Dubai: The confidence index in the UAE rose to its highest level this year, with more consumers now bullish about the economy, their finances, jobs and the stock market.

The latest MasterCard Index of Consumer Confidence, released on Tuesday, shows that consumer sentiment in the UAE garnered a reading of 94.7, up from 91.4 in the previous survey, partly due to improved conditions in major sectors of the economy, such as tourism, logistics and aviation.

The index is based on a survey conducted between April and May this year among 12,205 respondents in the Asia Pacific, Middle East and Africa.

Across the Middle East, Kuwait emerged as the most bullish market, with a score of 96.8, overtaking Qatar (96.4). The UAE came third in the regional ranking, followed by Saudi Arabia (93.3), Oman (87.1), Egypt (54.1) and Lebanon (26.9).

When compared to the previous edition of the survey released six months ago, positive perceptions about the UAE economy rose from 94.6 to 96.8 and employment, from 95.2 to 96.1.

When it comes to regular income and the stock market, UAE consumers are also more optimistic, with the scores rising from 84.7 to 93.1 and 86.9 to 92.8 respectively.

Improved economic conditions

Eyad Al Kourdi, UAE country manager at MasterCard, said that confidence among UAE consumers has largely been upwards but the improved economic conditions in the country have pushed the sentiment higher.

“Its visionary leadership and ambitious plans, as well as the promising growth in key sectors such as tourism, logistics and aviation, and the rising asset valuations have inspired confidence among the country’s residents. We are equally positive in our outlook for the future,” he said.

Consumer sentiment between genders also varies, with female respondents indicating they are more optimistic about the coming months than their male counterparts (95.4 versus 93.9). Younger consumers (92.2) are not as bullish as those who are over the age of 30 (95.4).

UAE consumers have always figured prominently in confidence surveys. Analysts have said that residents in the country are becoming increasingly upbeat as economic conditions have improved. The UAE enjoys a safe haven reputation, while the real estate market in Dubai has recovered, and the job prospects and tourist traffic have also increased.

“We are seeing more tourists, heavier traffic and busier malls, as well as more well-attended conferences and exhibitions and a larger frequency of entertainment events. All of these indicate a healthier economic environment,” Abhik Gupta, Nielsen’s executive director for consumer packaged goods in Middle East, North Africa and Pakistan, said in an earlier interview.