Underlying causes of overconsumption

C-BID is collaborating with the Presidential Court to investigate the underlying causes of overconsumption in the UAE. This partnership leverages C-BID’s expertise in assembling representative samples of the UAE population and employs a pioneering empirical method developed by C-BID to diagnose social issues and identify key stakeholders who can drive social change.

The research program aims to uncover the root causes of overconsumption, analyzing factors such as financial literacy, psychological traits, and social norms across various demographic segments, including youth, Emiratis, and urban residents. These insights are instrumental in shaping interventions—such as nudges—to promote financial prudence within the community.

Over the past decade, overspending has emerged as a significant social concern with alarming statistics leading to financial strains for households. The necessity to comprehend the societal shift towards excess consumption is underscored by the unique historical contexts making generic interventions insufficient.

In this context, His Highness Sheikh Mohamed bin Zayed Al Nahyan emphasized the importance of curbing unnecessary expenditure: “We have a habit of excess, which we need to restrain... Overspending for no reason is bad.” Understanding the precise factors behind this trend is vital, as applicable interventions must be tailored to the specific social landscape.

C-BID’s approach is grounded in the latest behavioral science advancements, focusing on locally relevant diagnostics rather than transplanting methods from other contexts. The research included focus groups to gain insights into spending behaviors, using a representative sample we applied the innovative method developed by Professor Nikos Nikiforakis, which examines how social networks influence consumption patterns.

This collaboration is relevant to design and testing of interventions to curb overspending and other social issues, such as food waste and littering, solidifying C-BID’s role as a premier research center in behavioral social science in the UAE and MENA region.