Employee confidence has witnessed a marked improvement in Kuwait, according to recent research conducted by the Middle East’s number one job site - Bayt.com in conjunction with research specialists YouGovSiraj. General consumer confidence by contrast has declined across the whole GCC region, dipping by9 index points in the UAE,7 in Qatar and3 points in Saudi Arabia and Kuwait, as compared to levels measured in January of this year. Of the surveyed North African countries, Egypt also noted a dip in confidence of8 points, while Algeria witnessed a marked improvement, moving up2 index points.
The Consumer Confidence Index (CCI) is a measure of consumer expectations and satisfaction of various elements of the economy including inflation, job opportunities and cost of living.
One aspect of determining the CCI is to assess whether respondents’ current financial position is perceived to be better – or worse – than the previous year. The research reveals that34% of all respondents feel that they are in a better position than last year.
The drop from previous scores in terms of consumer expectations and optimism towards the future was most notable in Qatar, the UAE and Egypt, dropping by11 points in Qatar and6 points in the latter two. Kuwait however remained relatively stable in terms of consumer expectations – dropping only one index point. All respondents remain optimistic that their country’s economy would be better in a year’s time – with respondents in Oman and Bahrain at48% and44% respectively registering as the most optimistic.
As part of the index, the respondents were asked to rate how they found the current economic climate in terms of good, neutral or bad for buying consumer goods. The conclusive results were largely negative – only19% of all respondents cited it as a good time to buy and38% consider it bad. In Kuwait, respondent’s confidence in the economic climate dropped by10 points, while the most marked decrease in the index was the UAE – dropping by18 points, followed by Egypt, which dropped12 points. Saudi Arabia marked a slight improvement, suggesting consumer spending behaviour could improve in the Kingdom.
The decrease in Kuwait’s willingness to spend at this current period could offer an opportunity for marketers planning summer sale campaigns. With consumers less keen to be spending money, those brands offering the most value and the best discounts can capitalise on the prevailing reluctant attitudes towards spending.
“Consumer opinion is one of the most powerful tools in reflecting prevailing attitudes and sentiments about the current business and economic conditions in a particular country. By monitoring this data, all types of industry and professional personnel can learn and benefit from the sound insights, by using them to forecast and understand key trends and improve and develop business activities correspondingly in the future,” says Bayt.com’s CEO, Rabea Ataya.
The consumer confidence index also seeks to measure the confidence of employees in their current work, and to measure their individual attitudes and satisfaction towards the local job market in general. Employee confidence in Kuwait recorded a considerable improvement moving up five points – the same improvement was recorded in Algeria. Of Kuwait’s respondents,37% stated that it was a good time for doing business versus20% indicating it was a bad time and33% indicating it was a neutral time. KSA and Qatar both recorded minor slumps falling by two points and a point respectively, while the most significant decrease was in the UAE, which dropped4 points. Qatar and Oman recorded the most positive attitudes towards current business conditions.
The research also indicates respondents’ satisfaction in terms of their work remuneration: only19% of all respondents cited that their salary had increased to keep pace with the cost of living, while an overwhelming63% stated that their remuneration had not kept up – this figure matched the average in Kuwait, compared to the67% registered in January’s results. The most unsatisfied in this respect were respondents in the Levant countries of Jordan, Syria and Lebanon.
“At an overall level, dropping consumer confidence indices may not be a prediction of economic performance but could well be a reflection of the far reaching effects of inflation. This could put pressure on premium brands as consumers seek out better value propositions. One of the potential trends that could emerge from sustained high levels of inflation could be the growth of price brands. Most developed nations are witnessing such a trend where consumers are looking for brands offering them better value for money,” says Nassim Ghrayeb, CEO, YouGovSiraj.
“On the employment front, the largest drops in terms of anticipated availability of jobs in a year’s time came from Qatar and the UAE, suggesting prevailing attitudes that jobs in the region are becoming harder to come by. Optimism in Kuwait remained at similar levels to January’s results, dropping by one per cent in terms of whether more jobs would be available to36%, while those believing there will be fewer jobs available stayed even at24%. The sentiment that there are fewer jobs available was felt by the other surveyed GCC countries,” he added.
“Stakeholders in the HR industry and pan-regional recruitment websites like Bayt.com can greatly benefit from data such as this, as it provides detailed insights into how the people of the region are really feeling about the situation in their country. Specifically, this timely and relevant data helps all involved in the recruitment industry understand how people are feeling about their jobs, career growth potential and salary levels, while offering a valuable driver for prompting positive change,” concludes Ataya.
The data for the May2008 Consumer Confidence Index Survey was collected online between the period of7th April and18th May2008, with13,026 respondents across the UAE, KSA, Qatar, Oman, Kuwait, Bahrain, Syria, Jordan, Lebanon, Egypt, Morocco, Tunisia, Algeria and Pakistan. Males and females aged between20 and62, of all nationalities, were included in the survey. The survey and other Middle East Human Resources research is available on www.bayt.com.