The latest results from the recent Consumer Confidence Index survey carried out by Bayt.com, the Middle East’s number one job site, and research and consulting organisation, YouGov, shows that UAE residents still have a positive outlook of the country’s economy, as well as their financial future despite moving down the consumer confidence index by1.3 points. The survey revealed that62% feel that the current salary is not in line with the cost of living, with33% stating buying consumer durables is not practical in the present situation.
According to the quarterly MENA Consumer Confidence Index survey by Bayt.com, prospects for the future appear quite positive from the UAE survey takers, with54% believing that their financial position will improve in a year’s time, while a good16% claim it will stay the same and only8% believe it will get worse. In parallel,46% of UAE respondents expect that the UAE’s economy will get better within the same time frame. However, this claim won’t essentially mean an increase in the number of jobs. Only35% of UAE respondents think there will be more jobs available in a year’s time, while51% feel there will be either no change or fewer jobs.
Similarly,26% seem pessimistic towards the possibility of increase in their organisation’s employee-count in the coming quarter, while only21% felt the opposite and believe that there will be a positive growth, and a good36% share a neutral outlook on the same. Likewise, companies addressing staffing requirements in the coming three months show that38% of UAE survey takers are neutral, with18% who seem optimistic and less than one-third (28%) appear quite pessimistic.
“While a certain number of countries witnessed a drop in their Consumer Confidence Index since last quarter, the region’s overall sentiment towards the future remains positive. It will be interesting to see if the region can slowly, but surely reach a long-term period of true stability in the near future,” explained Amer Zureikat, VP Sales at Bayt.com.
With regards the respondents’ present situation in the UAE,39% have experienced no change, and the financial situation is worse for29% of survey-takers, while only26% have had an improved financial position in comparison to the previous year.The survey’s respondents also remain doubtful on the current attitude towards purchasing of consumer durable goods, with33% of UAE respondents saying ‘now is a bad time to buy. Only17% believe that this is a good time to buy, while a whopping42% stay neutral. Additionally, with66% of UAE residents opting to shy away from investments in property and54% from purchasing a car in the next12 months, only a mere18% will look into investing in properties and33% in a car. From those who are willing to do such investments in a year’s time,73% said they will be buying a ‘new’ property and52% a ‘new’ car, while42% said they will opt for a used one.
“We conduct our quarterly Middle East Consumer Confidence Index Survey in order to chart how consumer confidence levels are changing as the region goes through different economic cycles, and faces the challenges and pressures wrought by economic trends and events across the globe. This seeks to provide all stakeholders, from regional businesses to local organisations and HR professionals with up-to-date information that is both relevant and reliable as a snapshot of current market trends,” added Zureikat.
When it comes to employment, only16% of UAE respondents appear to be highly satisfied with their career prospects, while43% have neutral sentiments, and35% are displeased. Correspondingly, only17% appear to be highly satisfied with their career growth in their current organisation, while39% seem unhappy and41% are neutral.
“Gauging consumer opinion is a powerful tool for revealing the current attitudes and sentiments about the business and economic conditions in a specific country, and to see how these change overtime,” commented Sundip Chahal, Chief Operating Officer of YouGov.
Data from the Consumer Confidence Index survey shows that feelings towards the level of job security in the UAE are relatively balanced with24% saying they are highly satisfied, while40% have neutral feelings towards their job security; and30% being unsatisfied.
Data for the quarterly Bayt.com Consumer Confidence Index (September2011) survey was collected online from24th August to20th September2011, with7,864 respondents from the UAE, KSA, Qatar, Oman, Kuwait, Bahrain, Syria, Jordan, Lebanon, Egypt, Morocco, Tunisia, Algeria and Pakistan. Males and females aged over18 years old, of all nationalities, were included in the survey.