JEDDAH, 14 February 2007 — Consumer confidence in Saudi Arabia grew stronger in the second half of 2006, elevating the Kingdom to top place in the Middle East and Levant region.
In the latest MasterIndex survey covering five economic factors — employment, economy, regular income, stock market and quality of life — consumers across Saudi Arabia were highly optimistic about their future.
The current Saudi Arabia MasterIndex score of 97.3 out of a possible score of 100 is a significant improvement on the 88.5 score received six months ago, Shaun K. Rashid, senior business leader of MasterCard Worldwide for Middle East and Levant told a press conference at the Jeddah Hilton yesterday.
The score is, however, in line with the buoyant index scores shown in previous MasterIndex surveys, he said, adding that confidence appeared to be restored to the market’s high levels of a year ago and preceding periods. In the Middle East and Levant, the Kingdom is ranked first in overall consumer confidence, from second place in the last survey conducted six months ago in which Kuwait was ranked top, Rashid said.
The most significant increase in the Saudi index score was the rise in consumer sentiment on the stock market, which rose to 95.8 from 82.1 up 13.7 points from the last survey six months ago. The Kingdom saw improvements on all the factors surveyed. Perceptions in quality of life rose to 97.6 from 92. 3, regular income rose to 96.5 from 92.8, sentiment on economy improved to 98.8 from 89.7 and employment rose to 97.9 from 85.5, the second highest leap at 12.4 points.
Looking at the SAMEA region as a whole, Saudi Arabia (97.3 vs 88.5 six months ago) topped the list with the highest consumer confidence index score followed by Kuwait where the result stayed the same (94.5 vs 94.5 six months ago).
Real GDP for the region has expanded by some 6.5-7 percent during 2006 and growth is expected at similar rates into 2007.
Commissioned by MasterCard Worldwide and conducted biennially in selected markets in South Asia, Middle East and Africa (SAMEA), the survey analyses consumers’ perceptions of economic conditions over the six months ahead. The MasterIndex has a range of 0 to 100 with 50 as the mid-point. A score above 50 indicates that consumers are optimistic about the economic climate, while a score below 50 signals that consumers are pessimistic about the economic situation.
The countries surveyed are Saudi Arabia, Kuwait, the UAE, Lebanon, Egypt, South Africa and India. Biennial MasterIndex surveys have been held across SAMEA for the past three years.
