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 despite respondents’ expecting Kuwait’s economy and job opportunities to grow in the foreseeable future, respondents are still concerned about the rising cost of living.
Personal Economic Situation
27% of respondents in Kuwait consider their personal financial situation to have improved in the last6 months, with47% stating that it has remained the same, and43% considering it will get better in the next6 months. Despite this,82% believe that the cost of living will rise in Kuwait within the same time period. Half of Kuwait respondents (50%) state that their savings have decreased in comparison to last year.
In terms of purchases, four in10 Kuwait respondents are planning to invest in a vehicle in the coming year, with32% planning to purchase a new vehicle for personal use. A sizable29% are planning on investing in property, with apartments (49%) being the investment of choice. Over half (58%) plan to purchase a new property, while20% plan to buy a pre-owned property. In terms of smaller purchases, Kuwait respondents plan to buy desktop or laptop computers (19%), furniture (21%), refrigerators (12%) and LCD or plasma televisions (12%) in the next6 months.
The Country’s Economic Situation
The Kuwait economy has improved in the last6 months, according to21% of respondents, and42% expect things to get better in the next6 months. Present business conditions are considered to be good to very good by39%, again with the expectation for things to get better in the year to come (50%). In Kuwait, jobs are considered to be plentiful according to39% of respondents, and35% expect the number of job opportunities in Kuwait to remain steady in the next6 months.
Current Job Perspective
According to35% of respondents, their companies have grown in terms of the number of employees in the last6 months. About a quarter state that their companies have fewer people now.43% of respondents expect the number of employees in their company to grow in the next half year.
For the most part, job satisfaction is high in Kuwait. Kuwait professionals are happy with career growth opportunities (42%), non-monetary benefits (36%), and job security (45%), but they are less happy with their current salary (41% are satisfied).
“On the whole, the outlook for the region is a good one. Things are certainly improving with more and more major projects materializing across the MENA region, such as the upcoming World Cup in Qatar and Expo2020 in Dubai,” said Suhail Al-Masri, VP of Sales, Bayt.com. “These projects are generating more job opportunities, which is a boom for the region. They are, however, also driving up costs which is why savings are dwindling and respondents are expecting a higher cost of living in the future. Employers must take this into consideration when hiring new employees.”
Silviu Matei, Director, YouGov, said: “An interesting point to note is that despite the fact that most people in the MENA region consider their personal financial situation to have either improved or stayed the same, a large proportion state that their savings have decreased. Despite high levels of confidence in the market, rising prices seem to negatively impact residents’ savings.”
Data for the YouGov and Bayt.com Middle East and North Africa Consumer Confidence Index Survey for August2014 was collected online from August5-19,2014, amongst5,075 respondents aged18 years and above. Respondents were from the UAE, KSA, Kuwait, Oman, Qatar, Bahrain, Lebanon, Syria, Jordan, Egypt, Morocco, Algeria, and Tunisia.