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- Dubai 04:25 05:43 12:19 15:46 18:50 20:09
Mena residents anticipate rise in the cost of living in their countries in the next six months.
Though the UAE is no different; respondents are mostly positive that their personal financial situation will improve within the same period, according to the Mena Consumer Confidence Index (CCI) Survey, conducted by Bayt.com and YouGov.
Personal economic situation: Regional sentiment
Almost a fifth (19 per cent) of the region’s respondents state that their financial situation has improved compared to 6 months ago, with the majority, 43 per cent, claiming that it has remained unchanged, and 29 per cent claiming it has become worse. Half (52 per cent) state that their savings have decreased in comparison to last year.
Expectations for the future are high though, with half of the survey’s respondents (46 per cent) anticipating their personal financial situation to improve in 6 months. Somewhat contrary to this is that 71 per cent predict that the cost of living in their country of residence will increase in the months to come.
In terms of making major purchases, the majority of respondents in all countries surveyed, with the exception of Oman, do not expect to buy a vehicle in the coming 12 months. For those who will be looking to purchase a vehicle, the majority, 48 per cent, will buy a used one, compared to 45 per cent who will buy new.
When it comes to property, 63 per cent of the region’s respondents – the majority in every country covered by the survey – will not be buying in the next 12 months. For the minority that are considering buying, new properties are more desirable than pre-owned (56 per cent versus 28 per cent), while 50 per cent of respondents want to buy an apartment as opposed to a villa (21 per cent). A fifth (19 per cent) will be looking for commercial property.
Three out of 10 (28 per cent) respondents are planning to purchase a desktop or laptop computer in the next 6 months. Other popular purchases are anticipated to be furniture (20 per cent) and LCD or plasma televisions (18 per cent).
In the UAE
Seven out of 10 (72 per cent) UAE respondents state that their personal financial situation is now either the same as, or worse than it was 6 months ago, with just 22 per cent claiming it has improved.
Only 16 per cent claim that their savings have increased in the last year, compared to 49 per cent whose savings have decreased. The majority (57 per cent) expect their personal financial position to improve in the 6 months to come, though 73 per cent also believe that the cost of living will increase within the same time.
In the next 12 months, 46 per cent of UAE respondents do not plan to buy a vehicle, while the 42 per cent who do intend to purchase will look for a used vehicle (49 per cent, compared to 45 per cent who will buy new).
A quarter (24 per cent) are looking to buy property within the coming year, with 46 per cent of these looking for an apartment, and 57 per cent of respondents preferring new properties.
Consumers are looking to predominantly buy desktop or laptop computers (26 per cent), furniture (21 per cent) and LCD or plasma televisions (18 per cent) in the coming 6 months.
Country’s economic situation: Regional sentiment
The majority of respondents across the region (36 per cent) believe that the economy in their country of residence has receded in the last 6 months, especially so in Syria (84 per cent), Jordan (66 per cent), Lebanon (65 per cent) and Tunisia (63 per cent).
The situation is considered to have improved most in Oman and Qatar (43 per cent each), followed by the UAE (39 per cent).
These three countries also have the strongest predictions for a better economy in the future, while across the board, 42 per cent of regional respondents anticipate things to improve.
Business conditions are, on the whole across the Mena region, considered to be ‘average’ by a majority 41 per cent of respondents, while 32 per cent claim that things are ‘good’ or ‘very good’. With 53 per cent of respondents saying that conditions in Qatar are ‘good’ or ‘very good’, it would appear to be the best place for business at present as per the Bayt.com survey. Expectations are high across the region for conditions to get better in a year’s time.
Employment conditions are considered to be difficult, with 32 per cent of regional respondents stating that ‘there are few jobs available across few industries’, and 26 per cent stating that ‘there are few jobs available across various industries’.
Employment opportunities seem to be the highest in the UAE and Saudi Arabia, followed by Qatar and Oman. In general, respondents anticipate more jobs in the coming 6 months, with the exception of Syria, Jordan and Lebanon, who anticipate a decrease in employment opportunities.
In the UAE
Four in 10 (39 per cent) believe that the UAE’s economy has improved in the last 6 months, while 34 per cent state that it has remained the same. Almost two thirds (62 per cent) anticipate better things to come in the next 6 months. Business conditions in the UAE are believed to be ‘good’ (35 per cent) or ‘very good’ (10 per cent), with 38 per cent stating that they are ‘average’, while seven out of 10 (70 per cent) respondents anticipate them to improve in a year’s time.
In terms of employment opportunities, UAE respondents are somewhat torn; 26 per cent state that ‘there are plenty of jobs available across various industries’, while 24 per cent believe that ‘there are few jobs available across various industries’. Half of all UAE respondents (46 per cent) expect there to be an increase in jobs in the UAE available in the next 6 months, while 26 per cent expect the situation to remain the same.
Job perspective: Regional sentiment
When asked whether there have been any changes in the number of employees at their company in the last 6 months, the majority of respondents (33 per cent) say that there have been no adjustments; 30 per cent say that they now have more colleagues, and 29 per cent say that they have fewer. Just more than a third (36 per cent) expect their company to hire in the coming 6 months, while 35 per cent expect there to be no changes.
The majority of respondents (43 per cent) are satisfied with the career growth opportunities that their company presents them – especially so in Oman (60 per cent) and Qatar (52 per cent). Satisfaction with salary and allowances is low across the region, with 57 per cent of respondents being dissatisfied. Those most happy with their compensation live in Oman (48 per cent satisfied), Qatar (44 per cent) and Kuwait (43 per cent).
However, 44 per cent of respondents are happy with their non-monetary benefits, particularly in Algeria (57 per cent), Oman (52 per cent) and KSA (52 per cent). Levels of job security are also high, with 44 per cent satisfied. Algeria (59 per cent), Oman (56 per cent) and Kuwait (55 per cent) seem to offer the highest level of job security.
In the UAE
Four out of 10 (37 per cent) respondents in the UAE state that their companies have grown, employee-wise, in the last 6 months, while 31 per cent say that there has been a decrease in the number of people working with them. The majority (44 per cent) expect there to be growth in the number of employees in the coming 6 months.
UAE respondents are satisfied with their career growth opportunities (43 per cent), non-monetary benefits (43 per cent) and job security (45 per cent), though they are mostly unhappy with their current compensation, with 39 per cent dissatisfied compared to 36 per cent who are satisfied.
“It’s clear to see which countries are currently perceived by residents to be more favourable to live and work in than others; countries within the GCC seem to be preferable for their current economic situations and the business conditions that comes with such. The Levant seems to be less popular at present, most likely influenced by regional political situations,” said Suhail Masri, VP of Sales, Bayt.com.
“Respondents in the 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,” said Sundip Chahal, CEO, YouGov.
Data for the survey was collected online from July 28-August 15 2013, with 6,585 respondents aged over 18 years, covering the GCC, North Africa, Levant, Western Expatriate and Asian. Countries that participated are UAE, Saudi Arabia, Kuwait, Oman, Qatar, Bahrain, Lebanon, Syria, Jordan, Egypt, Morocco, Algeria and Tunisia.
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