Regional consumer confidence on the rise, says Bayt.com

The survey, conducted in conjunction with market research leader YouGovSiraj, revealed that consumers were generally content with their current financial situations, with many expressing increased confidence about the region's future prospects.

The online survey questioned more than 8,800 people, male and female, across the GCC, Levant and North Africa. The results will prove to be an invaluable source to business leaders, economists and the general public.

Questions explored respondents' attitudes towards their financial and job situations, their likelihood to purchase and invest, and the region's employment market. The survey reveals a broad range of attitudes according to country of residence, nationality, type of organisation and income bracket.

The survey showed levels of consumer confidence to be highest in Qatar, Saudi Arabia and the UAE. Overall, 40 per cent of respondents claimed their financial position had improved over the past year.

Nearly a third felt their country's economy had improved within the previous three months. In Saudi Arabia, 42 per cent saw an improvement, with the UAE and Qatar following closely behind at 40 per cent.

"In terms of this region's economic prospects, there can be few gauges as vital as consumer confidence," said Rabea Ataya, CEO, Bayt.com.

He added:

"If consumers are upbeat about the economy, and their own financial prospects and situation, they will be more inclined to spend money, which in turn drives growth. The trends we reveal in this survey could help forecast the region's economic performance and are potentially of great value to regional decision-makers."

On the whole, Ataya said, the survey's findings suggest a positive outlook among consumers and an optimistic view of the future. In all, 59 per cent of respondents felt their personal financial situation was set to improve. This figure was 56 per cent in Algeria and 57 per cent in Egypt but rose to 68 per cent in Kuwait.

In the UAE and Saudi Arabia, 56 per cent and 53 per cent, respectively, agreed that current business conditions were good. When asked whether they expected conditions to improve in the year ahead, 65 per cent in KSA and 66 per cent in the UAE said yes.

The survey did contain some unexpected findings. Westerners displayed the lowest levels of confidence with regards to their current financial situation, future financial prospects and satisfaction with career growth. Only 36 per cent of Westerners expressed optimism about their host country's economic future, compared with 67 per cent of GCC nationals.

On almost all counts with the exception of career and compensation satisfaction, Asians were the most bullish. In general, people in the US$5,000-6,000 wage bracket felt more positive about their job security than those earning US$6,000 and higher.

Some findings were more in line with conventional wisdom. Across the board, respondents said wages weren't rising as fast as the cost of living. In Qatar, 51 per cent said salaries had not kept pace, while in the UAE this figure was 62 per cent. When asked what impact the cost of real estate would have on their business in the short-term, the results were fairly pessimistic with 37 per cent of Saudis saying it would have a negative impact and 43 per cent of UAE residents agreeing.

Despite cost of living and inflation concerns, interest in consumer purchases was relatively high, with 34 per cent saying they are planning to buy a vehicle in the next year, and 60 per cent of these opting for a new one.

Across the region, 39 per cent said they wanted to buy a new laptop or desktop computer, 25 per cent favoured furniture, while 21 per cent expressed interest in a new digital camera.

Commenting on the Bayt.com survey, Joanna Longworth, Chief Marketing Officer, YouGovSiraj said, "We are confident that our Consumer Confidence Index portrays an accurate and compelling picture of current trends, and equally confident that it will become a valuable resource for economists, business leaders, recruitment agencies and the general public."

The consumer confidence index will be conducted on a quarterly basis and the results can be found online at Bayt.com.