UAE Reality Check Shows Big Increases in Job Losses and Dropping Confidence

These are findings from YouGov's second 'Reality Check - UAE', a monthly research report, designed to help companies prepare for survival in a downturn.  The research tracks how UAE consumers are reacting to the global credit crunch and gives industry specific recommendations. 779 UAE residents responded to the survey between 20th-29th January 2009.

More than half (55%) of UAE residents say either a close friend or member of their family has lost their job in the last 3 months.  This is a dramatic rise from the previous month's benchmark where only one-third (36%) reported the same. The brunt of the losses were felt in the Real Estate/Construction and Banking/Finance sectors, as they were last month.

The study, which can be purchased monthly or quarterly in UAE and Saudi, gives relevant insight into how customer behaviour is shifting.  It has been designed to help brands stay relevant and plan through tougher times.

Despite the sharp increase in the amount of people UAE residents know who have lost their jobs (an increase of 19%), nervousness about job security has only increased 4%.  54% of those interviewed are nervous about job security, this compares to 50% from last month's wave of research. This may have something to do with the hastily introduced law making it all-but impossible to fire a UAE national. Ex-pats are the first to go, and there has been a massive increase in the amount of property for sale in Dubai. With only 30 days in which to find a job, many of Dubai's ex-pats are simply fleeing the country.

"The next few months are going to be difficult for most businesses.  What we are trying to provide here is a genuine perspective on how people are behaving based on real figures. It is important businesses use this kind of information to help plan, using innovation and strong leadership, to steer through tough times. All companies can play their part in re-instilling confidence in the economy. Although  nervousness about job security has not increased that dramatically the level is still high and this figure will need to come down if consumer spending is to resume to previous levels", says Nassim Ghrayeb, CEO of YouGov.

This month residents are settling into a more frugal way of living, with 74% of respondents indicating they expect their salary to not increase as much this year compared to 2008. This is a marked rise from the 67% polled in December.

It highlights the belt-tightening behaviour observed across the board in decreased and downsized spending, avoidance of malls, and delayed holidays. The shock of the current economic crisis on the lifestyles of UAE consumers has also begun to shift the perspectives of many residents. 46% indicated that the current economic climate in the UAE is making them consider relocating to another country - a hike from 38% compared to December.

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