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Consumer optimism in UAE higher than ever

Staff writer |
Abu Dhabi Department of Economic Development released the results of the first quarter report on economic indicators 2013.

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H.E Rashed Ali Al Zaabi, the Executive Director of the Planning and Statistics Sector of Abu Dhabi Department of Economic Development said that besides the basic indicators which are computed in most countries of the world, the Department is embarking on new types of composite indicators such as transparency in FDI policies, credit cards indicator and other composite indicators.

Mr. Al Zaabi added that the government development expenditure allotted for the next five years would amount to $87 billion (AED 320 billion) with a focus on large-scale development projects.

The indicators first quarter report pointed out that according to the consumer confidence index prepared by MasterCard in UAE, and the latest survey carried out in 2012, the consumer confidence index in the United Arab Emirates marked 91.4 points compared to 86 points scored in the previous survey.

Comparing the present results with previous survey results, consumers were more optimistic in the last survey. Living standards were 95.6 points vs. 88.6, employment 95.2 vs. 88.9, the economy 94.6 vs. 89.1 points, and stock market saw 86,9 vs. 77 points in the previous period. Consumers also remained very optimistic on fixed income (84.7 points vs. 86.2 points).

Abu Dhabi Department of Economic Development first quarter indicators show that the economies of the GCC countries achieved good growth rates in 2012 and that real GDP growth is expected to reach 4.6%, compared to 7.9% in 2011. Banks in GCC countries had adequate capital and their direct exposure to the sovereign debt crisis in the euro area was minimal.

With regard to oil, the report revealed that oil production rose with prices hiking above $100 a barrel, so GCC countries are expected to experiencing another year of current account surpluses, estimated between 10-20% of GDP for the region as a whole.

The report also shows that GCC countries have greater optimism in their living conditions, as 64% of consumers in UAE, 65% in Qatar, and 60% in Oman were optimistic.

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