Dubai, UAE: According to the second Consumer Confidence Index (CCI) conducted by Bayt.com and YouGov Siraj,62 per cent of people in the region believe their personal financial situations will improve in the year ahead, compared to59 per cent in the company’s April survey. Overall, respondents showed a modest rise in confidence in such areas as job availability, business conditions and inflation.
Some55 per cent of UAE respondents said they felt upbeat about their country’s economic prospects, a figure that reached a low of27 per cent in Lebanon and a high of59 per cent in Qatar. Such indices are considered to be a vital gauge of a country’s economic wellbeing, and a reliable predictor of future trends.
Bayt.com, the Middle East’s number one job site, conducts CCI surveys on a quarterly basis in conjunction with YouGovSiraj, a leading market research leader. The latest survey drew a notable12,518 respondents, male and female across the GCC, Levant and North Africa. Responses were categorised according to nationality, country of residence and income bracket.
Local results indicate that consumer spending in the UAE economy is at a high potentially due to increased tourism during the summer months and the inclination of residents to take advantage of seasonal special offers and the Dubai Summer Surprises promotions. The Propensity to Consume Index for the UAE registered a robust103.6 for the UAE in July versus the100 benchmark of April.
“People in the UAE are taking advantage of seasonal offers, but we see similar increases in anticipated spending across all countries,” said Rabea Ataya, CEO, Bayt.com. “The implications of this upward trend are significant. Consumer confidence doesn’t only reflect current economic conditions but fuels future growth..”
The rise in consumer confidence is being driven in part by perceptions that job opportunities will be healthy in the year ahead. Across the region,69 per cent of respondents thought that employment availability will remain at current rates or improve. In Qatar, that figure rose to84 per cent, while in the UAE and Saudi Arabia it was73 and76 per cent respectively.
Some46 per cent of consumers in Qatar and41 per cent in Saudi Arabia and Kuwait believed that their families’ current financial position was better than that of the previous year. In the UAE, Saudi Arabia and Qatar,51 per cent,57 per cent and58 per cent respectively felt that in the current period, business conditions were good.
Asians once again had the highest levels of confidence, with68 per cent upbeat about their personal financial prospects and63 per cent saying they expected economic improvements in their resident countries in the year ahead. Some62 per cent of GCC nationals felt a similar optimism, while only44 per cent of Westerners predicted a good year ahead for their resident countries.
Employees in the private sector remained the most upbeat about their personal situations and country’s economic prospects. By salary, people in the $5001-to-$6000 per month bracket were among the least positive about their current situations, with only42 per cent expressing satisfaction, but the most confident about the future, with71 per cent saying they saw better things ahead.
As with the April survey, there were some points of contention among consumers. Only14 per cent of people in Qatar and13 per cent of Saudis expressed high satisfaction with their current salaries. This figure dipped to8 per cent in the UAE, among the lowest in the region. Some63 per cent of UAE residents felt that wages had not kept pace with the cost of living. The UAE saw a4 per cent decrease among those who thought their country’s economy had improved.
“These figures, while not particularly encouraging, are still extr emely valuable,” said Ataya. “Knowing, for instance, that consumers feel their wages aren’t keeping up with prices allows people who have an influence in these matters to work to set things straight. That may, indeed, be the highest value of a survey like this.”
Commenting on the survey, Joanna Longworth, Chief Marketing Officer, YouGovSiraj said, “We are confident that our Consumer Confidence Index provides a means through which the attitudes and perceptions of the Middle East consumer can be monitored and improved. We are delighted to join forces with Bayt.com to bring these reports to politicians, business leaders and the general public.”
Full results of the survey can be found online at Bayt.com.