The latest Bayt.com Middle East and North Africa Consumer Confidence Index survey, conducted by Bayt.com, the Middle East’s number one job site, and leading market research agency, YouGov, has shown that while more than half of UAE respondents believe that their financial position will improve in the next six months, a majority (74%) are also expecting the cost of living to rise.
Personal Economic Situation
Just23% of respondents in the UAE consider their personal financial situation to have improved in the last six months. In parallel,43% claim that it has remained the same, another27% believe that it has gotten worse, and a noteworthy54% of UAE respondents expect their financial position to get better in the next six months.
89% believe that the cost of living will increase or remain the same in the UAE within the same time period. Interestingly, more than half of UAE respondents (52%) revealed that their savings have decreased in comparison to last year.
In terms of purchases, close to one fourth (37%) of UAE respondents are hoping to buy a new car in the coming year, with49% planning to purchase a brand new vehicle;43% are looking to buy second-hand.27% of UAE respondents are planning to invest in property, with apartments (41%) being the investment of choice, followed by villas/townhouses/bungalows (26%), and commercial properties (23%).57% are keen on buying a new property, while26% intend to buy a pre-owned property. In terms of smaller purchases, UAE respondents are looking to purchase desktop or laptop computers (29%), furniture (22%), and LCD or plasma televisions (14%).
The Country’s Economic Situation
Overall,38% of respondents believe that the UAE economy has improved in the last six months, while35% claim that it has remained the same. A notable56% expect things to get better in the next half a year.
Furthermore,46% believe that present business conditions are either very good or good; a remarkable65% expect business conditions to improve in a year’s time. In the UAE, jobs are considered to be plentiful according to49% of respondents, and42% expect a surge in the number of job opportunities in the UAE in the next six months.
Current Job Perspective
According to more than one-third (38%) of UAE respondents, their companies have grown in terms of the number of employees in the last six months. Still,28% state that their companies have fewer people now. Half of the respondents expect the number of employees in their company to increase in the next half year.
For the most part, job satisfaction levels remain high across the country. UAE professionals are generally happy with their career growth opportunities (49%), compensation (40%), non-monetary benefits (48%), and job security (44%).
Elissavet Vraka, Research Manager, YouGov, said: “It is important to recognize that more than half of respondents across the MENA region claim that their savings have decreased in comparison to last year. This means that despite their high hopes for the future, soaring levels of confidence and satisfaction with their current positions, professionals in the MENA region are still feeling financially challenged in today’s complex market environment.”
Data for the YouGov and Bayt.com Middle East and North Africa Consumer Confidence Index Survey for January2015 was collected online from January19-31,2015, with the participation of4,263 respondents aged18 years and above. Respondents were from the UAE, KSA, Kuwait, Oman, Qatar, Bahrain, Lebanon, Syria, Jordan, Egypt, Morocco, Algeria, and Tunisia.