Consumer confidence drops in UAE - survey

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NEW RESEARCH: A Mastercard survey has revealed falling consumer confidence in the UAE.

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.

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READERS' COMMENTS

not surprised
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).

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