Dubai Business News — The UAE has one of the highest levels of consumer confidence globally as the country is among the top 10 nations in the world in terms of consumer confidence, according to a latest survey.India topped the index and Saudi Arabia got second position, according to third quarter global online consumer confidence findings from Nielsen — a leading global provider of insights and analytics into what consumers watch and buy. Confidence was highest in India for a seventh straight quarter but India’s reading fell five points from the second quarter and Saudi Arabia was catching up.
Global online consumer confidence fell for the seventh consecutive quarter as confidence in 31 of 56 global markets measured declined, according to the survey findings. “Third quarter was volatile and challenging for global economies and financial markets amid stagnant US unemployment figures and a worsening euro zone debt crisis,” said Dr Venkatesh Bala, chief economist at The Cambridge Group, a part of Nielsen.
The UAE and Saudi Arabia are only countries among top ten from the Middle East and Africa region. The UAE ranked seven globally. The UAE is one of the most optimistic economies globally despite a five-point dip in confidence from three months ago, the UAE index of 105 exceeds the regional average of 96. Pakistan (86) and South Africa (78), posted the lowest confidence scores in the region, declining two and eight points, respectively. Putting spare cash into savings is a top priority throughout the region, with consumers in the UAE the most diligent savers as 54 per cent indicate they plan to save. Paying down debts is also important in the UAE, South Africa and Saudi Arabia.
While concerns about job security and the economy top the issues most distressing to consumers throughout the region, other worries vary. Concerns about political stability in Egypt, rising food prices in Saudi Arabia, crime in South Africa and parent’s/children’s welfare in Pakistan are also fears. Following close behind India, confidence in Saudi Arabia rose 13 points in the third quarter to an index of 120. “In Saudi Arabia, state spending, bolstered by high oil prices and a boost in crude oil output remains a central driver of economic activity,” Nielsen Saudi Arabia managing director Arslan Ashraf. “The surge in Saudi consumer optimism comes as the impacts of the massive budget allocations and increases in public spending announced earlier this year by the government begin to trickle down, reaching the average citizen. The aggressive job nationalization programme announced at the end of the second quarter combined with generous handouts, salary increases, housing loans, and welfare programmes has translated to improved personal finances and promising job prospects for Saudi consumers,” Ashraf added.
In the latest round of the survey, conducted between August 30 and September 16, the economy re-emerged as the top concern among 18 per cent of online consumers around the globe. The economy last topped concerns in the fourth quarter of 2010, before it was replaced by worries over increasing food prices in the first half of this year. Job security follows close behind for 14 per cent of consumers, rising five percentage points from three months ago.
Reports from KhaleejTimes.com.
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