2020, n = 516, sampled and weighted to match the UAE's general population 18+ years

3. McKinsey & Company 3
UAE consumers believe the personal and financial impact from
COVID-19 will continue to last well beyond two months
7–12 months
7%
14%
31%
33%
4–6 months
15%
More than one year
0–1 month
2–3 months
7%
23%
31%
19%
15%
7–12 months
No impact
2–3 months
0–1 month
4–6 months
More than one year
4%
Adjustments to routines1
% of respondents
Impact on personal/household finances2
% of respondents
~86%
believe it will take
another 2+ months
before routines can
return to normal, down
from 89% in the last
pulse survey
~88%
believe their finances will
be impacted for 2+
months by the COVID-19
situation, down from 92%
in the last pulse survey
1 Q: How long do you believe you need to adjust your routines, given the current COVID-19 situation, before things return back to normal in the UAE (e.g., government lifts restrictions on events/travel)? Figures may not
sum to 100% because of rounding.
2 Q: How long do you believe your personal/household finances will be impacted by the COVID-19 situation? Figures may not sum to 100% because of rounding.
Source: McKinsey & Company COVID-19 UAE Consumer Pulse Survey 6/16–6/18/2020, n = 516, sampled and weighted to match the UAE's general population 18+ years

4. McKinsey & Company 4
Consumers still expect to decrease spending across categories,
with the exception of groceries, home entertainment, and supplies
15
30
36
38
47
57
51
52
61
58
16
18
20
38
55
26
16
9
20
14
10
8
7
9
5
16
22
15
10
7
Food takeout & delivery
Household supplies
Groceries
Snacks
Tobacco products
Alcohol
Restaurant
Quick-service restaurant
Footwear
Apparel
Jewelry
Accessories
Non-food child products
Personal-care products
Skin care & makeup
Furnishings & appliances
Expected spending per category over the next two weeks compared to usual1
% of respondents
Decrease Stay the same Increase
26
43
57
60
27
45
46
32
50
43
41
47
69
68
68
56
20
10
6
13
9
16
12
17
7
6
14
14
10
11
9
11
Books/magazines/newspapers
Entertainment at home
Domestic flights
Gasoline
Pet-care services
Consumer electronics
Out-of-home entertainment
Fitness & wellness
Personal-care services
Vehicle purchases
Short-term home rentals
Travel by car
Cruises
Adventures & tours
International flights
Hotel/resort stays
1 Q: Over the next two weeks, do you expect that you will spend more, about the same, or less money on these categories than usual? Figures may not sum to 100% because of rounding.
2 Net intent is calculated by subtracting the % of respondents stating they expect to decrease spending from the % of respondents stating they expect to increase spending.
3 Data not available
Net intent2
-6
-33
-51
-47
-18
-29
-34
-15
-43
-37
-27
-33
-59
-57
-59
-45
Net intent2
+11
0
+4
-48
-23
-27
-18
-33
-47
-43
-45
-52
-53
-5
-28
N/A3
Source: McKinsey & Company COVID-19 UAE Consumer Pulse Survey 6/16–6/18/2020, n = 516, sampled and weighted to match the UAE's general population 18+ years

5. McKinsey & Company 5
Which best describes how often you are doing each of the following items1
% of respondents
1 Q: Which best describes how often you are doing each of the following items? Possible answers: “doing less since coronavirus started”; “doing about the same since coronavirus started”; “doing more since coronavirus started.”
Figures may not sum to 100% because of rounding.
UAE consumers are becoming more mindful of how they spend,
and are adopting habits such as making lists and researching
12%
8%
13%
19%
15%
33%
37%
39%
42%
48%
56%
54%
48%
40%
38%
Looking for ways to save money when shopping
Spending time planning/making lists for shopping trips
Becoming more mindful of where I spend my money
Researching brand and product choices before buying
Changing to less expensive products to save money
100%
Doing moreDoing about the sameDoing less
Source: McKinsey & Company COVID-19 UAE Consumer Pulse Survey 6/16–6/18/2020, n = 516, sampled and weighted to match the UAE's general population 18+ years

6. McKinsey & Company 6
While spending intent has declined in-store, online intent is
positive for many categories
1 Q: Over the next two weeks, where do you expect you’ll buy these categories? Tell us if you will shop in the following places more, about the same, or less in the next two weeks; please note, if you don’t buy
in one of these places today and won’t in next two weeks, please select “N/A.”
2 Net intent is calculated by subtracting the % of respondents stating they expect to decrease shopping frequency from the % of respondents stating they expect to increase shopping frequency.
Expected change in shopping channel per category over the next two weeks1
Axes show net intent,2 bubble size relative to share of respondents that have purchased category in last six months
-15
-42
-30-33
-21
-27 -12
-18
-24 6-21
-3
-18
-9
-9 -6 -3 0
-12
-6
3
-24
-33
159
0
12
3
18
6
21 24 27
-15
30
-45
-39
-36
-30
-27
FootwearFurnishing &
appliances
Entertainment
at home (e.g., Netflix)
Personal-care products
(e.g., soap, shampoo)
Snacks
Accessories
Skin care & makeup
Non-food child products
(e.g., diapers)Fitness &
wellness
Apparel
Tobacco
Jewelry
Food takeout & delivery
Household supplies
(e.g., cleaning, laundry)
Consumer
electronics
Books,
magazines,
newspapers
Groceries
Entertainment at home
Discretionary
Household essentials
In-store
Online
Source: McKinsey & Company COVID-19 UAE Consumer Pulse Survey 6/16–6/18/2020, n = 516, sampled and weighted to match the UAE's general population 18+ years

7. McKinsey & Company 7
More people expect to make a portion of their purchases online
post-COVID-19 than before
Consumers’ use of online channel before and after COVID-191,2
% of respondents purchasing online3
1 Q: Before the coronavirus (COVID-19) situation started, what proportion of your purchases in this category were online vs from a physical store/in-person?
2 Q: Once the coronavirus (COVID-19) situation has subsided, tell us what proportion of your purchases in this category you think will be online vs from a physical store/in person?
3 Respondents who indicated that they have not bought the category online and do not intend to do so in the next two weeks are classified as not purchasing online.
29
65
36
44
28
48
34
43
49
38
48
27
52
86
41
33
Entertainment at home
+20
+26
Groceries +20
82
+13
+3
+17
89
68
Household supplies
Jewelry
Food takeout & delivery
Snacks +9
+15Furnishing & appliances
+18Personal-care products
Skin care & makeup
Fitness & wellness
+17
45
Non-food child products
+17Apparel
+16Footwear
+16
60
Accessories
+15
+8Consumer electronics
+22Books, magazines, newspapers
Tobacco
49
59
46
60
60
66
63
54
64
42
46
Pre-COVID-19 Expected growth after COVID-19
% growth in customers
purchasing category online
69%
26%
25%
42%
55%
34%
64%
56%
33%
76%
40%
35%
42%
3%
15%
54%
39%
Source: McKinsey & Company COVID-19 UAE Consumer Pulse Survey 6/16–6/18/2020, n = 516, sampled and weighted to match the UAE's general population 18+ years

8. McKinsey & Company 8
Have you used any of the following since COVID-19 started1
% of respondents
Consumers have discovered new shopping behaviors, including
new stores and brands
49%
45%
42%
37%
22%
New digital shopping method
Private label/store brand
Different retailer/store/website
Different brand
New shopping method2
Source: McKinsey & Company COVID-19 UAE Consumer Pulse Survey 6/16–6/18/2020, n = 516, sampled and weighted to match the UAE's general population 18+ years
1 Q: Since the coronavirus (COVID-19) situation started (i.e., in the past ~3 months), which of the following have you done? 8% consumers selected “none of these.”
2 “New shopping method” includes curbside pickup and delivery apps.
92%
Consumers have tried
a new shopping
behavior

9. McKinsey & Company 9
Value and convenience are key drivers for consumers trying new
places to shop
Reason for shopping at a new retailer/store/website in the past three months1
% of respondents selecting reason as top three
36%
25%
23%
25%
22%
23%
21%
20%
9%
16%
14%
13%
4%
Better prices/promotions
Offers good delivery/pickup options
Better value
Better shipping/delivery costs
Can get all the items I need from one place
More easily accessible from my home
Better quality
Less crowded/shorter lines
Offers natural/organic options
Products are in stock
Cleaner/has better hygiene measures
Supporting local businesses
The company treats its employees well
1 Q: You mentioned you shopped from a new retailer/store/website since the coronavirus (COVID-19) situation started. What was the main reason you decided to try this new retailer/store/website? Select up to 3.
Source: McKinsey & Company COVID-19 UAE Consumer Pulse Survey 6/16–6/18/2020, n = 516, sampled and weighted to match the UAE's general population 18+ years
Convenience
Health/Hygiene
Availability
Purpose-driven
Quality/Organic
Value

10. McKinsey & Company 10
Value and product quality were key drivers for consumers who
switched brands
Reason for trying a new brand in the past three months1
% of respondents selecting reason as top three
47%
32%
24%
14%
33%
17%
23%
23%
22%
13%
5%
Products are in stock
Better prices/promotions
Better value
Larger package sizes
Better shipping/delivery costs
Better quality
Is available where I’m shopping
Is natural/organic
Cleaner/has better hygiene measures
Supporting local businesses
The company treats its employees well
1 Q: You mentioned you tried a new/different brand than what you normally buy. What was the main reason that drove this decision? Select up to 3. Brand includes different brand, new private label/ store brand.
Source: McKinsey & Company COVID-19 UAE Consumer Pulse Survey 6/16–6/18/2020, n = 516, sampled and weighted to match the UAE's general population 18+ years
Value
Quality/Organic
Purpose-driven
Convenience
Health/Hygiene
Availability

11. McKinsey & Company 11
Source of uncovering new retailer/store/website1
% of respondents
Digital is a key trigger for finding new places to shop; 70 percent of
respondents indicate online channels are sources of insight
1 Q: You mentioned you shopped from a different retailer/store/website since the coronavirus (COVID-19) situation started. How did you initially come across this new retailer/store/website? Select one.
23
18 17
35
8
Someone talking about it on social media
Proactively researched
Heard from a family member/friend
Advertisement online
Advertisement on TV/Print/Radio
Source: McKinsey & Company COVID-19 UAE Consumer Pulse Survey 6/16–6/18/2020, n = 516, sampled and weighted to match the UAE's general population 18+ years

12. McKinsey & Company 12
Have you used or done any of the following since COVID-19 started1
% of respondents
1 Q: Have you used or done any of the following since the COVID-19 situation started? If yes, Q: Which best describes when you have done or used each of these items? Possible answers: “just started using since COVID-19 started”;
“using more since COVID-19 started”; “using about the same since COVID-19 started”; “using less since COVID-19 started.”
UAE consumers have picked up new digital and low-touch activities,
including remote learning, videoconferencing, and grocery delivery
39%
31%
26%
13%
16%
11%
10%
5%
20%
14%
14%
8%
8%
17%
18%
11%
10%
7%
7%
6%
9%
Wellness app
3%
TikTok
Watching e-sports
Remote learning: myself
Online streaming
Telemedicine: physical
Video chat: personal
Videoconferencing: professional
Remote learning: my children
3%
3%
1%
Telemedicine: mental
Spending time outdoors
1%
Online fitness
3%
Digital exercise machine
Playing online games
4%
36%
33%
13%
10%
23%
13%
8%
10%
4%
Restaurant delivery 4%
3%
5%
3%
Quick-serve restaurant drive-thru
In-store self-checkout
Restaurant curbside pickup
Grocery delivery
5%
3%
Store curbside pickup
Buy online for in-store pickup
2%Meal-kit delivery
Not using Using less / the same Using more Just started using
Source: McKinsey & Company COVID-19 UAE Consumer Pulse Survey 6/16–6/18/2020, n = 516, sampled and weighted to match the UAE's general population 18+ years

13. McKinsey & Company 13
Consumer changes to digital and low-touch activities fall into three
primary buckets
1 Q: Compared to now, will you do or use the following more, less or not at all, once the coronavirus (COVID-19) situation has subsided? Possible answers: “will stop this”; “will reduce this”; “will keep doing what I am doing now”, “will increase this.”
2 User growth is calculated as % of respondents who replied that they are new users over % of respondents who replied that they were either: increased usage users, same usage users, or reduced usage users.
UsergrowthsinceCOVID-192
High(>30%)Low(<30%)
Intent to use after COVID-191
Percent of new or increased users who intend to keep doing activity after COVID-19
Low (<60%) Medium-high (>60%)
Works for now
Activities necessitated by
COVID-19 that are poor
substitutes for in-person
counterparts and
consequently have lower
intent to continue
Accelerated shifts
Satisfactory digital replacements for
in-person activities and connectivity,
with growing adoption
Potentially here to stay
New and familiar forms of
entertainment and interaction with
medium-high intent to continue
 User growth is defined as the percent of
respondents who replied that they are new
users over the percent of respondents who
replied that they were using this service
pre-COVID-19
 Intent to continue is defined as the percent of
respondents who replied that, after COVID-19,
they will keep their usage at the same level or
will increase usage
Source: McKinsey & Company COVID-19 UAE Consumer Pulse Survey 6/16–6/18/2020, n = 516, sampled and weighted to match the UAE's general population 18+ years

14. McKinsey & Company 14
UsergrowthsinceCOVID-192
Intent to use after COVID-191
Percent of new or increased users who intend to keep doing activity after COVID-19
Post-COVID-19 usage intent is high for grocery delivery as well as
spending time outdoors
1 Q: Compared to now, will you do or use the following more, less, or not at all, once the coronavirus (COVID-19) situation has subsided? Possible answers: “will stop this”; ”will reduce this”; “will keep doing what I am doing now”; “will increase this.”
2 User growth is calculated as % of respondents who replied that they are new users over % of respondents who replied that they were using the product/service pre-COVID-19 (using more, using the same or using less).
High(>30%)Low(<30%)
Low (<60%) Medium-high (>60%)
Works for now Accelerated shifts
Potentially here to stay
User
growth
Intent to
continue
Restaurant curbside pickup
Videoconferencing: professional
TikTok
Telemedicine: physical 94% 63%Remote learning: my children
Store curbside pickup
32% 47%
User
growth
Intent to
continue
54% 52%
45% 47%
110% 53%
Wellness app 59% 75%Changed primary grocery store 76% 52%
In-store self-checkout 59% 80%Telemedicine: mental 71% 58%
44% 58%
Restaurant delivery
Online streaming
Spending time outdoors
Video chat: personal
Quick-serve restaurant drive-thru
Grocery delivery
8%
16%
9%
21%
17%
31%
User
growth
62%
61%
78%
62%
64%
66%
Intent to
continue
Online fitness 58% 66%
Remote learning: myself 56% 67%
Buy online for in-store pickup 32% 67%
Digital exercise machine 26% 58%
Meal-kit delivery 23% 57%
Playing online games 23% 38%
Watching e-sports 20% 41%
Source: McKinsey & Company COVID-19 UAE Consumer Pulse Survey 6/16–6/18/2020, n = 516, sampled and weighted to match the UAE's general population 18+ years

15. McKinsey & Company 15
UAE consumers are expecting to engage more in out-of-home
activities in the next two weeks
Consumers’ engagement with activities outside home1
% of respondents
1 Q: Did you leave your house for the following activities over the past two weeks? Chart represents the percentage of respondents who indicated that they left home at least once during the past week to do this activity. Q: For which of the
following activities do you intend to leave your home to do in the next two weeks? Chart represents % of respondents who intend to leave their home to do this activity during the next two weeks.
76%
46%
43%
40%
24%
22%
20%
20%
17%
16%
15%
10%
8%
8%
5%
5%
Get together with family
Drive more than 2 hours from home
Shop for groceries/necessities
Go out to play team sports
Use public transportation
Work outside my home
Shop for non-necessities
Go to a hair or nail salon
Dine in at a restaurant or bar
Attend a large event
Get together with friends
Go to the gym or fitness studio
Visit a crowded outdoor public place
Use ride-sharing service
Go out for family entertainment
Travel by airplane
Past 2 weeks Next 2 weeks
80%
54%
53%
46%
32%
36%
32%
24%
27%
27%
20%
15%
19%
20%
13%
11%
Source: McKinsey & Company COVID-19 UAE Consumer Pulse Survey 6/16–6/18/2020, n = 516, sampled and weighted to match the UAE's general population 18+ years

16. McKinsey & Company 16
Most UAE consumers are concerned about using shared services and
attending large gatherings
Consumers’ worries about out-of-home activities in the next two weeks1
% of respondents
1 Q: How worried would you be if you were to do the following activities in the next two weeks? Possible answers: “not worried at all”; “not very worried”; “somewhat worried”; “very worried”; “extremely worried.”
3 Level of concern is calculated by subtracting the % of respondents stating they are “not worried at all” and “not very worried” from “very worried” and “extremely worried.” Figures may not sum to 100% because of rounding.
Level of concern2
41%
35%
33%
29%
28%
24%
24%
21%
21%
23%
19%
19%
16%
14%
16%
14%
13%
13%
41%
38%
39%
39%
38%
33%
33%
36%
35%
29%
32%
31%
33%
31%
28%
30%
28%
27%
18%
28%
28%
32%
34%
43%
43%
43%
44%
49%
50%
50%
51%
54%
56%
56%
59%
60%Attend a large event
Dine in at a restaurant or bar
Go to a hair or nail salon
Shop for groceries/necessities
Shop for non-necessities
Drive more than 2 hours from home
Work outside my home
Get together with family
Rent a short-term home
Get together with friends
Stay in a hotel
Go to the gym or fitness studio
Go out for family entertainment
Use ride-sharing service
Visit a crowded outdoor public place
Use a clothing rental service
Use public transportation
Travel by airplane
Not worried Somewhat worried Worried
Source: McKinsey & Company COVID-19 UAE Consumer Pulse Survey 6/16–6/18/2020, n = 516, sampled and weighted to match the UAE's general population 18+ years
-23
-7
-5
+3
+19
+6
+19
+22
+23
+31
+40
+26
+31
+35
+40
+42
+47
+46

17. McKinsey & Company 17
Milestones for the UAE population not yet engaging with out-of-home activities1
% of respondents awaiting each milestone before engaging
Of consumers waiting to restart out-of-home activities, 73 percent
are waiting for milestones beyond the lifting of restrictions
1 Q: Which best describes when you will regularly return to stores, restaurants, and other out-of-home activities? Chart rebased to exclude those already participating in these activities and those who do not deem any of these items important.
Figures may not sum to 100% because of rounding.
57
16
27
Government lifts
restriction + other
requirement
Only once there’s a
vaccine or treatment
Government lifts restrictions
Medical authorities deem safe 25%
Stores, restaurants, and other indoor
places start taking safety measures 23%
I see other people returning 9%
Government lifts restrictions and…
90%
of people are
not currently
engaging in
out-of-home
activities
Source: McKinsey & Company COVID-19 UAE Consumer Pulse Survey 6/16–6/18/2020, n = 516, sampled and weighted to match the UAE's general population 18+ years

18. McKinsey & Company 18
Cleaning and masks or barriers are most important to consumers
as they decide where to shop in-store
Top priorities when deciding where to shop in-store1
% of respondents for whom this criterion is the most important2
1 Q: Once restrictions lift, which of the following factors will be most important to you as you decide which of these places to visit in person? Respondents were asked to select the most important.
2 The following categories are included in each bucket: Cleaning and sanitization—increased cleaning, improved air filtration, availability of sanitizing supplies throughout the store; Health checks—customer wellness check (e.g., temperature) on
entry, employees' wellness check (e.g., temperature) on entry; Masks and barriers—customers and employees wear masks, customers and employees provided masks and gloves, plastic barrier with cashier; No-contact purchasing—curbside
pick-up, cashier-less checkout, no contact delivery, buy online for pickup in store; Physical distancing—customer number limit, distancing in customer line, reduced employee activity during shopping hours; Store regulations—no customer product
testing, one-way store aisles, special hours for high-risk shoppers.
27%
25%
14%
12%
11%
10%
Physical distancing
Cleaning and sanitization
Masks and barriers
No-contact purchasing
Health checks
Store regulations
Source: McKinsey & Company COVID-19 UAE Consumer Pulse Survey 6/16–6/18/2020, n = 516, sampled and weighted to match the UAE's general population 18+ years

19. McKinsey & Company 19
Which best describes how often you are doing each of the following items1
% of respondents
1 Q: Which best describes how often you are doing each of the following items? Possible answers: “doing less since coronavirus started”; “doing about the same since coronavirus started”; “doing more since coronavirus started.”
Figures may not sum to 100% because of rounding.
UAE consumers are increasingly focusing on packaging and how
companies treat their employees
Source: McKinsey & Company COVID-19 UAE Consumer Pulse Survey 6/16–6/18/2020, n = 516, sampled and weighted to match the UAE's general population 18+ years
11%
11%
13%
14%
19%
45%
47%
51%
53%
57%
45%
42%
35%
33%
24%
Retailers promotion of sustainable solutions
100%
Healthy and hygienic packaging
How companies take care of the safety of their employees
Company’s purpose/values
Sustainable/eco-friendly products
Doing less Doing about the same Doing more
Buying based on…

20. McKinsey & Company 20
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