MANAMA, 22 August 2007 — The overall economic development and access liquidity in the region has boosted the confidence of working class in this part of the world as around 62 percent in the region believe their personal financial situations will improve in the year ahead, compared to 59 percent in the company’s April survey.
Overall, respondents showed a modest rise in confidence in such areas as job availability, business conditions and inflation, according to the second Consumer Confidence Index (CCI) conducted by Bayt.com and YouGov Siraj.
The survey had covered Consumers Confidence Index (CCI), Consumers Expectation Index (CEI), Employees Confidence Index (ECI) and Propensity to Consumer/Spend Index (PCI).
Bayt.com, the Middle East’s number one job site, conducts CCI surveys on a quarterly basis in conjunction with YouGovSiraj, a leading market research leader. The latest survey drew a notable 12,518 respondents, male and female across the GCC, Levant and North Africa.
Responses were categorized according to nationality, country of residence and income bracket.
Some 55 percent of UAE respondents said they felt upbeat about their country’s economic prospects, a figure that reached a low of 27 percent in Lebanon and a high of 59 percent in Qatar. Such indices are considered to be a vital gauge of a country’s economic wellbeing, and a reliable predictor of future trends.
Local results indicate that consumer spending in the UAE economy is at a high potentially due to increased tourism during the summer months and the inclination of residents to take advantage of seasonal special offers and the Dubai Summer Surprises promotions.
The Propensity to Consume Index for the UAE registered a robust 103.6 for the UAE in July versus the 100 benchmark of April.
“People in the UAE are taking advantage of seasonal offers, but we see similar increases in anticipated spending across all countries,” said Rabea Ataya, CEO Bayt.com. “The implications of this upward trend are significant. Consumer confidence doesn’t only reflect current economic conditions but fuels future growth.”
The rise in consumer confidence is being driven in part by perceptions that job opportunities will be healthy in the year ahead.
Across the region, 69 percent of respondents thought that employment availability would remain at current rates or improve. In Qatar, that figure rose to 84 percent, while in the UAE and Saudi Arabia it was 73 and 76 percent respectively.
Some 46 percent of consumers in Qatar and 41 percent in Saudi Arabia and Kuwait believed that their families’ current financial position was better than that of the previous year. In the UAE, Saudi Arabia and Qatar, 51 percent, 57 percent and 58 percent respectively felt that in the current period, business conditions were good.
Asians once again had the highest levels of confidence, with 68 percent upbeat about their personal financial prospects and 63 percent saying they expected economic improvements in their resident countries in the year ahead. Some 62 percent of GCC nationals felt a similar optimism, while only 44 percent of Westerners predicted a good year ahead for their resident countries.
Employees in the private sector remained the most upbeat about their personal situations and country’s economic prospects. By salary, people in the $5001-to-$6000 per month bracket were among the least positive about their current situations, with only 42 percent expressing satisfaction, but the most confident about the future, with 71 percent saying they saw better things ahead.
As with the April survey, there were some points of contention among consumers. Only 14 percent of people in Qatar and 13 percent of Saudis expressed high satisfaction with their current salaries. This figure dipped to 8 percent in the UAE, among the lowest in the region. Some 63 percent of UAE residents felt that wages had not kept pace with the cost of living. The UAE saw a 4 percent decrease among those who thought their country’s economy had improved.
“These figures, while not particularly encouraging, are still extremely valuable,” Ataya said.
“Knowing, for instance, that consumers feel their wages aren’t keeping up with prices allows people who have an influence in these matters to work to set things straight. That may, indeed, be the highest value of a survey like this.”
Joanna Longworth, chief marketing officer, YouGovSiraj said: “We are confident that our Consumer Confidence Index provides a means through which the attitudes and perceptions of the Middle East consumer can be monitored and improved. We are delighted to join forces with Bayt.com to bring these reports to politicians, business leaders and the general public.”
