The latest Bayt.com Middle East and North Africa Consumer Confidence Index survey, conducted by Bayt.com, the Middle East’s number one job site, and YouGov, the region’s reputed research and consulting organisation, has revealed that while51% of UAE respondents share a positive sentiment that their personal financial position will improve in the next6 months,82% also expect the cost of living to increase within the same time period.
Personal Economic Situation
Regional SentimentAcross the region, less than a fifth (17%) of those surveyed are of the opinion that their personal financial situation has improved, compared to6 months ago. However, for39% it has remained the same and37% state that things have not been good for them. This has affected the savings of58% who report seeing a decrease in their savings in comparison to last year. About four in ten (39%) are optimistic that in the next6 months things will get better for them, even though78% anticipate the cost of living to increase.
Almost a third (30%) of respondents in the MENA region, plan to buy a vehicle for personal use in the next12 months, with49% preferring to buy a used vehicle over44% who will seek a new one. Nearly a fifth (19%) is planning to invest in property within the same period, with new apartments being the most popular consideration for purchase.
The top three consumer goods purchase that respondents plan to make include desktop or laptop computers (26%), furniture (18%), and LCD/plasma televisions (16%).
In the UAE
In the UAE,21% report that their financial position has improved in the last6 months, with a further four in ten (42%) claiming there has been no change and28% having seen a decline. More than half (53%) claim that their savings have decreased compared to12 months ago. The outlook is positive however with51% anticipating a positive change to their financial situation within the coming6 months, despite cost of living expected to increase in the same period among eight in ten (82%) living in the UAE.
Among the43% who are considering buying a vehicle for personal use in the next12 months, about half (50%) would prefer a used vehicle. A quarter (26%) plan to invest in property within the next12 months. Amongst property investors,55% will look for new construction and45% will opt for apartments (45%).
Respondents in the UAE are interested in buying desktop or laptop computers (28%), furniture (22%) and LCD or plasma televisions (16%) in the next6 months.
Country’s Economic Situation
Regional Sentiment
There is a significant split within the regions of the MENA when it comes to respondents’ evaluation of the economy in their country of residence. In the GCC, respondents are generally positive about the economy, believing that it has mostly improved in the last6 months. However, countries in the Levant and North Africa are less positive, with those in the Levant in particular, believing that their country’s economic situation has dramatically receded when compared to the economy of6 months ago. The Levant countries are also less positive about the future of their economy, with the majority of respondents holding the belief that things will get worse.
Across the region, overall50% of those surveyed are optimistic about the future business conditions in their respective countries. This sentiment is much stronger amongst the GCC residents (average of62%) and weakest across the Levant region (average of27%). The state of business conditions reflects the regional opinion of job availability; respondents in GCC countries believe that there are plenty of job opportunities, whereas those in the Levant and North Africa believe the opposite to be true. Respondents in the GCC are also more positive about an increase in the number of jobs in the next6 months.
In the UAEMore than half of UAE respondents (52%) state that the country’s economy has improved in the last6 months; a trend that68% believe will continue in the6 months to come. Business conditions are considered to be good to very good by50% of respondents, with three quarters (72%) claiming that things will become even better in a year’s time.
There are plenty of jobs available in the UAE according to54% of respondents, with even more openings to appear in the coming6 months (as stated by60%).
Current Job Perspective
Regional SentimentThere is a near even three-way split across the region in regards to the change in the number of employees within respondents’ companies in the last6 months;30% state there has been an increase in employees,30% state there has been a decrease, and34% state there has been no change. In the next6 months, slightly more than one-third (35%) anticipate their organisation to grow, while a similar number (35%) expect the workforce to remain the same.
Respondents are also relatively evenly split in terms of their level of satisfaction with respect to career growth opportunities; with38% satisfied and41% dissatisfied with the opportunities available to them. Compensation is considered to be unsatisfactory by53% of the region’s respondents. However, when it comes to non-monetary benefits received,42% are satisfied and41% claim being dissatisfied. The opinion about job security is also split evenly; with40% being satisfied with their level of job security and another39% differing in their opinion.
In the UAE
With45% of respondents stating that there are more employees working with them now than half a year ago, it seems as if companies in the UAE have been hiring in the past6 months. This trend will continue as half of UAE respondents expect to have more colleagues in the coming6 months.
UAE respondents are content with the career growth opportunities (45%), non-monetary benefits (46%), and level of job security (50%) in their current position, though at least four in ten (43%) report being unhappy with their salary and allowances.
“Despite a regional consensus on a proportional rise in the cost of living, positive sentiment across the region, particularly in the GCC countries and more recently, among North African states, can be seen,” said Suhail Al-Masri, VP of Sales, Bayt.com. “An increased cost of living may negatively impact consumers’ ability to live comfortably and save, affecting the overall morale and job satisfaction of the MENA employee. In fact, we have recorded a particular dissatisfaction with salary and allowances that should be addressed by employers across the region in order to avoid a situation in which talent could be migrating elsewhere. We believe that this is absolutely doable, especially when you know that the majority of MENA respondents expect business conditions to get better in a year’s time.”
“At Bayt.com, we conduct our Middle East and North Africa Consumer Confidence Index surveys in order to understand and chart changing confidence levels as well as challenges and pressures as the region goes through different economic cycles. Our research aims to provide employers and jobseekers alike with up-to-date information that is both relevant and reliable to use as a reference for better decision making,” added Al-Masri.
Suhail Shaikh, Director, YouGov stated: “Although some countries in the region such as those in the GCC are more likely to see further economic buoyancy, the rising cost of living will be a major hurdle for most in the MENA region. People in the Levant and North Africa are more likely to feel the financial burden as their economies battle against the socio-political uncertainties.”
Data for the Bayt.com Middle East and North Africa Consumer Confidence Index survey - March2014 was collected online from February9-24,2014, with6,728 respondents aged18 years and above. Respondents were from the UAE, KSA, Kuwait, Oman, Qatar, Bahrain, Lebanon, Syria, Jordan, Egypt, Morocco, Algeria, and Tunisia.