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Consumer Confidence In The UAE Continues To Rise Since Last Quarter, Latest Bayt.Com And Yougov Siraj Survey Reveals

Published Apr 14, 2011

Consumer confidence in the UAE remains to be trending upwards, following last quarter’s increase, according to the latest Consumer Confidence Index (CCI). The Consumer Confidence Index, a quarterly survey conducted by the Middle East’s number one job site Bayt.com in conjunction with research specialists YouGov Siraj, found that consumer confidence in the UAE increased by 5.8 points since last December.

Meanwhile, Qatar recorded the largest drop of 5 index points. KSA and Lebanon recorded the largest increases, moving up the index by 10.7 and 10.1 points respectively. In Morocco it dropped by 3.6 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 the cost of living.

As part of the CCI, respondents are asked questions about their personal financial circumstances and how they compare to the same period last year. Overall, 35% of the region’s respondents say their financial position is the same as last year and a quarter, 25%, say it has gotten better. In the UAE, 28% say they are better off than last year, 35% say they are in the same position and 28% say they are in a worse position than last year.

Among the countries surveyed, 38% of respondents in Oman say they are doing better than last year, the highest percentage recorded in the region, whereas in Jordan only 19% felt their financial position is better than last year, the lowest percentage recorded in the region.

“The specific countries included in this CCI wave seem to be relatively stable as we are seeing them display similar figures each quarter indicating the after-effects of the recent global economic crisis may be calming down somewhat, resulting in a period of recovery and growth. It will be exciting to see if this sentiment can be maintained till the next quarter and beyond, and whether the region can reach a long-term period of true stability,” commented Amer Zureikat, VP Sales at Bayt.com

In addition to financial position, consumer confidence is assessed by asking the respondents about their level of optimism towards the future, which forms the Consumer Expectations Index (CEI). The countries varied widely in terms of their consumer expectations.

UAE recorded an increase of 5.7 points since the last quarter with Morocco reporting a slight decrease of 0.1 points.

On the whole, respondents are expecting to be in a better financial position next year. Overall, 48% of respondents believe that their personal financial position will be better next year. By contrast, just 6% of the region’s respondents believe that their financial position will become worse. In the UAE, 53% of respondents believe that their personal finances will be better a year from now, compared to just 5% that believe they will become worse. Most optimistic that their personal financial position will be better in a year’s time are respondents in Oman and KSA with 56% confirming this statement.

Respondents also remain largely optimistic that their country’s economy will be better in a year’s time. Overall, 51% say that their country’s economy will be better, 17% say it will remain the same, and 12% say it will become worse. Respondents in Oman are the most positive about the expected improvements in their country’s economy, with 67% stating things will be better. Respondents in Lebanon are most pessimistic about their country’s economy a year from now; 32% say that it will become worse. In the UAE, 54% of respondents believe that their country’s economy will be better in a year’s time, compared to just 11% that believe it will be worse.

Respondents were also asked what they feel their propensity to consume is, as part of the Propensity to Consume Index (PCI). UAE saw a relatively small drop of 3.7 points; the highest drop in the region was recorded by Qatar at 22.2 points. At the other end of the scale, Kuwait recorded the largest rise, moving up the index by 1.9 points.

Asked whether they would invest in property, the respondents largely agree that they will not. The trend continues from the previous quarter with a majority of respondents (62%) stating they are not interested in making any investment in property. Within the UAE, 66% say they will not be buying any property. Of those wishing to purchase a property in the UAE, 65% say they are likely to opt for a new property.

“Gauging consumer opinion is a powerful tool for revealing the current attitudes and sentiments about the business and economic conditions in a specific country and to see how these change overtime,” commented Sundip Chahal, Chief Operating Officer of YouGov Siraj.

Another contributor to the CCI is the Employee Confidence Index (ECI), which measures the attitudes of respondents to the local job market, in terms of their satisfaction towards the availability of jobs and their satisfaction with their salary.

The UAE saw a rise of 2.7 index points in line with last quarter’s rise. Showing the biggest increase is once again Bahrain, which moved up the index by 12.6 points.

When asked whether they believe more jobs will be available in a year’s time, respondents are roughly divided: 38% say more will be available, 24% say the job situation will remain the same and 19% say the availability of jobs will be worse. In the UAE, 40% believe the availability of jobs will get better while 20% of respondents believe the availability of jobs will become worse.

In terms of salaries and whether they have kept pace with the cost of living, as in the previous wave, the majority feel that they have not kept pace with the cost of living, with 59% agreeing that there is a disparity, while just 16% agree they have increased inline with the cost of living, and 5% say they have increased more than the cost of living.

“We conduct our quarterly Middle East Consumer Confidence Index Survey in order to chart how consumer confidence levels are changing as the region goes through different economic cycles, and faces the challenges and pressures wrought by economic trends and events across the globe. This seeks to provide all stakeholders, from regional businesses to local organisations and HR professionals with up-to-date information that is both relevant and reliable as a snapshot of current market trends, concluded Zureikat.

Data for the March 2011 Consumer Confidence Index Survey was collected online between 14 March and 3 April 2011 with 8,079 respondents from the UAE, KSA, Qatar, Oman, Kuwait, Bahrain, Syria, Jordan, Lebanon, Egypt, Morocco, Tunisia, Algeria and Pakistan. Males and females aged over 18 years old, of all nationalities, were included in the survey.



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