By Andy Sambidge
New poll reveals concerns despite growing confidence in UAE about economy and job opportunities
UAE residents are concerned about the rising cost of living in the emirate despite being confident about the economy and job opportunities, a new survey has revealed.
The latest Middle East and North Africa Consumer Confidence Index survey, conducted by Bayt.com and YouGov, showed that 24 percent of respondents consider their personal financial situation to have improved in the last six months.
The poll also showed that 50 percent considered it will get better in the next six months.
Despite this, 81 percent of those polled said they believe that the cost of living will rise in the UAE within the same time period. Half of UAE respondents also said that their savings have decreased in comparison to last year.
In terms of purchases, over a third (37 percent) of UAE respondents said they are planning to invest in a vehicle in the coming year.
Thirty percent said they are planning in investing in property, with apartments (46 percent) being the investment of choice. Over half (56 percent) plan to purchase a new property, while 31 percent plan to buy a pre-owned property, the survey said.
The UAE economy has improved in the last six months, according to 41 percent of respondents, while 55 percent expect things to get better in the next six months.
Present business conditions are considered to be good to very good by 47 percent, with 65 percent expecting things to get better in the year to come.
The survey also showed that nearly half of all respondents believed jobs to be plentiful in the UAE while 53 percent expect an increase in the number of job opportunities in the next six months.
According to two-fifths (43 percent) of respondents, their companies have grown in terms of the number of employees in the last six months while 49 percent expect the number of employees in their company to grow in the next half year.
"On the whole, the outlook for the region is a good one. Things are certainly improving with more and more major projects materialising across the MENA region, such as the upcoming World Cup in Qatar and Expo2020 in Dubai," said Suhail Al-Masri, VP of sales, Bayt.com.
"These projects are generating more job opportunities, which is a boom for the region. They are, however, also driving up costs which is why savings are dwindling and respondents are expecting a higher cost of living in the future. Employers must take this into consideration when hiring new employees.
Silviu Matei, Director, YouGov, added: "An interesting point to note is that despite the fact that most people in the MENA region consider their personal financial situation to have either improved or stayed the same, a large proportion state that their savings have decreased. Despite high levels of confidence in the market, rising prices seem to negatively impact residents' savings."
Data for the survey was collected online from August 5-19, and involved 5,075 respondents aged 18 years and above.For all the latest banking and finance news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
Strangely I never get polled to give my point of view.
Conclusion: "Silviu Matei, Director, YouGov, added: "An interesting point to note is that despite the fact that most people in the MENA region consider their personal financial situation to have either improved or stayed the same, a large proportion state that their savings have decreased. Despite high levels of confidence in the market, rising prices seem to negatively impact residents' savings.""
This conclusion is very politically correct, but we are able to read between the lines!