While the UAE’s economy and job opportunities are expected to grow in the coming six months, residents are still concerned about the rising cost of living, a report said.

About 24 per cent of respondents in the UAE consider their personal financial situation to have improved in the last six months, added the latest Bayt.com Mena Consumer Confidence Index survey, conducted by Bayt.com, the Middle East’s number one job site, and leading market research agency, YouGov.

While 45 per cent stated that their personal financial situation remained the same, 50 per cent expect it will get better in the next six months, the study found.

Despite this, 81 per cent believe that the cost of living will rise in the UAE within the same time period. Half of UAE respondents (50 per cent) state that their savings have decreased in comparison to last year.

In terms of purchases, over a third (37 per cent) of UAE respondents are planning to invest in a vehicle in the coming year, with 46 per cent planning to purchase a new vehicle for personal use – however, 45 per cent are planning to buy second-hand.

A sizeable 30 per cent are planning in investing in property, with apartments (46 per cent) being the investment of choice. Over half (56 per cent) plan to purchase a new property, while 31 per cent plan to buy a pre-owned property. In terms of smaller purchases, UAE respondents plan to buy desktop or laptop computers (26 per cent), furniture (22 per cent), and LCD or plasma televisions (16 per cent) in the next 6 months, the report said.

Economic situation

The UAE economy has improved in the last six months, according to 41 per cent of respondents, and 55 per cent expect things to get better in the next six months.

Present business conditions are considered to be good to very good by 47 per cent, again with the expectation for things to get better in the year to come (65 per cent). In the UAE, jobs are considered to be plentiful according to 49 per cent of respondents, and 53 per cent expect an increase in the number of job opportunities in the UAE in the next 6 months.

Current job perspective

According to two-fifths (43 per cent) of respondents, their companies have grown in terms of the number of employees in the last 6 months. About a quarter state that their companies have fewer people now. 49 per cent of respondents expect the number of employees in their company to grow in the next half year.

For the most part, job satisfaction is high in the Emirates. UAE professionals are happy with career growth opportunities (45 per cent), non-monetary benefits (48 per cent), and job security (47 per cent), but they are less happy with their current salary (35 per cent are satisfied).

“On the whole, the outlook for the region is a good one. Things are certainly improving with more and more major projects materializing 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, said: “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.” – TradeArabia News Service