The latest Middle East and North Africa (MENA) Consumer Confidence Index (CCI) Survey, conducted by Bayt.com, the Middle East’s number one job site, and YouGov, a research and consulting organisation, shows that respondents across the region anticipate a rise in the cost of living in their country in the next6 months. Kuwait is no different; however, respondents are mostly positive that their personal financial situation will improve within the same period.
Personal Economic Situation
Regional Sentiment
Almost a fifth (19%) of the region’s respondents state that their financial situation has improved compared to6 months ago, with the majority,43%, claiming that it has remained unchanged, and29% claiming it has become worse. Half (52%) state that their savings have decreased in comparison to last year.Expectations for the future are high though, with half of the survey’s respondents (46%) anticipating their personal financial situation to improve in6 months. Somewhat contrary to this is that71% predict that the cost of living in their country of residence will increase in the months to come.
In terms of making major purchases, the majority of respondents in all countries surveyed, with the exception of Oman, do not expect to buy a vehicle in the coming12 months. For those who will be looking to purchase a vehicle, the majority,48%, will buy a used one, compared to45% who will buy new.
When it comes to property,63% of the region’s respondents – the majority in every country covered by the survey – will not be buying in the next12 months. For the minority that are considering buying, new properties are more desirable than pre-owned (56% versus28%), while50% of respondents want to buy an apartment as opposed to a villa (21%). A fifth (19%) will be looking for commercial property.
Three out of10 (28%) respondents are planning to purchase a desktop or laptop computer in the next6 months. Other popular purchases are anticipated to be furniture (20%) and LCD or plasma televisions (18%).
In Kuwait
Seven out of10 (72%) of Kuwait respondents state that their personal financial situation is now either the same as, or worse than it was6 months ago, with only22% claiming it has improved. Only15% claim that their savings have increased in the last year, compared to48% whose savings have decreased. The majority (58%) expect their personal financial position to improve in the6 months to come, though69% also believe that the cost of living will increase within the same time.
In the next12 months,53% of Kuwait respondents do not plan to buy a vehicle, while the36% who do intend to purchase will look for a new vehicle (52%, compared to35% who will buy used). A quarter (25%) are looking to buy property within the coming year, with38% of these looking for a villa, and60% of respondents preferring new properties.
Consumers are looking to predominantly buy desktop or laptop computers (24%), furniture (27%) and LCD or plasma televisions (21%) in the coming6 months.
Country’s Economic Situation
Regional Sentiment
The majority of respondents across the region (36%) believe that the economy in their country of residence has receded in the last6 months, especially so in Syria (84%), Jordan (66%), Lebanon (65%) and Tunisia (63%). The situation is considered to have improved most in Oman and Qatar (43% each), followed by the UAE (39%). These three countries also have the strongest predictions for a better economy in the future, while across the board,42% of regional respondents anticipate things to improve.
Business conditions are, on the whole across the MENA region, considered to be ‘average’ by a majority41% of respondents, while32% claim that things are ‘good’ or ‘very good’. With53% of respondents saying that conditions in Qatar are ‘good’ or ‘very good’, it would appear to be the best place for business at present as per the Bayt.com survey. Expectations are high across the region for conditions to get better in a year’s time.
Employment conditions are considered to be difficult, with32% of regional respondents stating that ‘there are few jobs available across few industries’, and26% stating that ‘there are few jobs available across various industries’. Employment opportunities seem to be the highest in the UAE and KSA, followed by Qatar and Oman. In general, respondents anticipate more jobs in the coming6 months, with the exception of Syria, Jordan and Lebanon, who anticipate a decrease in employment opportunities.
In Kuwait
Three out of10 respondents (29%) believe that Kuwait’s economy has improved in the last6 months, while39% state that it has remained the same. Half (54%) anticipate better things to come in the next6 months. Business conditions in Kuwait are believed to be ‘good’ (30%) or ‘very good’ (7%), with44% stating that they are ‘average’, while61% of respondents anticipate them to improve in a year’s time.
In terms of employment opportunities,26% of Kuwait respondents state that ‘there are few jobs available across various industries’, and22% believe that ‘there are few jobs available across few industries’. Four in10 of all Kuwait respondents (38%) expect there to be an increase in jobs in Kuwait in the next6 months, while24% expect the situation to remain the same.
Current Job Perspective
Regional Sentiment
When asked whether there have been any changes in the number of employees at their company in the last6 months, the majority of respondents (33%) say that there have been no adjustments;30% say that they now have more colleagues, and29% say that they have fewer. Just more than a third (36%) expect their company to hire in the coming6 months, while35% expect there to be no changes.
The majority of respondents (43%) are satisfied with the career growth opportunities that their company presents them – especially so in Oman (60%) and Qatar (52%). Satisfaction with salary and allowances is low across the region, with57% of respondents being dissatisfied. Those most happy with their compensation live in Oman (48% satisfied), Qatar (44%) and Kuwait (43%). However,44% of respondents are happy with their non-monetary benefits, particularly in Algeria (57%), Oman (52%) and KSA (52%). Levels of job security are also high, with44% satisfied. Algeria (59%), Oman (56%) and Kuwait (55%) seem to offer the highest level of job security.
In Kuwait
Four out of10 (35%) respondents in Kuwait state that their companies have grown, employee-wise, in the last6 months, while24% say that there has been a decrease in the number of people working with them. The majority (43%) expect there to be growth in the number of employees in the coming6 months.
Kuwait respondents are satisfied with their career growth opportunities (51%),current compensation (43%), non-monetary benefits (39%), and job security (55%).
“It’s clear to see which countries are currently perceived by residents to be more favourable to live and work in than others; countries within the GCC seem to be preferable for their current economic situations and the business conditions that comes with such. The Levant seems to be less popular at present, most likely influenced by regional political situations,” said Suhail Masri, VP of Sales, Bayt.com. “At Bayt.com, we specialise in empowering the region’s job seekers and employers by providing them with the latest vital statistics relating to recruitment.”
“Respondents in the GCC countries seem to be especially happy with their current situation, in terms of job and the country’s economic stability. However, with the majority of people anticipating an increase in living costs and having experienced a decrease in savings, it may be time to take an evaluative look at the stability of personal financial situations,” said Sundip Chahal, CEO, YouGov.
Data for the quarterly Bayt.com Consumer Confidence Index survey (September2013) was collected online from July28-August152013, with6,585 respondents aged over18 years, covering the GCC, North Africa, Levant, Western Expatriate and Asian. Countries that participated are UAE, KSA, Kuwait, Oman, Qatar, Bahrain, Lebanon, Syria, Jordan, Egypt, Morocco, Algeria and Tunisia.