Results from the recently concluded Consumer Confidence Index survey conducted jointly by Bayt.com, the Middle East’s number one job site, and research and consulting organisation YouGov, shows that residents in Kuwait hold an optimistic view of their personal financial future, as well as of the country’s economy. However, a majority of surveyed employees feel that the current remuneration is not in line with the cost of living, with only22% believing that now is a good time to buy consumer durables.
According to the quarterly Bayt.com MENA Consumer Confidence Index survey, expectations for the future are primarily positive amongst respondents from Kuwait, with49% believing that their financial position will improve in a year’s time, which is a reflection of sentiment from across the Middle East region. In correlation with this,54% of respondents expect that Kuwait’s economy will take a turn for the better within the same time period, with a majority (56%) also believing that this will bring around better business conditions. This, according to29% respondents, will result in more jobs becoming available in the region.
Despite this, there is a neutral sentiment expressed by a majority of the respondents (36%) towards the likelihood of increase in their organisation’s employee-count for the coming quarter, although an almost equal32% of respondents think there will be a positive growth, with23% sharing a pessimistic outlook on the same. The percentages are similarly weighted in terms of their company meeting staffing requirements in the coming three months – the majority are neutral (a trend that is echoed across the region), with24% optimistic and18% pessimistic.
“The overall feeling is that while the coming year will be favourable for business and corporations, this may not necessarily reflect on employees’ benefits,” explained Amer Zureikat, VP Sales at Bayt.com. “At Bayt.com, we work towards creating a solid platform of statistics and a valuable insight to share with employees and employers alike. As the number one job site in the Middle East, we provide reliable date from a significant cross-section of the region’s population.”
With regards to the respondents’ present situation, the general feeling across the region is that the financial situation for them and their family is no different than it was within the previous year; among respondents in Kuwait also a similar sentiment is observed, albeit with a slightly higher percentage (38%). A close33% believing there has been a positive improvement in their financial position vis-à-vis last year, with22% claiming a change for the worst. The overwhelming majority state that in comparison to last year, their salary has not kept pace with the cost of living in Kuwait.
This reflects on the current attitude towards the purchasing of consumer durable goods, with only22% of Kuwait’s respondents feeling that this is a positive time to buy. An equally split70% believe that this is a neutral to bad time to purchase, with most opting to shy away from investments in property and purchase of new cars during the next12 months. Among the40% who are looking to purchase vehicles,47% say they will invest in a new car, this percentage is marginally upped by48% who indicated their preference for a used car. As far is property is concerned,64% of would-be investors will look to invest in new properties.
In terms of employment, neutral sentiments are held by a majority (42%) towards their current employment situation. Almost a quarter (22%) of respondents appear to be satisfied with their current job and career prospects, with33% indicating low satisfaction. With reference to the possibility for career growth in their current organization, a collective66% indicated neutral (36%) or low (30%) satisfaction.
Survey statistics show that feelings towards the level of job security in Kuwait are predominantly neutral (36%), though this is closely followed by30% who feel that their level of job security is low, and29% who feel positively about it.
“Our survey demonstrates that the majority of employees in Kuwait are indifferent or less to their current career status, which shows that there is definite room for improvement. The general sentiment is that an increase in salary could be due, in correlation with inflated costs of living,” concluded Zureikat.
Data for the quarterly Bayt.com Consumer Confidence Index survey was collected online from June1 – July17,2011, with7,245 respondents aged over18 years, covering GCC Arab, North African, Levant, Western Expatriate and Asian nationalities. Countries who participated are UAE, Saudi Arabia, Kuwait, Oman, Qatar, Bahrain, Lebanon, Syria, Jordan, Egypt, Morocco, Algeria, Tunisia and Pakistan.