The study said that the current Saudi Arabia MasterIndex score of 92 out of a possible score of 100 represents a slight decrease from the record high of 97.3 registered six months ago; however it shows that consumers are still very highly optimistic.

The latest survey of consumer confidence conducted by MasterIndex in the first half of 2007 measures perception of consumer confidence for the six months ahead.

In the Middle East and Levant (MEL), Saudi Arabia ranks second in overall consumer confidence, losing one rank to Egypt which registered a record increase compared to the last survey.

Commissioned by MasterCard Worldwide and conducted bi-annually in selected markets in South Asia, Middle East and Africa (SAMEA), the survey analyses consumers' perceptions of economic conditions over the six months ahead.

The MasterIndex has a range of 0 to 100 with 50 as the mid-point. A score above 50 indicates that consumers are optimistic about the economic climate, while a score below 50 signals that consumers are pessimistic about the economic situation.

The countries surveyed are Saudi Arabia, the UAE, Kuwait, Lebanon, Egypt, India, and South Africa. The scores are based on respondents' answers to questions relating to five key economic barometres — employment, economy, regular income, stock market and quality of life. Bi-annual MasterIndex surveys have been held across SAMEA for the past three years and across Asia Pacific for the last 15 years.

In the latest survey, the MasterIndex scores for all key barometers declined slightly: Perceptions on quality of life registered at 94.5, a decline of 3.1 points (97.6 in H2 2006), regular income was at 94 as compared to 96.5 six months ago, sentiment on employment declined from 97.9 in H2 2006 to 91.3, economy fell from 98.8 six months ago to 90.5 in the current survey and stock market registered at 89.8, as compared to 95.8 in H2 2006. 

On a market basis, Saudi Arabia follows Egypt which tops the list of Middle East countries with the highest consumer confidence (94.3 against 78.2 six months ago) and registered the biggest increase as well. Saudi Arabia and Egypt are followed by Kuwait (91.6 against 94.5 six months ago), the UAE (88.8 against 80 in the second half of 2006), South Africa (80.7 against 86.5 six months ago), India (63.6 against 65.1 six months ago) and Lebanon with the sharpest decrease from 67.6 in the second half of 2006 to 38.6 in the current survey.

Overall confidence across the Middle East & Levant stayed at the same level of confidence with 83.6 as compared to 83.9 in the last survey. Since the MasterIndex initiative was introduced in 2004, overall consumer confidence in MEL has increased steadily from the first average score of 66.1 and currently has an historical average of 76.7.

Survey results for the larger SAMEA region showed a trend of improvement until this latest survey when the result further slipped from 82.2 in the first half of 2006 to 80.3 six months ago to now 79.3.

Overall SAMEA has an historical average of 75.6.

SAMEA Highlights of the H2 2006 MasterIndex of consumer confidence findings are as follows:

Saudi Arabia

The current MasterIndex of 92 has decreased from the score registered six months ago (97.3) and ranks Saudi Arabia as the second in the MEL.

The record all time high was in H2 2004 with a score of 98.4. The results have since shown a regular trend of increasing respectively decreasing confidence each wave. The current result shows that consumers are less pessimistic however still highly optimistic.

The current scores are employment (91.3 against 97.9 six months ago), economy (90.5 against 98.8), regular income (94.0 against 96.5), stock market (89.8 against 95.8) and quality of life (94.5 against 97.6).

United Arab Emirates

The current MasterIndex of 88.8 is higher than the previous two periods surveyed (80.0 in H2 2006 and 77.5 in H1 2006). Sentiment on employment (95.2 against 79.0 six months ago), regular income (92.2 against 78.4) and economy (96.0 against 85.7) significantly improved, followed by stock market (81.5 against 76.5).

Quality of life dropped from 80.6 in the second half of 2006 to 79.1 in the current survey.

Kuwait

The current MasterIndex score in Kuwait of 91.6 is slightly lower than the score of 94.5 in H2 2006. The employment score slightly improved from 92.4 six months ago to 94.1, though the sentiment against the other factors declined marginally with the following scores: Quality of life (93.3 against 94.6 six months ago), economy (93.7 against 96.9), regular income (93.6 against 97.2) and stock market (83.3 against 91.4).

Lebanon

In the 2H 2005 survey Lebanon consumer sentiments on all five economic factors were optimistic, with optimism dropping off in H1 2006 and increasing again in H2 2006 to a MasterIndex score of 67.6. The current score represents a sharp decrease in the overall score (38.6) and all key barometers. The latest survey scores are economy (43.9 against 71.1 six months ago), quality of life (22.6 against 54.7), employment (38.3 against 87.0, regular income (67.9 against 69.3) and stock market (20.5 against 55.7).

Egypt

With a MasterIndex score of 94.3, consumer confidence in Egypt is at a record high, increasing from 78.2 in the second half of 2006. The trend analysis shows a steady increase in consumer confidence from 43.2 in the first half of 2004 to the record high of 94.3 in the current survey. The latest survey scores are economy (97.5 against 73.0 six months ago), quality of life (90.6 vs. 77.7), employment (94.6 against 81.2), regular income (96.5 against 83.0) and stock market (92.4 against 75.9).

India

India's current MasterIndex of 63.6 is a significant reduction from last year's result of 76.4 which was the strongest on record. The score results are: Stock market sentiment (76.8 against 77.0 six months ago), economy (56.1 against 61.9), employment (49.4 against 56.3), regular income (67.7 against 70.6) and quality of life (67.8 against 59.8).

South Africa

Consumer sentiment in South Africa has dipped from the record high a year ago (91.1), although it is still strong in comparison to previous surveys. The current MasterIndex of 80.7 is down from the score of 86.5 in the last survey six months ago. The score results are: Employment (81.2 against 83.3 six months ago), economy (88.2 against 86.3), regular income (98.3 against 96.8), stock market (66.8 against 83.4) and quality of life (77.9 against 82.8).