Customer confidence dips in UAE
The survey revealed that 62 percent feel that the current salary is not in line with the cost of living, with 33 percent stating buying consumer durables is not practical in the present situation.
According to the quarterly MENA Consumer Confidence Index survey by Bayt.com, prospects for the future appear quite positive from the UAE survey takers, with 54 percent believing that their financial position will improve in a year's time, while a good 16 percent claim it will stay the same and only eight percent believe it will get worse. In parallel, 46 percent of UAE respondents expect that the UAE's economy will get better within the same time frame. However, this claim won't essentially mean an increase in the number of jobs. Only 35 percent of UAE respondents think there will be more jobs available in a year's time, while 51 percent feel there will be either no change or fewer jobs.
Similarly, 26 percent seem pessimistic towards the possibility of increase in their organisation's employee-count in the coming quarter, while only 21 percent felt the opposite and believe that there will be a positive growth, and a good 36 percent share a neutral outlook on the same. Likewise, companies addressing staffing requirements in the coming three months show that 38 percent of UAE survey takers are neutral, with 18 percent who seem optimistic and less than one-third (28 percent) appear quite pessimistic.
"While a certain number of countries witnessed a drop in their Consumer Confidence Index since last quarter, the region's overall sentiment towards the future remains positive. It will be interesting to see if the region can slowly, but surely reach a long-term period of true stability in the near future," explained Amer Zureikat, VP Sales at Bayt.com.
With regards the respondents' present situation in the UAE, 39 percent have experienced no change, and the financial situation is worse for 29 percent of survey-takers, while only 26 percent have had an improved financial position in comparison to the previous year. The survey's respondents also remain doubtful on the current attitude towards purchasing of consumer durable goods, with 33 percent of UAE respondents saying 'now is a bad time to buy’.
Only 17 percent believe that this is a good time to buy, while a whopping 42 percent stay neutral. Additionally, with 66 percent of UAE residents opting to shy away from investments in property and 54 percent from purchasing a car in the next 12 months, only a mere 18 percent will look into investing in properties and 33 percent in a car. From those who are willing to do such investments in a year's time, 73 percent said they will be buying a 'new' property and 52 percent a 'new' car, while 42 percent said they will opt for a used one.
"We conduct our quarterly Middle East Consumer Confidence Index Survey in order to chart how consumer confidence levels are changing as the region goes through different economic cycles, and faces the challenges and pressures wrought by economic trends and events across the globe.
This seeks to provide all stakeholders, from regional businesses to local organisations and HR professionals with up-to-date information that is both relevant and reliable as a snapshot of current market trends," added Zureikat.
- State of the Arab World Economy report 2016: diversify, tax, slash subsidies
- Arab investors won't dump the Trump despite anti-Muslim remarks
- UAE economy minister projects high growth despite oil prices
- UAE can set the pace for innovation in the Middle East: IBM vice president
- Business community welcomes UAE's deficit-free budget
- Nielsen: UAE Consumer Confidence Remains in World’s Top 10 Despite Marginal Dip
- GCC Investor Confidence remains positive at 113.1 despite dip resulting from wider global challenges
- GCC Investor Confidence Index dips 2.4 points in January
- SHUAA Capital GCC Investor Confidence Index dips slightly but still positive at 107.4