The latest Middle East and North Africa Consumer Confidence Index Survey, conducted by Bayt.com, the Middle East’s number one job site, and YouGov, a research and consulting organisation, shows that the current situation for residents across the region is little improved, compared to last year. However, in Kuwait as well as around MENA, respondents are optimistic for the year to come.
Regional Sentiment
Sentiment across the region in regards to the current situation is generally negative. Only26% of respondents claim that their personal financial situations have improved in the past12 months, while32% state that things have become worse. Along the same lines,34% believe that their country’s economy has declined within the same time period, which leads to this being considered to be a ‘bad time to buy’ consumer durables, according to four out of ten (43%).
Similarly, a third of respondents (34%) believe that business conditions are bad, and, linked to this, employment conditions are poor, with half of those responding (49%) saying there are ‘very few jobs available’. The majority of employees (32%) state that they now have fewer colleagues than they did last year, and, compared to the same time12 months ago, salary has not kept pace with the cost of living for69% respondents.
Respondents are generally dissatisfied with their working life. The majority (40%) believe that their current job, career prospects and opportunities for growth are low, while50% are unhappy with their current compensation, and68% say that their job security is neutral to low.
Employees have a neutral outlook for the future of their organisation:35% do not believe there will be any change in the number of employees in their current company, and37% believe there will be no difference in keeping up with staffing requirements.
“The present sentiment across the region seems to be somewhat conservative. However, our respondents demonstrated positive sentiment for the future. This level of optimism demonstrates that the lingering effects of the recent economic slump are nearly gone, as people look forward to a financially better2012,” said Suhail Masri, Vice President of Sales, Bayt.com. “Our surveys allow us to assess the sentiment of the region as it happens. This gives us up-to-date information on the latest trends in recruitment, while providing employers and job seekers alike with the information they need.”
According to survey respondents,2013 will be a better year all round. Personal financial situations are expected to improve (as stated by49%); business conditions will get better (according to50%), and there will be more jobs available as a result (according to34%). While44% believe that their country’s economy will improve,22% believe the opposite to be true.
Despite this hope, there is still negative sentiment;39% state that inflation and the cost of living will increase, and a further36% believe that the cost of real estate will go up.
In the next12 months, only27% of respondents will consider purchasing a new vehicle, of which51% will buy new. Within the same time frame,20% will consider purchasing property; of these,65% will also be looking to buy new.
The three most popular consumer purchases for the next six months will be desktop or laptop computers (25%); furniture (19%) and LCD or plasma televisions (17%).
“It is evident that events taking place in some of the MENA countries are clearly having a repercussion on the region as a whole. People expect things to stabilize in the coming year and hence have a positive outlook,” said Sundip Chahal, CEO, YouGov.
In Kuwait
In Kuwait, sentiments are slightly better than those felt elsewhere in the MENA region. Seven out of ten (66%) respondents say that their current financial situation either hasn’t changed or has improved in the past year, and38% state that Kuwait’s economy has stayed the same. The majority of respondents (82%) claim that this is a neutral or bad time to buy, while45% state that business conditions are neutral. In terms of employment conditions,81% claim that there are currently ‘not many’ or ‘very few’ jobs available.
The majority of respondents (63%) state that there are now either the same or fewer employees in their current company, and71% claim that their salary did not keep pace with the cost of living in Kuwait.
This is likely affecting levels of career satisfaction;83% say their prospects in their current job are neutral to low, while79% state the same for their potential for career growth. Three quarters (72%) of respondents say their level of job security is neutral to low, and49% are dissatisfied with their level of compensation.
In line with the feelings around the rest of the region, the majority of sentiment towards company growth and meeting staffing requirements in the next three months is neutral.
Kuwait respondents believe that the cost of living will increase in the coming12 months (according to40%), and that the cost of real estate will also go up (41%).Many are looking forward to a more positive year, however. Six out of ten (56%) believe that their personal financial situation will improve, and43% believe Kuwait’s economy will improve. The majority believe that business (47%) and employment (31%) conditions will follow suit.
In the next12 months,28% of Kuwait respondents will consider buying a vehicle, of which33% will buy new. A fifth (21%) will consider buying property – they will mostly prefer to buy new (77%).
The most popular consumer purchases for the next six months will be desktop or laptop computers (24%); furniture (21%), and LCD or plasma televisions (16%).
Data for the quarterly Bayt.com Consumer Confidence Index survey (October2012) was collected online from September30 - October14,2012, with10,094 respondents aged over18 years, covering GCC Arab, North African, Levant, Western Expatriate and Asian nationalities. Countries who participated are UAE, KSA, Kuwait, Oman, Qatar, Bahrain, Lebanon, Syria, Jordan, Egypt, Morocco, Algeria, Tunisia and Pakistan.