The overall score of consumer confidence in Saudi Arabia rose to 83.2 for next six months in 2010 as compared with 67.1 during the same period last year, according to the latest MasterCard Worldwide Index of Consumer Confidence Survey released at a press conference in Riyadh, Sunday. Consumer Confidence in Saudi Arabia has increased significantly and consumers appear highly optimistic about the future, Raghu Malhotra, Area Business Head, MasterCard Worldwide for Middle East and Gulf Countries, said while giving a detailed presentation on Consumer Market Outlook for Saudi Arabia and Middle East at a press conference in Riyadh, Sunday. Malhotra said the positive consumer sentiment was reflected by the five economic factors that make up the overall Index score including Regular Income (92.3 as compared with. 72.2 in second half of 2009), Quality of Life (90.1 from 76.2 in second half of 2009), Economy (85.7 from 72.9), Employment (85.0 from 73.5) and Stock Market (63.0 from 40.9). Consumers in Saudi Arabia said their top spending priorities would be on dining and entertainment (54 percent), fashion and accessories (47 percent) and consumer electronics (43 percent) during the next six months, he said. The survey on Consumer Purchasing Priorities Revealed that 64 percentof consumers in Saudi Arabia plan to maintain the same level of discretionary/recreation spending as the last six months, he said. “The overall Index score of 83.2 shows that consumers in Saudi Arabia are more optimistic about the next six months concerning regular income, employment, Stock Market, the economy and quality of life compared to six months ago which stood at 67.1, said Malhotra. Consumer confidence across the Middle East and Levant is optimistic at 74.5. The current Index is higher than the score (49.9) in second half of 2009 and a year ago (72.7), he said. The Index score is calculated with zero as the most pessimistic, 100 as most optimistic and 50 as neutral. The latest survey was conducted from October 1 to November 9, 2009 and involved 2,400 consumers from six markets in the Middle East and Levant that include Saudi Arabia, Egypt, Kuwait, Lebanon, Qatar, and the UAE. The MasterCard Worldwide Survey on Consumer Purchasing Priorities, also released twice a year, provides valuable insights into consumers' savings and expenditure behavior and their discretionary spending priorities for the six months ahead. The survey is now in its second year in the Middle East and Levant. “Regarding purchasing priorities, it is interesting that in Saudi Arabia dining and entertainment, fashion and accessories, and consumer electronics, emerged among the top spending categories for consumers,” he said. Survey on consumer purchasing priorities revealed that currently 38 percent of the consumers in Saudi Arabia are spending 61 to 80 percent of their total annual income on household expenses. While across the Middle East and Levant it accounts for 58 percent of the consumers plan to maintain the same level of discretionary/recreation spending as in the last six months. In Saudi Arabia itself, 64 percent of the consumers plan to do the same. Across the Middle East and Levant, the top spending priorities are dining and entertainment (52 percent), fashion and accessories (47 percent and buying or renovating home or property (38 percent) in the next six months ahead. About 76 percent of the consumers intend to save for precautionary reasons as compared with 70 percent across the Middle East and Levant, he said. In addition, 35 percent of the consumers in Saudi Arabia are planning to save between 11 and 20 percent of their total income in the next six months. In the Middle East and Levant on the aggregate level, all economic factors have increased compared to a period ago. Consumer confidence in the UAE [86.1] increased significantly compared to a period ago [29.6] and leapt up in confidence with the largest Index score increase of the Middle East and Levant markets. Consumer confidence in Qatar [89.2] and Saudi Arabia [83.2] further increased in optimism compared to a period ago. In Kuwait, consumer confidence has moved from neutral [49.5] in second half of 2009 to optimistic [70.9]. Released twice a year for the past six years, the Index is based on a survey which measures consumer confidence on prevailing expectations in the market for the next six months based on five economic indicators such as economy, employment, Stock Market, regular income and quality of life. The survey results provide compelling consumer insights, especially as customers, associates and merchants look to execute their strategies for business success in 2010, said Malhotra. Data collection was via internet surveys, personal, telephone and Computer Aided Telephone interviews, with the questionnaire translated to the local language wherever appropriate and necessary. People targeted for the survey included bank account holders and those that have payment cards.
