Consumer confidence in private businesses and the UAE economy is surging as there is a positive sentiment for multiple private businesses, resulting in a 12-month increase at 75.6%, as per the latest research conducted by credible sources. This growth has been largely driven by higher prices of oil and the growth of tourism revolving around Expo 2020.
According to business expert Kavan Choksi, an esteemed entrepreneur with valuable expertise in finance, observes this research demonstrates confidence in the Saudi economy, which is now at 91.3% after increasing for four months. There have been major improvements in the prices of oil, and a number of public IPOs have been issued for the nation’s primary infrastructural projects. All of these factors have generated a positive trend in the nation today.
The rise of consumer confidence in the future
As per credible reports, the month of January witnessed a drop in consumer confidence across the nation to about 57.4%, thereby marking a declining gap of 1.7% from the 59.1% recorded in December last year. At the same time, the nation witnessed a drop in business confidence from 1.6% to 53.2%, whereas employment confidence dropped from 74.2% to 71.6% in the month of December.
Besides the above, economic confidence in the region also faced a dip from 64.1% in December to about 60.9% recorded in January 2022, as per research reports by credible sources.
Business experts state that despite the total consumer confidence being very flat in Saudi Arabia, there are glimpses of positivity covering the economy, which resulted in a 12-month high this year, in January. A lot more recovery indeed needs to be done as the power of economic confidence has to extend to other sectors too. However, here the workforce in Saudi is very confident about the employment opportunities in the future.
This positive sentiment in the nation towards the whole economy and business has been triggered by some of the biggest hotel occupancy rates across the globe, the skillful management of the world crisis, and sufficient economic investment. Business confidence has surged by more than 2%, and the economic confidence has increased in January by 0.5%.
In the opinion of Kavan Choksi and other credit research reports, the above trends are the result of the residual effects of the coronavirus pandemic, political conflicts, and movements in the region. Looking forward, it is expected that this trend will continue in most markets due to the recently announced plans to create a corporate regime for tax in the nation.
Specialists in the region will monitor the index closely to determine these impacts and other components influencing consumer confidence in the region. D/A has been developed by Sila and is an AI-empowered Arabic tool for gaining insights and creating strategies that boost brand growth in MENA and other regions. The technology is advanced that it brings value to humans to Big Data with success!