The percentage of borrowing national families in Abu Dhabi dropped by 4 % in 2012 to 59% compared to 63% in 2011. Personal loans as are burdensome as they put heavy pressure on national families in Abu Dhabi.The personal loans constituted 24% on average of monthly household spending in 2012, registering an increase of (3%) down from its level in 2011. Opinion polls revealed that 56.4% of households expected that monthly expenses would rise during the first quarter of 2013, whereas results indicated that most of the loans (56%) were spent on auto financing in 2012.According to 2012 results 56% of respondents indicated that the main reason for obtaining a loan was to buy a car, while over 25% of respondents said that they took loans to buy a house for the family, and (11%) of respondents stated other goals including covering the expenses of marriage.This came within the results of the National Family Conditions Observatory results released by the studies Directorate of Abu Dhabi Department of Economic Development for the year 2012, which included an opinion poll for a sample of households across the Emirate of Abu Dhabi. Benchmark results stated that Emirate of Abu Dhabi national household average spending on education in 2012 amounted to AED 42,129, while average expenditure on mobile phones was AED 3,905, landline phones accounted for AED 1309.5. About 39% of respondents continuously changed; and those who purchased their cars through the bank financing constituted 56% of respondents. The percentage of citizens who took personal loans until the end of the fourth quarter of 2012 was relatively stable.The Observatory commended the decision of his Highness Sheikh Khalifa bin Zayed Al Nahyan the President of UAE, who ordered the settlement of defaulting personal loans of citizens, with loans below 5 AED million, which has had a positive impact on the standard of living, as it eased the burden on a large number of families. The number of beneficiaries of this Presidential Decision totaled 368 persons, with debts estimated at AED 568 million.The number of citizens who benefited from the selltlement of the first tranche of defaulted loans was 6830 persons with liabilities less than one million dirhams, where the total value of debt amounted to AED 2 billion. This deed constituted an important social dimension as a unique patriarchal and lofty goal of his Highness Sheikh Khalifa bin Zayed Al Nahyan.National Family Conditions Observatory 2012, revealed that the general price index registered 74 points in 2012 marking a 4 points drop compared to78 points in 2011, where citizens expressed concern about the high prices of most essential food commodities of meat, milk and dairy products compared to other food items. In response to question about their consumption patterns regarding increased consumer prices of food commodities, national families indicated that there was no change in the consumption pattern; most families consumed the same quantities or even more of the same of commoditities the prices of which had increased. The largest percentage of households in the sample indicated that their consumption of food commodities increased despite the high prices, especially with regard to different kinds of meat products, milk and dairy products. This reflects low price flexibility among national families.A large proportion of national families showed high consumer awareness about perfumes and toiletry goods in particular, as (56.5%) of respondents who felt the rise in prices of such commodities, reduced their consumption, while 24% of them continued to consume the same quantity of goods as they considered I them as essential.Nearly 18.4% of respondents continued to consume the same quantity, but opted for lower quality and lower price, while a small percentage (0.7%) of respondents replaced high priced goods with other commodities, as they considered them unnecessary, from their own perspective. About 0.4% of respondents reported that they reduced their consumption of other goods and services. With regard to the problems facing national families in residential areas approximately 84.6% of families stated that they do not suffer from any problems, while the remaining (15.4%) indicated that they suffer from problems in their residential areas.At the level of the three regions of the Emirate of Abu Dhabi, the Western Region turned to have a relatively high percentage of national families who indicated that they faced problems in their residential areas, as approximately 28.6% of the respondents considered that they faced problems in their housing area, while 14.4% reported the same in Al Ain, and 13.3% in Abu Dhabi Region.The Observatory revealed that families have other sources of incomes which dramatically contributed to achieving family stability, as financial burden is a source of concern for many families in the Western Region. According to the results, a good percentage of families have income other than that derived from work, which reflected that a large percentage of households depend on (non-work) sources of revenue obtained from the selling of crops and dairy products in family farms, in addition to pension and owned real estate rentals. According to the National Family Conditions Observatory 2012 in the Emirate of Abu Dhabi, there was a feeling among citizens that prices of food stuffs, durable goods and clothing in general had dropped in 2012 compared to 2011.Price hikes according to national families included meat, followed by dairy goods and their derivatives, while the price rise was least in grain commodities, sugar, oils and fats. Citizens were aware that changes in food prices go parallel to the results of the consumer confidence in economic performance index, the consumer price indices issued by the Statistics Centre -Abu Dhabi, as well as the global food prices released by FAO in December 2012.The Observatory also noted that the durable goods prices general indicator in the Emirate of Abu Dhabi in 2012 dropped 5 points compared to 2011.According to the Observatory, the number of national family members on average was two persons, and the number of individuals per family, who earn income from sources other than work, is one person, representing 27% of total families. Farms and pension constitute the main sources of other incomes for national families in Abu Dhabi, where one third of the national families sample examined were found to be depending on their farms for a secondary source of income.The price index is a composite index that is configured by using the evaluation of citizens for price change, with price weighted according to the number of households consuming each commodity. The index scale ranges from 0 to 100 points. The closer the value to zero the lower the price and the closer the value to100, the higher is the price, while the point 50 indicates price stability.