June 6, 2023
Economy International

Saudi Arabia and UAE Lead the Way as Strongest Economies Globally

According to a recent report by Ipsos, a France-based research and consulting firm, Saudi Arabia and the United Arab Emirates (UAE) have secured the top two positions for the strongest economies globally. The report, which was conducted in collaboration with Thomson Reuters, is based on the Primary Consumer Sentiment Index (PCSI) and analyzes consumer opinions on the current and future status of the local economy, personal finances, and investment confidence.

The Ipsos Index has been extended to include 25 other countries globally, including the UAE since 2022. The report reveals that the UAE has emerged as the second-strongest economy in the world, with 63% of consumers expressing confidence in its economic power. However, the report also indicates a slight dip in the UAE’s consumer sentiment index from 71.3 to 70.7 in March 2023.

In contrast, Saudi Arabia has surpassed the UAE in the Ipsos Index, with 96% of consumers expressing confidence in its economic strength. Despite the slight dip, 95% of UAE consumers believe that the country is moving in the right direction, marking a one percent increase from February 2023.

The report also highlights that UAE residents have a positive outlook on their personal financial situation, with 44% considering it to be in good shape. However, the survey indicates a slight decline in their willingness to make significant purchases, with only 80% feeling comfortable enough with them.

Unemployment and job security are currently the main concerns for 42% of UAE consumers, overtaking inflation, which was the primary concern in the previous survey. Meanwhile, 29% of consumers have fears about climate change. Despite these concerns, the vast majority of UAE consumers remain optimistic, with 81% intending to invest in the future and 86% expecting the local economy to grow in the next six months۔

The Ipsos report reveals that both Saudi Arabia and the UAE continue to have robust and stable economies, with high levels of consumer confidence in their economic strength. Despite the slight dip in consumer sentiment, the report also indicates that the UAE is moving in the right direction, and UAE residents remain optimistic about their financial situation and the country’s economic future

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