Mena residents ‘optimistic’ about financial future
Study reveals consumer confidence still high despite predicted cost of living hikes.
September 16, 2013 3:40 by kippreport
According to the latest Consumer Confidence Index (CCI) survey* by Bayt.com and research firm YouGov, 46 per cent of residents across the Mena region expect their personal financial situation to improve in the next six months.
However, somewhat contrary to that, 71 per cent predict an increase in the cost of living.
According to the report, released yesterday, 19 per cent of respondents say that their financial situation has improved, when compared with six months ago. However, 43 per cent claim that their situation has remained unchanged, while 29 per cent say it has become worse.
When it comes to buying property, 63 per cent – the majority in every country covered by the survey – do not plan to buy in the next 12 months.
Other anticipated purchases include: furniture (20 per cent) and LCD or plasma televisions (18 per cent). Additionally, the majority of respondents in all of the countries surveyed – with the exception of Oman – do not expect to buy a vehicle in the next year. Three out of ten respondents are planning to purchase a desktop or laptop computer in the next six months.
In the UAE
The survey also reveals that seven out of ten (72 per cent) UAE respondents state that their personal financial situation is now either the same as, or worse than, it was six months ago, with 22 per cent claiming that it has improved.
Fifty seven per cent expect their financial position to improve in the six months to come. However, 73 per cent of believe that the cost of living will increase during the same period.
Four in ten (39 per cent) residents believe that the UAE‘s economy has improved in the last six months, while 34 per cent state that it has remained the same and 62 per cent anticipate better things to come.
Nearly half of all respondents (46 per cent) expect an increase in job vacancies in the UAE in the coming months, while 26 per cent expect the situation to remain the same.
Overall, most respondents (43 per cent) in the UAE are satisfied with career growth opportunities, non-monetary benefits (43 per cent) and job security (45 per cent), despite 39 per cent being dissatisfied with their current compensation – compared to 36 per cent who are satisfied.
“Respondents in 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 people anticipating an increase in living costs and having experienced a decrease in savings, it may be time to take an evaluative look at the stability of personal financial situations,” says Sundip Chahal, CEO of YouGov.
The survey’s findings support the conclusion of the MasterCard Index of Consumer Confidence, which was released last month and concluded that residents in the UAE were ‘extremely optimistic’ about the future, with consumer confidence at an all-time high.
*The full report, which can be viewed here, was collected online from July 28 to August 15 2013, with 6,858 respondents over the age of 18.