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 YouGov, the region’s reputed research and consulting organisation, has revealed that while27% of Lebanon respondents share a positive sentiment that their personal financial position will improve in the next6 months,78% also expect the cost of living to increase within the same time period.
Personal Economic Situation
Regional Sentiment
Across the region, less than a fifth (17%) of those surveyed are of the opinion that their personal financial situation has improved, compared to6 months ago. However, for39% it has remained the same and37% state that their situation has declined. This has affected the savings of58% who report seeing a decrease in their savings in comparison to last year. Four in10 (39%) are optimistic that in the next6 months things will get better for them, even though78% anticipate the cost of living to increase.
Almost a third (30%) of respondents in the MENA region plan to buy a vehicle for personal use in the next12 months, with49% preferring to buy a used vehicle over the44% who will seek a new one. Nearly a fifth (19%) is planning to invest in property within the same period, with new apartments being the most popular consideration for purchase.
The top three consumer goods purchases that respondents plan to make include desktop or laptop computers (26%), furniture (18%), and LCD or plasma televisions (16%).
In Lebanon
In Lebanon,10% report that their financial position has improved in the last6 months, with a further three in10 (30%) claiming there has been no change, while55% have seen a decline. Seven in10 (70%) claim that their savings have decreased compared to12 months ago. The outlook is positive however, with27% anticipating their financial situation to change for the better within the coming6 months, despite the expected increase in cost of living within the same period among seven in10 (78%) living in Lebanon.
Among the21% who are considering buying a vehicle for personal use in the next12 months, five in10 (47%) would prefer a new vehicle.12) plan to invest in property within the next12 months. Amongst property investors,63% will look for newly-built properties, and84% will opt for apartments.
Respondents in Lebanon are interested in buying furniture (19%), desktop or laptop computers (18%), and LCD or plasma televisions (15%) in the next6 months.
Country’s Economic Situation
Regional Sentiment
There is a significant split within the regions of the MENA when it comes to respondents’ evaluation of the economy in their country of residence. In the GCC, respondents are generally positive about the economy, believing that it has mostly improved in the last6 months. However, countries in the Levant and North Africa are less positive, with those in the Levant in particular, believing that their country’s economic situation has dramatically receded when compared to the economy of6 months ago. The Levant countries are also less positive about the future of their economy, with the majority of respondents holding the belief that things will get worse.
Across the region, overall50% of those surveyed are optimistic about the future business conditions in their respective countries. This sentiment is much stronger amongst GCC residents (average of62%) and weakest across the Levant region (average of27%). The state of business conditions reflects the regional opinion of job availability; respondents in GCC countries believe that there are plenty of job opportunities, whereas those in the Levant and North Africa believe the opposite to be true. Respondents in the GCC are also more positive about an increase in the number of jobs in the next6 months.
In Lebanon
Seven in10 Lebanon respondents (70%) state that the country’s economy has declined in the last6 months – a trend that50% believe will continue in the6 months to come. Business conditions are considered to be good to very good by16% of respondents, with three in10 (31%) claiming that things will become better in a year’s time.
There are few jobs available in Lebanon according to76% of respondents, with the majority sharing no hope of more openings to appear in the coming6 months (as stated by76%).
Current Job Perspective
Regional Sentiment
There is a near even three-way split across the region in regards to the change in the number of employees within respondents’ companies in the last6 months;30% state there has been an increase in employees,30% state there has been a decrease, and34% state there has been no change. In the next6 months, slightly more than one third (35%) anticipate their organisation to grow, while a similar number (35%) expect the workforce to remain the same.
Respondents are also relatively evenly split in terms of their level of satisfaction with respect to career growth opportunities, with38% satisfied and41% dissatisfied with the opportunities available to them. Compensation is considered to be unsatisfactory by53% of the region’s respondents. However, when it comes to non-monetary benefits received,42% are satisfied and41% claim being dissatisfied. The opinion about job security is also split evenly, with40% being satisfied with their level of job security and another39% unsatisfied.
In Lebanon
With41% of respondents stating that there are fewer employees working with them now than half a year ago, it suggests that companies in Lebanon have not been hiring in the past6 months. This trend will continue as three in10 Lebanon respondents (25%) expect to have fewer colleagues in the coming6 months.
Lebanon respondents are not content with the career growth opportunities (38%), non-monetary benefits (38%), and level of job security (40%) in their current position. At least three in10 (46%) report being unhappy with their salary and allowances.
“Despite a regional consensus on a proportional rise in the cost of living, positive sentiment across the region, particularly in the GCC countries and more recently among North African states, can be seen,” said Suhail Al-Masri, VP of Sales, Bayt.com. “An increased cost of living may negatively impact consumers’ ability to live comfortably and save, affecting the overall morale and job satisfaction of the MENA employee. In fact, we have recorded a particular dissatisfaction with salary and allowances that should be addressed by employers across the region in order to avoid a situation in which talent could migrate elsewhere. We believe that this is absolutely doable, especially when you know that the majority of MENA respondents expect business conditions to get better in a year’s time.”
“At Bayt.com, we conduct our Middle East and North Africa Consumer Confidence Index surveys in order to understand and chart changing confidence levels as well as challenges and pressures as the region goes through different economic cycles. Our research aims to provide employers and jobseekers alike with up-to-date information that is both relevant and reliable to use as a reference for better decision making,” added Al-Masri.
Suhail Shaikh, Director, YouGov stated: “Although some countries in the region, such as those in the GCC, are more likely to see further economic buoyancy, the rising cost of living will be a major hurdle for most in the MENA region. People in the Levant and North Africa are more likely to feel the financial burden as their economies battle against the socio-political uncertainties.”
Data for the Bayt.com Middle East and North Africa Consumer Confidence Index Survey - March2014 was collected online from February9-24,2014, with6,728 respondents aged18 years and above. Respondents were from the UAE, KSA, Kuwait, Oman, Qatar, Bahrain, Lebanon, Syria, Jordan, Egypt, Morocco, Algeria, and Tunisia.