Consumers in KSA among most optimistic about personal finance

JEDDAH — The Saudi Arabian consumer remains one of the most optimistic, with a net 33 percent of respondents expecting to see improvements in the state of their personal finances, Credit Suisse Research Institute said Monday its third annual Emerging Consumer Survey.

However, this optimism has slipped slightly from last year, it added. More significantly, the report noted a reversal of what had been a rather broadly based level of optimism in 2011 to a more obvious contrast between expectations for the rich and poor. Fifty six percent of the richest respondents expect a financial improvement but less than half of that are at the lower end of the scale.

In 2011, the report saw significant increases in public sector incomes, which provided the backdrop to the survey for Saudi Arabia. The minimum wage for government employees was nearly quadrupled — a figure matched in the private sector. This coincided with a range of job creation initiatives and other social provision. It not only contributed to a buoyant consumer position, but notably also increased optimism among the lower and middle-income earners. It appears as if this momentum has now declined and optimism has slipped as the positive impact on sentiment is dropping year on year, the report added.

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