MasterCard survey: Younger consumers in Saudi Arabia plan to save more in the next six months

A majority of Saudi consumers below 30 plan (87%) to save either the same or more in the next six months, compared to those between 31and 45 years (85%), 46 and 55 years (73%) and those aged 56 years and above (78%).

The MasterCard survey provides valuable insights into consumers' savings behavior for the 6 months ahead. The survey is based on a survey of 2,600 consumers in 6 markets, conducted between 23 March and 18 April 2009. The Index and its accompanying reports do not represent MasterCard financial performance.

In the Middle East and Levant (40%), as well as, KSA (58%), a majority of consumers are looking to save the same in the coming six months. Other Middle East and Levant markets that are planning to save the same include Kuwait (50%) and Lebanon (45%).

In two out of the six Middle East and Levant markets, a majority of consumers are planning to save more in the next 6 months. Topping the list of savers is the United Arab Emirates (UAE), with 47% of consumers intending to save more over the next six months, followed by Qatar (44%). At the other end of the spectrum, Egypt has the highest percentage of consumers planning to save less at 63%.

Uncertainty over the economy and hence the need to be prepared for unforeseen emergency expenditures (73%) is the top reason cited by consumers in the Middle East and Levant who are planning to maintain or increase their level of saving in the next six months. Consumers in KSA (62%) also plan to maintain or increase their level of saving in the next six months for the same reason.

"It is interesting that in KSA, buying or upgrading/renovating home or property, purchase of cars and motorcycles, and, purchase of consumer electronics emerged as some of the most important saving priorities for consumers,"

said Raghu Malhotra, area business head, Middle East (Gulf countries), MasterCard Worldwide.

Mr. Malhotra continued, "MasterCard is pleased to be consistently conducting these surveys as they underscore our commitment to be a credible source of knowledge for our customers, associates, and merchants as they develop their strategies for business success."

Apart from having an emergency stash, the other main reasons for consumers in KSA to save include buying property (64%), purchasing of cars and motorcycles (60%), and purchasing consumer electronics (55%).

The main reason for consumers in KSA saving less is high inflation (78%).

Market Highlights (Middle East and Levant):

Saudi Arabia

- Male consumers (31%) in Saudi Arabia are planning to save more compared to their female counterparts (18%) in the next six months.
- Younger consumers between the ages of 18 to 30 years old (29%) are planning to save more in the next six months compared to their older counterparts - 31 to 45 years (24%), 46 to 55 years (20%) and 56 years and above (20%).
- The economic uncertainty has caused 62% of Saudi Arabian consumers to either maintain or increase their level of savings in preparation for unforeseen emergency expenditures. Among the different age groups, those in the 46-55 age bracket (68%) are most concerned about saving for a rainy day.
- Saudi Arabian consumers are also saving for buying property (64%), purchase of car/motorcycle (60%) and consumer electronics (55%).
- The majority of Saudi Arabian consumers (21%) plan to save between 11-20% of their income in the next six months.

Egypt

- Male consumers (13%) in Egypt are planning to save more compared to their female counterparts (5%) in the next six months.
- Younger consumers between the ages of 18 to 30 years old (13%) are planning to save more in the next six months compared to their older counterparts - 31 to 45 years (5%), 46 to 55 years (11%) and 56 years and above (5%).
- The economic uncertainty has caused 75% of Egyptian consumers to either maintain or increase their level of savings in preparation for unforeseen emergency expenditures. Among the different age groups, those in the 46-55 age bracket (83%) are most concerned about saving for a rainy day.
- Egyptian consumers are also saving for buying property (44%), consumer electronics (41%) and purchase of car/motorcycle (33%).
- The majority of Egyptian consumers (48%) plan to save 0% of their income in the next six months.

Kuwait

- Male consumers (29%) in Kuwait are planning to save more compared to their female counterparts (26%) in the next six months.
- Consumers between the ages of 31 to 45 years old (30%) are planning to save more in the next six months compared to their older counterparts - 18 to 30 years (26%), 46 to 55 years (28%) and 56 years and above (26%).
- The economic uncertainty has caused 68% of the consumers in Kuwait to either maintain or increase their level of savings in preparation for unforeseen emergency expenditures. Among the different age groups, those in the 46-55 age bracket (71%) are most concerned about saving for a rainy day.
- Consumers in Kuwait are also saving for international personal air travel (72%), buying property (49%) and consumer electronics (48%).
- The majority of consumers in Kuwait (24%) plan to save between 21-30% of their income in the next six months.

Lebanon

- Male consumers (27%) in Lebanon are planning to save more compared to their female counterparts (21%) in the next six months.
- Younger consumers between the ages of 18 to 30 years old (29%) are planning to save more in the next six months compared to their older counterparts - 31 to 45 years (24%), 46 to 55 years (15%) and 56 years and above (15%).
- The economic uncertainty has caused 66% of Lebanese consumers to either maintain or increase their level of savings in preparation for unforeseen emergency expenditures. Among the different age groups, those in the 31-45 age bracket (71%) are most concerned about saving for a rainy day.
- Lebanese consumers are also saving for retirement (44%), purchase of car/motorcycle (42%) and buying property (37%).
- The majority of Lebanese consumers (29%) plan to save between 1-10% of their income in the next six months.

Qatar

- Male consumers (50%) in Qatar are planning to save more compared to their female counterparts (33%) in the next six months.
- Younger consumers between the ages of 18 to 30 years old (51%) are planning to save more in the next six months compared to their older counterparts - 31 to 45 years (40%), 46 to 55 years (36%) and 56 years and above (44%).
- The economic uncertainty has caused 83% of consumers in Qatar to either maintain or increase their level of savings in preparation for unforeseen emergency expenditures. Among the different age groups, those in the 46-55 age bracket (90%) are most concerned about saving for a rainy day.
- Consumers in Qatar are also saving for investments (62%), buying property (55%) and purchase of car/motorcycle (27%).
- The majority of consumers in Qatar (27%) plan to save between 1-10% of their income in the next six months.

United Arab Emirates

- Female consumers (47%) in United Arab Emirates are planning to save more compared to their male counterparts (46%) in the next six months.
- Younger consumers between the ages of 18 to 30 years old (53%) are planning to save more in the next six months compared to their older counterparts - 31 to 45 years (45%), 46 to 55 years (37%) and 56 years and above (43%).
- The economic uncertainty has caused 84% of consumers in UAE to either maintain or increase their level of savings in preparation for unforeseen emergency expenditures. Among the different age groups, those in the 46-55 age bracket (87%) are most concerned about saving for a rainy day.
- Consumers in UAE are also saving for investments (51%), retirement (37%) and international personal air travel (37%).
- The majority of consumers in UAE (24%) plan to save between 11-20% of their income in the next six months.

MasterCard and its Suite of Research Properties
Based on the MasterCard Survey on Consumer Purchasing Priorities, the MasterCard Worldwide Index of Consumer Purchasing Resilience is part of the MasterCard Worldwide Index suite of research products in Asia/Pacific, Middle East and Africa. The others include the MasterCard Worldwide Index of Consumer Confidence and MasterCard Worldwide Index of Women's Advancement.

Besides these, MasterCard also regularly releases its Insights reports; the series is part its ongoing research and analysis of business dynamics, financial policies and regulatory activities in the Asia/Pacific, Middle East and Africa region. Over 60 Insights reports have been produced since 2004. MasterCard has also released a series of four books on Asian consumer insights, authored by its Asia/Pacific economist, Dr. Yuwa Hedrick-Wong and published by John Wiley & Sons.

The MasterCard Indexes and Insights reports are available at www.masterintelligence.com