masterindex of consumer confidence continues to show strong optimism in the uae
Consumer Sentiment on Employment At All Time High
Results of the MasterIndex of Consumer Confidence survey for the second half of 2007 reveal that consumer confidence in the United Arab Emirates (UAE) continues to grow at a steady pace and remains strongly positive.
The current UAE MasterIndex score at 88.8 out of a possible score of 100 is an improvement on the 80.0 score received six months ago. The latest survey measures perception of consumer confidence in the six months ahead. Indications are that consumer sentiment is increasingly more positive and optimistic. In the Middle East and Levant (MEL), the UAE ranks fourth in overall consumer confidence for the second half of 2007.
Commissioned by MasterCard Worldwide and conducted bi-annually in selected markets in South Asia, Middle East and Africa (SAMEA), the survey analyses consumers’ perceptions of economic conditions over the six months ahead. The MasterIndex has a range of 0 to 100 with 50 as the mid-point. A score above 50 indicates that consumers are optimistic about the economic climate, while a score below 50 signals that consumers are pessimistic about the economic situation.
The countries surveyed are Egypt, Kuwait, Lebanon, Saudi Arabia, UAE, South Africa and India. The scores are based on respondents’ answers to questions relating to five key economic barometers: Employment, Economy, Regular Income, Stock Market and Quality of Life. Bi-annual MasterIndex surveys have been held across SAMEA for the past three years and across Asia Pacific for the last 15 years.
In the latest survey, UAE consumer sentiment on Employment rose to 95.2, from 77.4, in the second half of 2006, and 79.0 in the first half of 2007. Employment dipped considerably from its high of 90.5 in the second half 2005 but is now surpassing this mark considerably.
Perception on Quality of Life registers a slight decrease from 80.6 six months ago to 79.1 in the current survey. All the other consumer sentiments measured improved considerably. Sentiment on Economy improves from 85.7 to 96.0 and is close to the record level from 2H2005 which registered a high of 97.9. Regular Income went from 78.4 to 92.2, climbing again after a sharp decrease in the second half of 2006 (77.1 vs. 91.3 in 1H2006). The Stock Market variable moves from 76.5 to 81.5, also approaching the level of confidence registered in the second half of 2005 (88.2). The mark dropped in the first half of 2006 to 74.7.
On a market basis, Egypt (94.3 vs. 78.2 six months ago) tops the list of Middle East countries with the highest consumer confidence and registers the biggest increase as well. Saudi Arabia comes second with a MasterIndex score of 92.0, however registering a decrease from 97.3 in the first half of 2007. These are followed by Kuwait (91.6 vs. 94.5 six months ago), the UAE (88.8 vs. 80.0), South Africa (80.7 vs. 86.5 six months ago), India (63.6 vs. 65.1 six months ago) and Lebanon with the sharpest decrease from 67.6 in the first half of 2007 to 38.6 in the current survey.
Overall confidence across the Middle East & Levant (MEL) stays at the same level of confidence with 83.6 as compared to 83.9 in the last survey. Since the MasterIndex initiative was introduced in 2004, overall consumer confidence in MEL has increased steadily from the first average score of 66.1 and currently has an historical average of 76.7
Survey results for the larger South Asia, Middle East and Africa (SAMEA) region showed a trend of improvement until this latest survey when the result further slipped from 82.2 in the second half of 2006 to 80.3 six months ago to now 79.3. Overall SAMEA has a historical average of 75.6.
