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 residents in the region are anticipating the cost of living to increase in the coming year, although their financial positions have not improved.In Lebanon, only12% of respondents claim that they are in a better position now compared to six months ago. However, MENA respondents have an optimistic outlook for the months to come, with44% expecting their personal or family’s financial situation to improve in the next six months.
Personal Economic Situation
Regional Sentiment
Only18% of respondents across the MENA region claim that they are in a better financial position now than they were six months ago. Only15% across the region say that their savings have increased in the last year, with25% saying they have remained the same. However, hope for the future is high, with44% expecting their financial situation to improve in the next six months.
Conversely,78% believe that the cost of living in their country will increase. Only32% will look to buy a vehicle in the next12 months (of which the majority (48%) will opt for a used vehicle), and only20% are looking to buy property within the same time frame. Those intending to invest in property will primarily look for new (57%) apartments.
In terms of smaller purchases, desktop or laptop computers remain the most popular anticipated purchase (27%), followed by furniture (18%) and LCD or Plasma televisions (17%).
In Lebanon
As far as their current financial situation is concerned,43% of Lebanonrespondents say that there has been no change in the past six months, while40% claim things are now worse;60% say that their savings have depleted in comparison to last year. However,32% believethat things will be better in the coming six months. Despite this optimism,79% believe that the cost of living in the country will increase within the same timeframe.
The majority of Lebanonresidents (62%) are not considering buying a personal vehicle in the next12 months. Of the24% who claim they are looking to make a purchase,39% will choose to buy a new vehicle, while44% will opt for a used one. In terms of property,only15% are looking to invest; interests lie in buying new apartments.
Desktop or laptop computers (21%), furniture(17%) and LCD or plasma televisions (11%) will be the top purchases made in the coming six months.
Country’s Economic Situation
Regional Sentiment
While the overall regional sentiment towards the present economic situation is negative with44% of MENA respondents claiming it has grown worse in comparison to six months earlier, vast disparities are recorded between countries, with as much as71% separating the two extremes. Unsurprisingly, the disparity very much has to do with the political landscape affecting different countries in the MENA. In Syria, for example,85% claim the situation now is worse, whilein politically-stable countries like Oman, Qatar and UAE, only14% of respondents claim the same. Business conditions are, for the most part, considered to be average or good, especially in GCC countries, and33% of MENA professionals believe there are few jobs available now across few industries.
Expectations for the future are high in the majority of countries, with most expecting the national economic situation to be better, and all anticipating better business conditions. Yet, there is little anticipation for more jobs to be available; only29% state there will be an increase in employment opportunities, while28%say things will stay the same.
“At Bayt.com, our mission is to empower people to lead their lifestyle of choice,” said SuhailMasri, Vice President of Sales, Bayt.com. “This of course is very much related to finding the right job that satisfies professionals in terms of compensation, type of work, and work-life balance. Our team works in12 different offices around the MENA to make sure that we have as many job opportunities as possible available free of charge for our members, in an easy-to-use format that makes the process of finding a job as simple as possible. In order to further increase hiring opportunities for our members, we also have the JobsLite product, which offers free job postings to small-to-medium businesses in the region.”
In Lebanon
Of the respondents in Lebanon,4% state that the country’s economyhas improved in the last six months, and18% claim that business conditions now are either ‘good’ or ‘very good’. The outlook for Lebanon’s future isslightly more hopeful;12% believe that the economic situation will continue to improve;38% anticipate better business conditions,though only8% think there will be more jobs available.
Current Job Perspective
Regional Sentiment
Hiring and downsizing rates seem to be relatively balanced on the regional level. In comparison to six months ago,29% of respondents say they now have fewer colleagues;34% say that there has been no difference, and30% say that their company has hired more employees.There is an even split between respondents when it comes to their predictions for the future: an equal35% state that their company will have more or the same number of employeesin the next six months.
The majority of respondents (41%) are currently satisfied with their career growth opportunities in their current job, though46% are dissatisfied with their compensation and allowances, compared to just33% who are happy. In terms of non-monetary benefits,43% are happy, while38% aren’t. In terms of job security,41% claim to be satisfied.
In Lebanon
According to respondents, only23% companies have seen an increase in employees in the past six months. Threein ten respondents (25%) believe their company will hire in the next six months.
Respondents in Lebanonare satisfied with theircareer growth opportunities (41%), non-monetary benefits (41%) and job security (44%).However, while29% claim to be satisfied with their current compensation,42% are unhappy with it.
“There is a lot of conflicted sentiment across the region at present, with clear disparities between regions within the MENA – especially between the GCC, and the Levant and North Africa. The GCC seems to be faring especially well on the whole, with Oman, Qatar, KSA and the UAE coming out amongst the highest in terms of current status and future prospects,” said Masri. “Bayt.com’s CCI Survey allows us to examine the region as a whole, delving specifically into those areas that most affect job seekers.”
SundipChahal, CEO, YouGov, commented that: “The disparity between regions in the MENA is to be expected, given current events in those countries with the lowest positive responses. However, there is a brighter outlook for the region as a whole, with the majority of people looking forward to an improved business environment; this, in turn, should boost employment and economic situations.”
Data for the quarterly Bayt.com Consumer Confidence Index survey (March2013) was collected online from February12 to28,2013, with16,379 respondents aged over18 years, covering the GCC, North Africa, Levant, Western Expatriate and Asian. Countries thatparticipated are UAE, KSA, Kuwait, Oman, Qatar, Bahrain, Lebanon, Syria, Jordan, Egypt, Morocco, Algeria and Tunisia.