Earlier last week, we learned through the latest Bayt.com Consumer Confidence Index survey that the overall consumer confidence in the Middle East region had jumped to 347.87 in September from 285.83 in March. But what does that mean? It means that, overall, people in the Middle East are more optimistic about the different components of their life than they were six months ago. But please, let’s keep the ‘overall’ in mind because, as you will see, most people in the Middle East aren’t 100% satisfied. And, as you will see, people in different parts of the Middle East have different satisfaction levels. If you’re familiar with the Bayt.com research calendar then you will know that, among its monthly research reports, Bayt.com conducts the bi-annual Bayt.com Consumer Confidence Index survey to understand the perceptions and attitudes of consumers in the Middle East regarding the economy of their countries, their personal financial and job situation, their likelihood to purchase and invest, and the job market in general. So what are the results of the latest Bayt.com Consumer Confidence Index survey for the Middle East? And how will that affect you? We’ve summarized the survey’s findings for you to anticipate where the region is heading. No surprises here… The GCC is doing better than the rest of the region High levels of optimism can be seen for the future across countries in the GCC region, where 46% of the respondents expect their personal financial situation to improve in the next six months, although the majority claims that their present finances are the same as they were six months ago. When asked about the expected change in cost of living, 71% say they expect it to increase in the next six months. The highest proportion of those was from KSA (76%) and the UAE (73%). With 53% of respondents saying that conditions in Qatar are ‘good’ or ‘very good’, it would appear to be one of the best places for business at present as per the Bayt.com survey. Employment opportunities seem to be the highest in the UAE and KSA, followed by Qatar and Oman. In general, respondents anticipate more jobs in the coming six months. Overall, respondents in the GCC countries seem to be especially happy with their current situation, in terms of job and the country’s economic stability. However, with the majority of respondents anticipating an increase in living costs and having experienced a decrease in savings, it may be time for all to take an evaluative look at the stability of personal financial situations. Expectations for a better future in North Africa Although some North African countries may not be completely satisfied with the current economy in their countries of residence, the majority of North Africans have high expectations for a better economy, more jobs and better business conditions. In fact, 47% of respondents in Algeria expect their personal financial situation to improve in the next six months. These percentages are 45%, 44% and 40% for Egypt, Morocco and Tunisia, respectively. As for the country’s economic situation, 47% of respondents in Egypt expect their home country’s economy to improve in the next six months, compared to 41% in Morocco, 38% in Algeria, and 24% in Tunisia. The same optimism applies to expectations for better business conditions, as 64% of respondents in Egypt anticipate better business conditions in the next six months, followed by Morocco (57%), Algeria (51%), and lastly Tunisia (49%). Regarding the future availability of jobs, respondents in Egypt are the most optimistic about a possible increase in the number of available jobs with 31% saying there will be more jobs in the next six months. 23% of respondents in Algeria said the same, followed by Morocco (22%) and Tunisia (18%). Jordan and Lebanon among least confident in the region When asked about their expectations about the anticipated cost of living, an overwhelming 90% of respondents in Jordan said that they expect the cost of living in Jordan to increase. Jordanians also came in second place in the evaluation of their current personal finances, just after Syria, as 43% say their finances are worse now than they were six months ago. Lebanon came in third position with 36% saying they were worse off than six months ago. Again, the three Levantines were the most pessimistic regarding their personal finances outlook for the next six months, with Syria at 46%, Jordan at 23%, and Lebanon at 16%. Feelings in Jordan perhaps come as little surprise as economic recovery has been held back somewhat these last few months by reported tax hikes, government spending cuts and weaker regional growth. The survey also suggests that the majority of Lebanese will be avoiding major purchases in the near future. 59% of respondents do not have plans to buy a vehicle and only one fifth are looking to buy property within the coming year. Gloomy economic outlook in Syria amid unrest Expectations are high among the Syrian people about a further deterioration in the performance of the Syrian economy during the coming months. According to the Bayt.com Consumer Confidence Index survey, Syria ranked last among the Arab states in terms of their confidence toward a better economic situation. Specifically, 63% of Syrians said their personal financial situation has deteriorated, while 46% expect it to become worse in the coming months. In terms of economic performance, 84% of Syrian residents surveyed indicated that the Syrian economy is deteriorating relative to where it was six months ago, and while only 3% predicted an improvement in the overall business conditions in the future, 78% said that jobs in Syria were scarce. Indicators about deteriorating economic conditions are obvious on the ground with many commercial shops, factories, hotels, and restaurants closing their doors. For more, download the latest Bayt.com Consumer Confidence Index survey for the Middle East and North Africa. Photo credit: marcp_dmoz on Flickr
