Despite the continuing economic challenges, consumers still remain upbeat about the Middle East region's future and its financial condition, according to the latest MasterCard Worldwide IndexTM of Consumer Confidence, released Tuesday. The survey recorded a three-point rise in Middle East consumer confidence from the previous six-month period, bringing the index to (85.7), significantly higher than Africa (73.8) and Asia Pacific (52.1). In the Middle East, Qatar and Oman topped the index with a remarkable score (93.6); followed closely by Egypt (88.3), Kuwait (88.3), Saudi Arabia (83.9) and the United Arab Emirates (82.1). Lebanon showed the highest increase in consumer sentiment (70.5), up by 46.4 points over the last six months. India (81.2) – one among the largest economies in the world, was ranked as the most optimistic nation in Asia, whilst Nigeria (96.4) retained the top spot in Africa, followed by Morocco (87.2). Six out of the seven Middle East markets polled recorded an increase in 4 key indicators which include regular income (86.3 to 91.3 index points), employment (82.9 to 85.5 index points), economy (82.5 to 86.5 index points), and quality of life (81.5 to 87.6 index points). Only the stock market indicator registered a decline (81.0 to77.8 index points). The positive indicators are viewed as the result of enhanced reforms within the region and introduction of new socio-economic opportunities, especially for young people, resulting in significantly improved overall growth forecasts. Oil concerns consequential to a deterioration in some parts of the Middle East. While the overall consumer confidence remained positive in the Middle East, concerns over future oil demand; rising food prices and housing components led to a significant decline in Saudi Arabia (down 14.5 index points) and UAE (down 10.8 index points). Minor deteriorations were also recorded in Qatar (down 6.1 index points) and Oman (down 5.2 index points) while Kuwait remained stable (88.3). Increase (up 12.9 index points) in consumer optimism, makes Egypt a structurally bullish story which is largely attributed to the regime change last year If consumer sentiment reflects economic growth over the next six months within the Middle East, the region will remain an exciting story.
