A GCC report has warned that excessive consumerism has evolved from an individual behaviour into an economic and social challenge that threatens financial sustainability, alters household spending priorities and diverts Gulf purchasing power to foreign markets.
The report, Limiting Excessive Consumerism in GCC Societies, obtained by our sister paper Akhbar Al Khaleej, was prepared for the Advisory Commission of the GCC Supreme Council. It says economic and social changes, coupled with rising incomes, have encouraged spending driven by social status and lifestyle rather than essential needs.
The report notes that the trend is undermining saving habits, reducing the efficient use of financial resources and weakening the financial stability of individuals and families. It also increases social pressure, particularly among young people, fuelled by the growing influence of digital content and social media influencers.
Among its key concerns are the depletion of household savings, increased dependence on consumer borrowing, reduced investment in assets, and the outflow of Gulf purchasing power through overseas shopping, travel and entertainment spending.
The report recommends a unified GCC strategy that includes regulating digital marketing by influencers, launching financial awareness campaigns, promoting responsible borrowing and encouraging a culture of saving and responsible spending. It also calls for a joint implementation plan with measurable performance indicators, stressing that the goal is to balance quality of life with long-term financial sustainability, not to restrict economic activity.
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