GCC Consumer Confidence Out Performs that of G8 Nations
- The GCC is among the most optimistic regions globally, with KSA leading globally in consumer confidence despite the Covid-19 pandemic.
- The GCC is among the world’s most actively engaged in the prepaid economy – i.e., paying for goods/services in advance or as they go.
- Prepaid mobile is the preferred choice for 76% of consumers across the GCC
Riyadh, Saudi Arabia – 10 February 2020: Consumers in the GCC are among the world’s most optimistic when considering a post-Covid future according to the Inaugural Ding Global Prepaid Index (GPI). This bi-annual global study commissioned by Ding, the world’s largest mobile top-up service, examines the views of 7,000 respondents across KSA, UAE, Qatar, US, the UK, France, Brazil, Indonesia, and the Philippines.
Consumer attitudes towards the pandemic
Despite the difficulties imposed by the pandemic, consumers in the Gulf are among the most positive regarding their current and future situation. The overall consumer confidence rate stood at 63, far higher than the Global Consumer Confidence Index at 52.1.
Diving deeper into the data, KSA consumer confidence is at 68, UAE at 62, and Qatar, which only recently restored diplomatic ties with the rest of the GCC, is 58. This positivity is also felt towards the economy, with 71% in the GCC stating that they have an optimistic economic outlook and 66% feeling optimistic about their future work prospects.
There is a direct correlation between consumer confidence and perceived government handling of the Covid crisis (and the death rate), and again, GCC countries scored highly. Saudi Arabia had the highest approval rating for its government, with 82% stating that the government is doing all it can to deal with the crisis. In the UAE, this stands at 79%, while it is at 72% in Qatar. This is in stark contrast to the West, where just 34% in the US agree the government is doing all it can to handle the crisis and 47% in both France and UK.
Vaccine hesitancy in the region is also low in comparison to the rest of the world. The majority of those surveyed in the GCC (62%) plan to get the vaccine once it is available. This was highest in the UAE (68%), followed by KSA (66%), while Qatar seems to be slightly more skeptical with 53%. This is still substantially higher than France, where just 33% of the respondents plan to get vaccinated.
Commenting on the findings, Mark Roden, Founder and Chief Executive of Ding, said: “The GCC’s swift response to the Covid-19 pandemic has been in contrast to many other countries around the world, and maybe reflected in the consumer confidence of the region – globally, the pandemic has devastated people and businesses, but it is interesting that consumers in the GCC are feeling more confidence and optimism about their future than many others around the world.”
Choice or necessity?
The report also shows that consumers in the GCC are among the world’s most avid users of prepaid mobile phone contracts – and that there is a significant appetite for other prepaid products. Prepaid mobile is favored by a whopping 81% in Qatar, 76% in KSA, and 70% of those surveyed in the UAE. Overall in the GCC, prepaid mobile is the preferred option for 76% of the respondents – but why?
Interestingly, those surveyed claim that it acts as a tool for controlling expenditure (28%) and suiting their needs better (31%). This popularity is especially striking compared to other markets like the US, where just 32% of respondents said they choose prepaid mobile.
Roden noted: “The Global Prepaid Index has revealed the importance of prepaid products for GCC consumers and our research shows that prepaid products are preferred across the economic divide – which goes in some way against the long-held assumption that many were choosing prepaid options out of necessity rather than choice.”
Furthermore, he added: “In fact, 83% of people surveyed globally claimed to engage in the prepaid economy by choice rather than out of necessity, enabling them to control their expenses while at the same time allowing those without a bank account access to communications and financial services.”
Appetite for prepaid products is not limited to mobile phones – KSA has the highest prepaid market size, with 95% of those surveyed had engaged in at least one facet of the prepaid market, including mobile bills, financial products, other bill payments like utilities, or gift cards/vouchers. In Qatar, this stands at 91%, while in the UAE, it is at 90%, highlighting the prepaid market’s overall opportunity. The majority of these users (76% in the GCC) engage in prepaid mobile bills, with 51% paying other bills prepaid.
The lockdowns and travel restrictions have left many unable to see their loved ones, making the need to communicate virtually more important than ever before. Even on its own platform, Ding has seen close to a 50% annual uptick in prepaid transactions during 2020, with customers prioritizing keeping in contact by either topping up their own phones or sending airtime to others.
About the Ding Global Prepaid Index (GPI)
Ding is the largest mobile top-up service in the world – the Ding Global Prepaid Index (GPI) is a major bi-annual survey analyzing the Prepaid market – which is the market for products such as prepaid mobile phones, prepaid visa cards, prepaid utility bills, and much more. It is the market for consumers who prefer to pay for services as they go, or in advance, rather than bill payment.
The inaugural GPI, which surveyed 7,000 respondents across Europe, Asia, and the Americas, specifically KSA, UAE, Qatar, US, the UK, France, Brazil, Indonesia, and the Philippines, looks at the attitudes and habits of this group, particular with the backdrop of the Covid-19 pandemic.