UAE consumer confidence drops sharply in H1

RETAIL THERAPY: Consumer confidence in the UAE has fallen sharply since the second half of 2008, says a new report. (Getty Images)

Consumer confidence in the UAE has fallen sharply since the second half of 2008 but the country has one of the most optimistic populations, according to a new report published on Wednesday.

The UAE is placed among the top 10 countries in the latest Nielsen Consumer Confidence Index which tracked confidence levels, major concerns and spending habits among 26,202 internet users in 52 countries.

The ranking was despite the fact that consumer confidence in the UAE had taken a steep fall by 21 points compared to second half of 2008.

Piyush Mathur, regional managing director, Middle East, North Africa and Pakistan, The Nielsen Company, said: "Global uncertainty in the economic environment coupled with jobs cuts, have brought down consumer confidence levels worldwide.

"Consumers are not sure what to expect next. Despite the fall in confidence levels, UAE ranks in the top ten most optimistic countries and relatively speaking, it is much better off than most others."

Among the MENA countries included in the study, a new entrant was Saudi Arabia whose confidence levels stood at 79, compared to the UAE's 89.

The consumer confidence Index for Egypt was 74, a fall of one percent from the last survey.

All but one of the countries surveyed in the last quarter have seen confidence falling to record lows, with Taiwan the only country to buck the global trend.

Consumer confidence plummeted by 29 Index points in Russia, marking the biggest fall in consumer confidence tracked by Nielsen globally.

Indonesia topped the index with 104 points, followed by Denmark (102 points) and India (99 points).

The world's most pessimistic nations were Korea (31 points), followed by Portugal and Latvia at 48.

Job security was cited as the leading concern among internet consumers in 33 of 52 countries surveyed with 36 percent of UAE respondents making it their number one worry, compared to 23 percent of Saudis.

"Though job security is the biggest concern for the UAE consumers and it has tripled in the last six months, it is still among the top ten countries where the perception of local job prospects is better compared to others," added Mathur.

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