Consumer confidence drops in UAE - survey
by This email address is being protected from spam bots, you need Javascript enabled to view it on Tuesday, 13 January 2009
Consumer confidence in the UAE is lower for the first half of 2009 compared to the previous six months, amid growing fears over job losses in the region.
According to the latest MasterCard Worldwide Index of Consumer Confidence, the UAE recorded the lowest score for employment since 2004.
While confidence is lower, overall results show that UAE consumers are still optimistic about income, the economy and quality of life in the six months ahead.
A total of 3,200 consumers were surveyed during October and November 2008 for the index which measures consumer confidence on prevailing expectation in the market for the next six months.
It is calculated based upon percentage response figures, with zero as the most pessimistic, 100 as most optimistic and 50 as neutral.
In the UAE, the current consumer confidence score of 75.4, is a drop from the previous six months [85.4] and a year ago [78.5].
It is also below the market historical average [83.5].
However, the survey found that consumers remained optimistic especially about income [91.6], the economy [83.2] and quality of life [76.7].
Consumer outlook on employment [57.0] has dropped significantly from 95.8 a period ago and 85.6 a year ago - representing the lowest index for employment in the UAE since the beginning of the index in the first half of 2004.
The Index in the Middle East generally, which currently stands at 72.7 shows that consumers have in fact become a little more optimistic than six months ago [66.4] and slightly less so with the optimism of year ago [73.6].
Consumer confidence in Saudi Arabia [72.4], Qatar [76.2] remained fairly to very optimistic while Kuwait [96.6] hit a new high surpassing all previous records.
READERS' COMMENTS
Posted by paul, dubai, UAE on Tuesday 13 January 2009 at 12:52 UAE time
It is not surprising that consumers in the mid-east are not as pessimistic as one might expect. Media such as newspapers, TV and radio are much more carefully regulated here, and will tend to present a positive optimistic impression of things.
If you want a clearer picture, ask business people rather than average consumers. They have a much better feel since they can see orders, prices and the economic direction first hand in their daily dealings.
If you asked Dubai property owners in mid 2008, I suspect they would all have been rather confident about the future too, for the same reasons I outlined above.
Consumer views mean little if they are based on information and predictions in the media which may turn out to be highly inaccurate (for example 'Dubai immune to credit crunch' which we frequently saw all through the first half of 2008).
Click here to post a comment
MORE FROM ARABIANBUSINESS.COM
TOP IN MIDDLE EAST CULTURE & SOCIETY
TOP MIDDLE EAST BUSINESS STORIES
ALSO IN MIDDLE EAST CULTURE & SOCIETY
LATEST MIDDLE EAST BUSINESS NEWS
- Travel & Hospitality: Dubai plans cost friendly offers to woo tourists - paper
- Politics & Economics: Lubna calls on Filipino firms to tap UAE competitive edge
- Transportation: Emirates bags Gold in Air Cargo excellence survey
- Culture & Society: Visa racket ring busted in Ras Al Khaimah
- Sport: Hamilton and Button 'closest of friends' – Ron Dennis
SHARE PRICE CHECK
RELATED STORIES
Market Turmoil Focus
3 stories- GCC banks facing another tough year - S&P
23 Feb '10 | News - Kuwait loans growth slows to 6.1% in 2009
18 Feb '10 | News - UK engineering firm says owed $14.9m in Dubai
2 Feb '10 | News
Mastercard
- UAE average consumer spent $1,048 online in Q4
9 Mar '10 | News - Credit cards are main source of Arab youth debt
8 Mar '10 | News - UAE consumer optimism sees big rise - survey
20 Jan '10 | News





