The UAE’s consumer spending rose by 17% between February and March sparking hopes that the retail economy is on course to make a complete recovery.

E-commerce spending increased by 30% year-on-year by February, reports Arab News.

The findings are the first of a series of quarterly reports by Majid Al-Futtaim, the leading shopping mall, communities, retail, and leisure pioneer across the Middle East, Africa, and Asia.

The report, entitled “State of the UAE Retail Economy”, revealed consumer business in the UAE fell by 12% compared to the 22% drop in the wider economy as a result of the coronavirus crisis.

The UAE’s overall economy is forecast to grow by 3.1% this year, according to the International Monetary Fund.

In addition, the country’s central bank predicts economic activity to rally this year by 25%, and a full recovery in 2022, with overall GDP hitting 3.5%.

“In 2020, we experienced a rapid shift from established consumer patterns to the need for emerging innovation like e-commerce, to meet consumers’ changing needs,” stated Alain Bejjani, CEO at Majid Al-Futtaim.

Bejjani added he’s confident that the upbeat signs seen during the first months of this year will continue to fuel a positive outlook on economic recovery.

Moreover, tourism spending increased in Q1, with a 91% rise in fashion and accessories spending, a 207% increase in spending on watches and jewellery and a 90% rise in electronics, compared to Q1 2019.

“Looking ahead, we continue to see an acceleration in consumer expectations toward omnichannel experiences, as digital and technology solutions become further integrated into everyday life. We also look forward to seeing further recovery in tourism-related sectors, bolstered by the opening of EXPO2020 later this year,” Bejjani added.