Qatar’s economic outlook continues to be strong in the first quarter of 2012 with the support of a busy energy sector, according to a recent BOI (or Business Optimism Index).

Essential to diversification, the non-hydrocarbon industry reported more moderate results in the final quarter of last year. The survey also noted that expansions are in the plans in response to strong growth throughout the national economy.

Dun & Bradstreet South Asia Middle East worked with QFC (or Qatar Financial Centre) to release the BOI covering the first quarter of 2012 at a local media briefing.

The BOI for Qatar revealed a resilient nation, despite worldwide economic uncertainty and financial concerns in Europe.

Two important elements of the BOI reported high results. The hiring expectations was strong, as was the LSP (or Level of Selling Prices) which rose from fourth quarter of 2011 results of 10 to 23 during the first quarter of 2012.

The non-hydrocarbon sector’s Composite Index came in at 40 for the opening quarter of this year, five points below the results from Q4 2011. Around 45 percent of the respondents in the non-hydrocarbon industry have investment and expansion plans, up from only 35 percent in the previous quarter.

D&B Middle East’s general manager Manjeet Chhabra noted that optimism reigns in the Qatari business community throughout Q1 for 2012. Optimism has decreased slightly in the gas and non-hydrocarbon sectors when compared to the previous quarter. Chhabra stated that a tumultuous world economy is due to greater intensity in the European sovereign debt crisis and slowing growth around the world.

The economy of Qatar held strong through the 2008 and 2009 crisis, thanks to robust macroeconomic basics, and Chhabra expects healthy growth to continue. The non-oil industry dropped from 45 points to 40 in the composite index, as other sectors held steady scores. The first quarter of 2012 forecasts strong growth in the hydrocarbon sector.

The UN expects world gross product to grow by 2.6 percent in 2012 and a further 3.2 percent in 2013, growth rates lower than those levels seen prior to the crisis. Economic outlook in Qatar remains strong, partially because of the hydrocarbon exports comfortably set in contracts and long-term agreements. The hydrocarbon industry hit a peak growth level last year, with LNG production reaching 77mn tonnes per year. Real GDP for hydrocarbons will drop to 3 percent this year as a result of Qatari’s development moratorium extending to 2015 and restricting new hydrocarbon projects.

Qatar Financial Centre Authority’s director for Strategic Development, Asset Management & Banking Yousuf Al Jaida confirmed that Qatari businesses remain confident and optimistic. Al Jaida also stated that the business services industry remains strong and supports further opportunities in the nation and the region.

Bahrain Economy on the Path To Recovery

Recovery in the Bahraini economy is evident, according to forecasts from Standard Chartered Bank. Growth during the second quarter reached 1.1 percent, with a year-on-year growth rate of 2.4 percent in Q3.

Real GDP is expected to grow by 3.5 percent this year, up from the 1.9 percent growth seen last year. Robust oil product and a positive base effect will drive growth through 2012, while the non-oil sector reported contractions during Q3 of 2011, according to the SCB report.

Global research head and chief economist Gerard Lyons, along with research head for Europe, the Middle East, Africa and the Americas Marios Maratheftis, developed the Standard Chartered report.

Bahrain’s massive banking sector is the largest in the GCC based on economic factors. Assets of the nation’s retail banks total 300 percent of Bahrain’s GDP, with wholesale banking assets totalling 700 percent of Bahrain’s GDP. While wholesale banking experienced 14 percent contraction in the first quarter of 2011, it regained stability in the second and third quarters.

The five-year plan in Oman will support growth in the region and help the nation stay on track to reach diversification targets.

Infrastructure accounts for about 70 percent of the budgeted spending, with spending on social programs such as health care and education are also included.

The 2012 budget for Oman recorded an expenditure increase of 25 percent year-on-year.

Long-term growth will result from balancing the spending on higher wages with increased infrastructure spending, as per the five-year plan.

The Standard Chartered report also noted that Qatar will experience real economic growth in 2012, after hitting LNG output targets at the close of 2011. This high quality growth will come from activities in non-hydrocarbon sectors.

With global LNG consumption on the rise, Qatar’s export prospects continue to be bright, and LNG infrastructure should result in production of nearly 77mn tonnes per annum in the nation.

With Qatar set to host the 2022 FIFA World Cup economic activity in non-oil sectors is expected to pick up. Nearly $107 billion in projects are coming down the pipeline to prepare for the event, and a majority of those projects involve infrastructure. Transportation and accommodations will also see major investments. Twelve stadiums costing $4 billion are to be built.

Oil output in Saudi Arabia is expected to have jumped by 11 percent in 2011, moving from 8.28mn barrels per day in 2010 to 9.29mn bpd last year. Output in 2012 will drop down to 8.42mn bpd with Libyan output on the rise from 2010 levels of 0.45mn bpd.

Government spending is expected to drive growth throughout 2012, with $159bn in projects to be awarded this year by both the public and private sector. Infrastructure projects will account for the largest portion, along with construction of housing units.

The Nitaqat Saudization program was instrumental in generating more than 300,000 job opportunities in the private sector, according to Ibrahim Al-Moaiqel, director general of the Human Resources Development Fund (HRDF).

“These figures are based on reports that we have received after implementing the program since June last year. The HRDF branch offices across the Kingdom are vigorously working on achieving the goals of the Nitaqat program,” he told Al-Eqtisadiah newspaper.

Speaking to the newspaper on the occasion of the Liqaat fair in Riyadh, Al-Moaiqel said similar fairs would be held in major and small regions across the Kingdom.

“Under the program, job interviews will be arranged between employers and jobseekers under one roof. There will be a focus on the geographical features and economic conditions of the regions concerned while organizing the program,” he said.

“For example, we will focus on job opportunities in the Haj and Umrah service sectors while organizing such fairs in Makkah and Madinah. Similarly, there will be a focus on job opportunities in the olive festival in Al-Jouf, citrus and mango festivals, the fishing festival in Jazan, and the tourism festival in Asir.”

Al-Moaiqel said Liqaat fairs would be held in major and small regions across the Kingdom.

The HRDF chief expressed happiness over the tremendous response to the ongoing Liqaat program in Riyadh. “A number of leading companies have come forward with more job opportunities for Saudi jobseekers. Saudi Binladin Group and Maaden have offered 5,000 and 3,000 job opportunities respectively during the current year,” he said.

The first edition of a five-day Liqaat fair kicked off in Riyadh on Thursday.

The first two days were for women jobseekers while the remaining three days for young men that started on Saturday will end on Monday.  The second edition of the fair will be held in Jeddah on March 3-5 and the third in Dammam on April 14-16.

The ministry recently said that under the Liqaat program, the biodata of about 100,000 young Saudi males and females were being scrutinized and about 15,000 of them will be selected for job interviews.

The program, which is being implemented by a specialized company, is a joint initiative between the ministry and HRDF.

The ministry asked all Saudis not registered under the Hafiz unemployment assistance program to register their names in the Liqaat program and attend job interviews that will be held in Riyadh, Jeddah and Dammam. About 150 rooms in the three cities have been prepared for possible employers and eligible candidates to meet.

An official source at the ministry urged the private sector to take advantage of the opportunities being provided for them by the Liqaat program to employ young Saudis in order to improve their rank within the Nitaqat program.

“This is a chance for yellow and red companies to join the green category,” he added.

Under the Nitaqat program, companies have been labeled green, yellow and red depending on the level of Saudization they have achieved. The Ministry of Labor started implementing the first phase of the program on June 11, 2011 through classification of the companies and giving them a three-month period for improving their Saudization status. Companies meeting their required Saudization quotas started enjoying a number of special benefits when the second phase of the program came into force on Sept. 10.

Punitive measures against companies classified in the red category were effective on Nov. 26 at the end of a six-month grace period, while yellow companies will face penal action effective from Feb. 23, at the end of a nine-month grace period.

The private sector in the Sultanate has vast employment opportunities for Omani job-seekers, said Shaikh Abdullah bin Nasser al Bakri, Minister of Manpower, during an annual meeting with the ministry’s department heads at Oman Tourism College. The minister pointed out that the private sector provided jobs for 62,762 citizens out of 104,475 job-seekers employed in different sectors last year.

Al Bakri noted that the private sector witnessed a high rate of resignations among citizens who wished to join the government sector. He urged all those concerned to increase the employment opportunities in the private sector to accommodate more job-seekers in co-ordination with the Manpower Ministry and the Public Authority for Manpower Registry.

The minister hailed the mechanism implemented in Direct Employment Centres as a big success, saying that the units offered an efficient measure in answering the needs of job-seekers.

He stressed that the labour market in the Sultanate is still capable of absorbing large numbers of citizens of different educational backgrounds in its speciality segments. He expressed satisfaction with the private sector’s co-operation in this respect.

Al Bakri also noted that expatriate manpower in the private sector witnessed a remarkable increase last year. He asked for proper measures to regulate the labour market and the recruitment of expatriates in the private sector. He added that the joint sectoral committees for Omanisation now have representatives of the industrial stakeholders to develop general policies for the committees and approve their plans and mechanisms.

He said the Strategic Planning Committees approved a plan to develop inspection and increase the efficiency of occupational health and safety.

In this context, the minister referred to an MoU that the Sultanate signed with the International Labour Organisation last year on safeguarding the interests of all “three parties of production”, which are the government, the employers and the workers.

He affirmed that the social dialogue plays an important role in developing the relationship between employers and employees. Speaking about the efforts of Sanad Programme last year, the minister said that Sanad employed 24,000 Omanis.

At this point, the minister called for the Omanisation of more jobs to offer more opportunities to citizens and to develop methods of self-employment, public awareness and Sanad incubators at technical colleges and vocational training institutes.

He added that Sanad board of director agreed in its last meeting to give licence to recruit of expatriate manpower in the field of sewing, as per the rules and regulations stipulated by the Ministry.

Speaking about technical education, Al Bakri said that 10,500 students who were General Education Diploma holders have been admitted to the colleges of technology.

The ministry continues its efforts to expand the capacity of admission at vocational training centre and fishermen’s centre.

The ministry also updates and expands its technical workshops and fosters relations with the private sector, while at the same time focusing on quality training that meets the actual needs of the labour market, said the minister.

Al Bakri stressed the importance of quality control in technical education and vocational training, as well as private training. He added that the ministry is very keen human resources development and that it keeps upgrading its training plans for all employees.

The meeting was attended by Dr Mohammed Hafeedh al Dhahab, Adviser of the Manpower Ministry, and Dr Muna bint Salim al Jardaniyah, Under-Secretary of the Ministry for Technical Education and Vocational Training, Hamad bin Khamis al Amri, Under-Secretary of the Ministry for Labour Affairs, and advisers at the Manpower Ministry.

The Abu Dhabi emirate plans to set up three industrial parks that are expected to provide about 93,000 job opportunities when completed, Abu Dhabi-based Al Ittihad daily reports Monday citing an official.

Abu Dhabi’s Higher Corp. for Specialized Economic Zones, or ZonesCorp, is currently carrying out studies about these industrial cities whose infrastructure is expected to be completed in 2015, Mohamed Al Qamzi, ZonesCorp’s chief executive, told the paper.

Two of the industrial parks will be located in the western part of the Abu Dhabi emirate, one in Ruwais and the other in Zayed City, the daily says quoting Qamzi.

The industrial city in Ruwais will cover an area of 14 square kilometers and will target the manufacture of plastics, petrochemicals, construction materials, and chemicals in addition to providing logistics services, he told Al Ittihad.

The Zayed City’s industrial park will cover an area of 2.4 kilometers and aims to attract projects in the sectors of oil and gas field services as well as logistics services, Qamzi said according to the newspaper.

The third industrial park will be located in the Mussafah area and will house auto repair shops, maintenance centers for heavy machinery and other related facilities, Qamzi told the daily.

The nominal GDP of the Gulf region hit $1.34 trillion, backed by growth in Saudi Arabia, Qatar and the UAE. This figure represents a year-on-year expansion of 7.4 percent last year, an increase of 4.8 percent (or $1.08 trillion) from 2010 according to a report from the National Bank of Abu Dhabi.

The economy of the GCC ranks 14th in the world, behind Australia.

Most of the growth was a result of increased oil production in the UAE and Saudi Arabia, and expansion in Qatar.

Dubai spot oil prices averaged around $105.50 per barrel, a 35.2 percent increase over 2010 prices and above the 2008 peak of $94 per barrel. Nominal GDP in the Gulf is expected to jump by 24.6 percent last year, well beyond the 17.7 percent growth seen in 2010.

GDP contracted in 2009, shrinking by 19 percent.

Group chief economist at NBAD, Giyas Gökkent stated that slower growth rates are expected in 2012 should oil output in the GCC drop as Libyan supply increases. Oil prices may also experience pressure when anticipated global economic slowdowns occur.

Qatar has imposed a moratorium on further developments after expanding the natural gas industry. Boosts from that expansion will grow faint as Qatar reaches the existing targets and the effects of the moratorium are felt.

Real GDP growth in the GCC should hit about 4 percent this year, according to Dr Gökkent. Fallout from the Eurozone sovereign debt crisis will affect that growth, although prospects are unclear.

According to the US Energy Information Administration, oil should hit $100 per barrel depending on the severity of the worldwide slowdown. Based on that forecast, nominal GDP in the GCC should hit $1.36 trillion this year with the nominal GDP of the UAE hitting $344 billion.

Growth in non-oil industries is expected to remain steady at levels seen in 2010. Most of the activities in those industries are dependent on credit growth.

Key Dubai Sectors Experienced 4 Percent Growth

Dubai focused on consolidation in 2011, creating steady growth in many important economic sectors. Debt loads decreased in several leading corporations and confidence swelled, despite lingering concerns regarding slowdowns in other areas affecting the emirate.

Year-end data has not been released, but expectations state that Dubai experienced economic growth of 4 percent in 2011 based on a Saudi American Bank Group report. This growth was supported by strong performance in the service and trade sectors.

Dubai World and other corporate organizations have worked on debt restructuring over the past year, wading through difficulties resulting from the real estate market drop in 2009. Although corporate debt in the emirate remains high, analysts are confident that internal cash resources and refinanced bonds will meet the need.

Dubai remains susceptible to worldwide economic downturn, as evidenced in 2008 and 2009. Since tourism, trade and financial sectors contribute heavily to Dubai’s GDP, a European recession and slowdowns in other areas would certainly impact the economy in the emirate. Dubai has developed hardiness in recent years that would allow the region to ride out tough economic times.

Confidence in the coming year is evident in Dubai, as the government steps up investments supporting growth. The 2012 budget received Sheikh Mohammed bin Rashid Al Maktoum’s approval in December of 2011 and featured infrastructures expenditures representing 41 percent of total spending, with 29 percent of expenditures marked for education, health care, culture and housing.

The budget also targets the deficit as the revenue shortfall estimates stand just below $500 million, less than 50 percent of last year’s shortfall. Total expenditures in the 2012 budget stand at $8.79 billion, with income forecasted at $8.29 billion. This planned deficit reduction should support growth and bolster investor sentiment.

Recovery will be supported by lower inflation levels at the beginning of 2012. Consumer inflation at the end of November registered at only 0.2 percent, after having held steady below 1 percent for nearly all of last year. The property market in Dubai remains subdued and rental prices are experiencing minimal pressure, both key factors in inflation. Certain costs are forecasted to hold steady for 2012, including food, property and fuel, meaning inflation rates in Dubai should continue to be low.

Dubai’s tourism industry has not felt any marked effect from global slowdowns, with passenger levels at Dubai International Airport continuing to rise. Hotel occupancy rates have returned to levels seen in 2007 and revenue per room has increased.

As state-backed ventures reach more manageable levels of debt, and economic conditions continue to improve, Dubai is set for moderate growth in 2012.

Positive Fiscal Numbers Expected in 2012 for the GCC

Strong crude oil prices and improved regional production levels will create positive fiscal conditions in the GCC throughout 2012, according the Global Investment House in Kuwait.

Slight decreases in crude prices and upheaval across the global economy will cause economic slowdown in the GCC, but the real GDP in the region will continue to be positive and return impressive numbers.

Reports regarding the six members forecast a budget surplus of $183 billion for the fiscal year ending in 2012. Surplus estimates for the next fiscal year fall slightly to $179 billion as a result in higher spending.

Saudi Arabia will produce a majority of the surplus, totalling $80 billion or about 45 percent of the 2012-2013 surplus.

Kuwait will record a surplus of slightly below $60 billion, with Qatar coming in at $20 billion and the UAE recording a $18 billion surplus. Oman is expected to record a surplus of slightly more than $1 billion, with Bahrain suffering from a shortfall.

Political conditions have improved in Bahrain, although the nations’ financial sector was hit hard during the turmoil when several investment and banking entities pulled out of the country.

Qatar 2022 World Cup organisers will ensure contractors adhere to international labour laws for workers employed on construction projects before the tournament, Qatar 2022 Supreme Committee Secretary General Hassan Al Thawadi said on Tuesday.

‘Major sporting events shed a spotlight on conditions in countries. There are labour issues here in the country, but Qatar is committed to reform. We will require that contractors impose a clause to ensure that international labour standards are met,’ Thawadi told an audience in the Qatari capital.

‘Sport, and football in particular, is a very powerful force. Certainly we can use it for the benefit of the region,’ he said.

Poor working conditions are common across the Gulf region, where impoverished men and women from South Asia have come for decades to toil on construction sites or oil projects or to work as domestic help.

Welfare workers say the sponsorship system, in place across much of the Gulf, and the lack of a minimum wage allows migrant workers to be exploited.

All foreign workers in the region must work for a local sponsor, and it is legally difficult to leave the sponsor before an employment contract ends without the sponsor’s consent. Many sponsors keep their workers’ passports.

Qatar has embarked on a massive domestic building programme in the run-up to the tournament. It plans to spend $11 billion on a new international airport, $5.5 billion on a deepwater seaport and $1 billion for a transport corridor in Doha. It will spend $20 billion on roads.

Qatar, where summer temperatures top 45 degrees Celsius, was the surprise winner of a December 2010 FIFA vote to choose the 2022 host country. It plans to build solar-powered, air-conditioned stadiums to overcome the sweltering summer heat.

Any penalty imposed on worker must not exceed five days’ wage.

UAE labour authorities have warned private sector employers against random cuts in the wages of their workers, saying any financial penalty for a single employee must not exceed five days salary per month.

Reacting to complains by workers, the Ministry of Labour said those who have been subjected to unfair wage cuts or deductions that exceed the defined limit can file a case with the Ministry against their employer.

A Ministry source, quoted by the Arabic language daily ‘Emarat Al Youm’, said any penalty imposed by the employer on his worker for any reasons must not exceed five days’ wage per month under the article 104 of the labour law.

“These fines must be recorded in a special register at the company which must state the value of the fine and the reasons for imposing it.”

The source said that in case the penalty includes a deprivation of the annual allowance or promotion, it must not be imposed more than once every year.

“Employers also must not impose any penalty on their workers for any mistake committed outside work…in any way, penalties should be applied only after the worker is notified of the problem.”

Emirat Alyoum said many employees complain that their employers are imposing heavy fines against them and making arbitrary and random wage cuts that could include their whole monthly salary.

The Ministry of Finance is working on actively implementing a decision made by President His Highness Shaikh Khalifa Bin Zayed Al Nahyan to increase the salaries of federal government employees and social aid and pensions granted to retirees.

According to a statement by Younis Haji Al Khoury, Undersecretary in the Ministry of Finance, the decision specifies that minimum pensions for retirees are to be increased from Dh6,000 to Dh10,000 a month.

The ministry is working with the General Pensions and Social Security Authority to this end. The pension increases will cover 21,512 retirees starting this month.

The statement adds that 37,950 federal government employees will have their salaries revised upwards.

In line with the royal decree, made on the occasion of the UAE’s 40th National Day, the Ministry of Finance has created a number of specialised teams from different departments. These teams have been tasked with implementing and preparing e-programmes and databases required for keeping records of the increases.

The government has increased the salaries of doctors and technicians working under the Ministry of Health by raising technical bonuses by 100 per cent.

“Amendments were also made to the schedules of consultants and to their pay raises. A total number of 7,317 doctors and technicians had been targeted.”

Public education sector

Al Khoury said employees in the public education sector — including teachers, directors, and principals under the Ministry of Education — had their allowances increased by 100 per cent.

“A total of 10,721 employees in the public education sector were targeted for these increases,” he added.

The finance ministry is currently working on implementing raises for employees within the judicial system, where judges are to receive a 100 per cent increase on their basic salaries.

He added that the increases will be implemented for 392 members of the judicial system, pointing out that salaries for 460 employees in the Diplomatic and Consular Corps at Ministry of Foreign Affairs are also to be increased.

Social aid

Al Khoury added that finance ministry continues to work in coordination with the Ministry of Social Affairs in order to implement increases for Emirati social aid recipients in order to ensure that new data is entered onto databases starting this month.

“The total number of recipients to be granted increases amounts to 31,564,” he said.

Al Khoury also revealed that a specialised team had been created to study the salaries of employees in independent federal bodies to determine which of them will receive increments.

Al Khoury also indicated that finance ministry specialists were working on improving the mechanisms of distributing salaries and coming up with social aid tools to ensure data is being recorded and that the process of implementing increases is carried out efficiently and on time.

Kuwait will soon allow expatriate labor forces to transfer visitor’s visas to work permits, only if they are hired by private companies to work in public sector ventures. The announcement was made on Monday by a senior government official.

The government implemented a temporary ban late last year on visa transfer, citing the need to carry out ‘demography restructuring’ measures.

Speaking to reporters at the inauguration of a women’s conference Monday, Ministry of Social Affairs and Labor Undersecretary Mohammad Al-Kandari said that the plan is to allow issuing work permits to private firms which have contracts with state departments. It is the first phase for lifting the ban.

Al-Kandari further indicated that the ministry will send a request on that regard to the Cabinet as soon as its new formation is announced following the parliamentary elections. Meanwhile, Al-Kandari revealed that the MSAL intends to review conditions for visa transfer which are likely to be mainly exclusive to labor forces with academic qualifications. “[Kuwait's] labor market doesn’t need more expatriate labor forces at the time”, Al-Kandari said, reiterating at the same time that the government is committed to a plan to increase the percentage of Kuwaitis in the local labor market from 31 to 34 percent by 2014.

Separately, the Kuwait Municipality reportedly plans to hold meetings with mayors of different areas around Kuwait in order to discuss the problems pertaining with the presence of clusters of single expatriate labor forces in these areas. The report, which quotes anonymous sources with knowledge of the subject, provides little information about the subject, aside from the fact that mayors were invited to give their ideas about the best solutions to solve these problems.

The UAE claimed the second place spot for economic performance in a recent Forbes Middle East study.

Higher oil prices over the last year have driven growth in profits and revenue across the economies of oil-exporting nations in the Arab world. Seven of those countries found a place on the study’s list of top performing economies.

Saudi Arabia claimed first place, with the UAE in second. Qatar ranked third place and Oman claimed fourth. Study results reveal that surplus revenues have allowed for increased spending in domestic infrastructure throughout Arab nations, as well as investments in key factors like education and health, increased standards of living, and enhanced employee wages. Kuwait claimed fifth place, with Iraq and Algeria following.

Khuloud Al Omian, editor-in-chief at Forbes Middle East, noted that the new year is full of optimism due to positive changes happening or set to happen in the Arab world. The goal of Forbes’ study was to capture a vision of the future for the region that reached a GDP of $1.05 trillion in 2011, representing 3.7 percent growth.

Reform and additional, positive government spending are expected for 2012, according to Al Omian.

Morocco ranked first among non-oil exporters and captured eighth place overall. Morocco’s GDP grew by almost 4.6 percent. Mauritania came in ninth, with 5.1 percent growth, while Jordan ranked tenth. Jordanian economic institutions have worked hard on policy implementations to pull the nation out of debts totalling more than $19 million. Growth in Jordan hit 22.5 percent. Stability in these nations is beneficial, especially given that the Arab Spring has not affected their economic performance.

Consumer Confidence Surges in Dubai

Dubai’s Consumer Confidence Index rose 15 points in the last quarter, reaching 125, based on data from the Department of Economic Development.

Recent statistics indicate that 22 percent more consumers feel optimistic about economic recovery, when compared to third quarter results. In terms of personal finance, 79 percent of consumers reported a positive position, and 70 percent expect the employment situation to improve.

Observations on the economic state indicate clear improvements over Q4, as over 60 percent of consumers are confident. Those working in the public sector have greater optimism for personal finance and the employment prospects, while nearly 67 percent of consumers believe that the time is right to purchase what they want.

The largest consumer concerns were rising food prices and the economy, with surging utility bills and job security following.

According to the DED, as stated by director-general Sami Al Qamzi, the intention of the CCI is to realistically assess consumer insight on changes within the economy. Understanding of consumer response and expectations benefits business owners and government, assisting with planning and decisions and improving market competition and transparency throughout Dubai.

According to the index, 41 percent of consumers spend on outdoor pursuits and new clothing, while 13 percent more consumers spent money on technology and new products when compared to Q3. A large majority of consumers have plans to decrease energy and phone bills this year, according to sources.

The Commercial Compliance & Consumer Protection Division’s deputy CEO Mohammed Lootah stated that the quarterly CCI aids the planning of banks, construction firms and retailers, as well as other vital players in the economy of Dubai. The results provide flexibility when adapting to shifts in consumer sentiment and conditions within the economy. Consumer confidence results clearly indicate the level of competition in the market and protects consumer rights.

The latest CCI targeted various consumer categories, including 70 percent male respondents and 30 percent female. Ages of respondents ranged from 20 to 59 and residents of 35 areas were represented. UAE citizens were included, along with Western, Asian and Arabian expats employed in diverse positions across the public, semi-public and private sectors. Questions ere posed covering local employment prospects, purchasing and personal finances over the coming 12-month period.

The DED’s Division of Commercial Compliance & Consumer Protection created the surveys and conduct them quarterly, cooperating with an international market research company.

Retail Bank Expansions Appearing in Dubai

Banks in the Gulf region are competing for prime space throughout the Gulf, looking to expand in the retail banking network due to weakening corporate loans and vague global economic outlook. Local banks are watching their corporate business shrink, along with the associated fees, and diverting attention to traditional banking in the domestic market.

National Bank of Abu Dhabi’s consumer & private banking general manager Suvo Sarkar noted that many regional banks are targeting retail banking to help create steady revenues and growth. NBAD has plans to open ten branches annually until 2015, bringing the branch network total to 150 and spreading across 12 nations.

About 85 percent of Gulf bank executives confirmed plans for retail expansions in the next three years, based on survey results from Accenture.

Expanding banks face a major problem in the shortage of talent. Higher wages and better benefits in the public sector draw potential employees away from retail banking. Many also move towards corporate banking, which offers a higher profile and greater excitement in terms of careers.

Sarkar noted that retail banking provides broader career opportunities and long-term positions within a culture of entrepreneurs.

After the Qatari government increased wages in the public sector several banks in the nation, such as Qatar National Bank, also raised wages by 60 percent.

Nationalisation programs across the Gulf place heavy restrictions on larger retail banks. Saudi Arabian banks with a staff of more than 500 employees need to ensure that at least 49 percent of those employees are local.