Economics

Nielsen: Egypt Consumer Confidence Q3 2016 Posts Dramatic Decline

Consumer confidence levels in Egypt fell dramatically in the third quarter to a 10-year low, according to the latest consumer…

Share on FacebookShare on LinkedInTweet about this on TwitterEmail this to someone

Consumer confidence levels in Egypt fell dramatically in the third quarter to a 10-year low, according to the latest consumer confidence report from Nielsen. The Nielsen Consumer Confidence Index recorded a score of 70 for Egypt, 29 points below the global average of 99 and the country’s lowest Consumer Confidence Index score recorded by Nielsen in the 10 years the company has been tracking Egypt.

Consumers’ outlook on job prospects was a major contributor to declining confidence; just one quarter of Egyptians (25%) feel favorable about job prospects in Egypt over the next twelve months, a drop of six percentage points from the previous quarter. The number of consumers feeling positive about their personal financial outlook declined seven percentage points to 42% quarter-on-quarter, while the proportion of consumers who believe the coming 12 months will be a good time to buy the things they need and want decreased eight percentage points to 23% from the second quarter.

More than one in five Egyptians (22%) site the economy as their biggest concern over the next 12 months, followed by job security (13%). The majority of Egyptians (81%) believe Egypt is in an economic recession at the moment.  Nearly three in four (72%) have changed their spending patterns in order to save on household expenses and 36% are channeling their spare cash into savings accounts.

“In Egypt, local currency devaluation against the dollar were at a record low, and the cost of living is increasing across the board,” said Tamer ElAraby, Managing Director, Nielsen North Africa and Levant. “Amid the current situation, consumer confidence in the economy has declined by double digits in the third quarter. Steps are underway to secure a bailout from the International Monetary Fund to ease the current situation and to increase supplies of basic goods over the coming months. Depending on multiple economic corrections due to take place, we hope to see a more optimistic sentiment in the next quarter.”

In the latest online survey, conducted Aug. 10-Sept. 2, 2016, five of the world’s top 10 economies posted scores of 100 or higher, up from three that reached the milestone in the second quarter. The U.K. (106) and Germany (100) joined India (133), the U.S. (106) and China (106) with at or above-baseline consumer confidence scores in the third quarter. Index levels for the other five biggest economies showed mixed levels of below the-baseline pessimism: Canada (97), Brazil (84), Japan (71), France (69) and Italy (57). In total, 16 of 63 markets—representing countries from all five regions, and marking four more markets than the second quarter—reported optimistic levels above 100.
In the latest online survey, conducted Aug. 10-Sept. 2, 2016, five of the world’s top 10 economies posted scores of 100 or higher, up from three that reached the milestone in the second quarter. The U.K. (106) and Germany (100) joined India (133), the U.S. (106) and China (106) with at or above-baseline consumer confidence scores in the third quarter. Index levels for the other five biggest economies showed mixed levels of below the-baseline pessimism: Canada (97), Brazil (84), Japan (71), France (69) and Italy (57). In total, 16 of 63 markets—representing countries from all five regions, and marking four more markets than the second quarter—reported optimistic levels above 100.

Established in 2005, the Nielsen Consumer Confidence Index is fielded quarterly in 63 countries to measure the perceptions of local job prospects, personal finances, immediate spending intentions and related economic issues of real consumers around the world. Consumer confidence levels above and below a baseline of 100 indicate degrees of optimism and pessimism, respectively.

GLOBAL CONSUMER CONFIDENCE SCORES REFLECT ECONOMIC DIVERSITY AROUND THE WORLD

These are uncertain times and third quarter Nielsen Consumer Confidence Index scores varied dramatically region to region, demonstrating considerable economic diversity around the world. In Asia-Pacific, consumer confidence scores ranged from a high of 133 to a low of 46, with similar divergent scores in Europe (from 107 to 50), Latin America (from 104 to 57) and Africa/Middle East (from 108 to 70). In North America, however, confidence scores were more closely aligned in the U.S. (106) and Canada (97).

Notable global highlights include:

Global consumer confidence increased one point from the second quarter to a score of 99.

Confidence gains were seen throughout most measured markets in Asia-Pacific, Latin America and Europe. Meanwhile, confidence decreased in four of six Africa/Middle East markets and in one of two North American markets.

– Five of the world’s top 10 economies posted optimistic scores of 100 or higher: U.S. (106), China (106), U.K. (106), Germany (100) and India (133).

– Concerns about terrorism increased across Europe, North America and Asia-Pacific in the third quarter.In Europe, consumer confidence improved in 26 of 34 measured markets from the second quarter. The U.K.’s score increased eight points.

– In Asia-Pacific, confidence increased in 10 of 14 countries, while four markets were flat from the second quarter. Robust improvements came from Hong Kong, Thailand and Singapore.

– In Latin America, confidence increased in six of seven markets, including Brazil, which posted its first upswing in two years.

–  In the Africa/Middle East region, South Africa posted a solid confidence increase of nine points.

Confidence DECLINED IN FOUR OF SIX AFRICA/MIDDLES EAST MARKETS

In the six Africa/Middle East countries measured, confidence scores ranged from a high of 108 in the United Arab Emirates (a one-point decrease from the second quarter) to a low of 70 in Egypt (an 11-point decrease). Pakistan (101) and Saudi Arabia (100) posted confidence scores at or just above the optimism baseline despite declines of three and four points, respectively, from the second quarter. The most robust confidence increase in the region came from South Africa with a nine-point rise to 87. Morocco’s confidence also increased, rising six points to 89 in the third quarter.

To download the full report, please visit LINK

 

ABOUT THE NIELSEN GLOBAL SURVEY OF CONSUMER CONFIDENCE AND SPENDING INTENTIONS

The third-quarter online survey was conducted Aug. 10–Sept. 2, 2016. The findings in this survey are based on an online methodology in 63 countries. While an online survey methodology allows for tremendous scale and global reach, it provides a perspective only on the habits of existing internet users, not total populations. In developing markets where online penetration is still growing, audiences may be younger and more affluent than the general population of that country. Three sub-Saharan African countries (Ghana, Kenya and Nigeria) utilize a mobile survey methodology and are not included in the global or Middle East/Africa averages discussed throughout this report. In addition, survey responses are based on claimed behavior, rather than actual metered data. Cultural differences in reporting sentiment are likely factors in the measurement of economic outlook across countries. The reported results do not attempt to control or correct for these differences; therefore, caution should be exercised when comparing across countries and regions, particularly across regional boundaries.

Share on FacebookShare on LinkedInTweet about this on TwitterEmail this to someone

Knowledge Hub Specialized in Publishing Insights and Analytics Developed for Digital Marketing, Public Relations and Communications Experts.

Economics, Featured Stories

UAE launches new initiative to train 1 million Arab programmers

The UAE has launched a new initiative aims at training a million Arab youth to help the region expand in…

The UAE has launched a new initiative aims at training a million Arab youth to help the region expand in computer programming, considered the “language of the future”.

Sheikh Mohammed bin Rashid, Vice President and Ruler of Dubai, announced the programme that will open the door to “hundreds of thousands of jobs for Arab youth without leaving their countries”.

A new website, ArabCoders.ae, was developed to support one Million Arabs on their journey to become professional software developers. Master the craft on a FREE online platform with exceptional courses.

The new website will offers online certifications through courses such as website development, mobile interfaces, Android applications and training to become a data analyst. The portal is supported by Udacity, an educational organisation that provides online courses, as well as Middle East recruitment website Bayt.com.

The platform provides a specialized and integrated curriculum in computer science and programming, consisting of three months of training courses in cooperation with the world’s leading educational institutions and international companies.

At the launch, His Highness said, “Coding is the language of the modern era. Our goal is to teach it to one million young Arabs, in order to prepare them now for the requirements needed to excel in the future.” He continued, “Coding will create many job opportunities for young people to compete for remotely; it will pave the way for them to participate in the global economy online, from home.”

“Our project is part of the global initiatives to create hope in the region and making a future for the youth in the area,” Sheikh Mohammed bin Rashid said. “We want to contribute even a fraction of a solution to the problem of unemployment in the Arab world.”

 

In addition to classes and job postings, 1,000 students will receive scholarships, though the individual amounts have not been disclosed, as well as prizes for students totaling US$1.5 million (Dh5.51m). The top four tutors selected by students will also be incentivised, receiving $200,000 (Dh735,000).

There is a gap in skills and available jobs for youth throughout the Middle East North Africa (Mena) region. The World Economic Forum (WEF) said 65 per cent of people in Mena are under age 25, yet 27 per cent of this age bracket is unemployed.

The One Million Arab Coders initiative

The One Million Arab Coders initiative, managed by the Dubai Future Foundation, aims to empower one million young Arabs in the Middle East by training them, enriching their knowledge, improving their skills, providing them with jobs in the modern tech sector, and increasing their expertise in advanced science.

The initiative will also enable young Arab innovators to play a key role in Smart Government, E-Commerce and IT. The E-Commerce sector has become a global $15 billion industry, while the IT sector has reached $3 billion in the Arab world alone, and is growing at an annual rate of 12%.

This initiative is considered as the first step to mastering coding, which will be crucial to meeting the requirements of the future digital economy.

Share on FacebookShare on LinkedInTweet about this on TwitterEmail this to someone
Continue Reading
Economics

Egypt’s Digital Economy to Reach Record-High EGP 62 Billion in 2017

Egypt’s digital economy is set to reach a record-high of EGP 62 billion in 2017, with nationwide digital transformation improving…

Egypt’s digital economy is set to reach a record-high of EGP 62 billion in 2017, with nationwide digital transformation improving daily lives and businesses, leading organizations announced today at the Egypt Inspire event hosted by digital transformation enabler SAP.

In Egypt, ICT’s contribution to GDP is currently at EGP 56 billion, according to the Ministry of Communications and Information Technology. With 10 percent annual growth, the contribution could reach a record-high of EGP 62 billion in 2017. Small businesses will be a catalyst for Egypt’s technology-backed economic growth, with the United Nations’ Social Fund for Development loaning over EGP 3 billion to 150,000 micro-businesses and 15,000 small businesses.

With Egypt’s economy transforming, the Cairo-based Qalaa Holdings (formerly known as Citadel Capital, CCAP.caqalaaholdings.com), an African leader in Infrastructure and Energy, believes that investment in Egypt’s technology sector will drive growth.

“Public-private partnerships are essential for Egypt’s nationwide digital transformation to deliver sustainable economic, social, and environmental growth. Qalaa Holdings has seen strong business success on our own digital transformation, and we’re eager to share best practices with Egypt’s public and private sector organizations to drive Egypt’s diversified economy and national competitiveness,” said Mr. Ahmed Abd El Sattar, Group CIO, Qalaa Holdings.

Using business solutions running on the SAP HANA in-memory platform, Qalaa Holdings has simplified its IT landscape, and is driving real-time financial reporting and business analytics.

One of Egypt’s leading digital transformation enablers, EOH, an ARETA Global company, argues that the cloud will usher in new business insights and transform the citizen and customer experience, especially for SMEs. Cloud services will align with the Ministry of Communications and Information Technology’s ICT 2030 Strategy to unlock more growth opportunities for organizations of all sizes and verticals.

Egypt Inspire

“Egypt’s organizations want to stay relevant and competitive in the Digital Economy. Channel partners, such as EOH, help organizations, especially SMEs, to adopt cloud solutions. With the cloud, SMEs can gain the same levels of business competitiveness as large enterprises. We are exchanging smart tools and global resources for Egypt’s organizations to build for the future,” said Islam Youssef, Chief Technology Officer, EOH.

SAP Appoints New Egypt MD and Invests in Egyptian Talent Development

Signifying the strength of Egypt’s Digital Economy, SAP today announced a new investment plan for Egypt, crowned with the appointment of a new Managing Director for Egypt, Cherif Morcos.

Based in Cairo, Engineer Cherif Morcos brings more than 20 years of technology experience, and will report directly to Gergi Abboud, Managing Director for the Gulf, Levant, North Africa, and Pakistan at SAP.

“Egypt’s economy is rebounding, and 2018 will be a vital year for organizations to undergo digital transformation. The success of Egypt Inspire emphasizes SAP’s commitment to supporting Egyptian organizations with fresh ideas, practical strategies, real-life case studies, and partnering with public, private, and educational institutions to enable Egypt’s workforce of the future,” said Eng. Cherif Morcos, Managing Director, SAP Egypt.

Supporting Egypt’s digital economy and business innovation, the SAP Training and Development Institute launched the WINnovate design thinking program, which aims to embed a culture of innovation in organizations. The Institute also supports partnership with educational institutions, startups, and a Dual Study Program partnership with the German University in Cairo.

“Cherif Morcos has strong leadership qualities and in-depth knowledge of the challenges and opportunities facing Egypt’s organizations in their digital transformation. Our Egypt Inspire event is serving as a launch pad for Egypt’s organizations to exchange best practices, and seize the opportunity to drive new digital business models and upskill their staff on technology innovations,” said Gergi Abboud, Managing Director for the Gulf, Levant, North Africa, and Pakistan at SAP.

At the SAP Inspire event, hundreds of Egypt’s decision-makers from across the public, private, and academic sectors, along with startup enablers, discussed and debated the future of business innovation, experienced the latest cloud technologies across artificial intelligence, blockchain, machine learning, and the Internet of Things, and networked with their peers.

Share on FacebookShare on LinkedInTweet about this on TwitterEmail this to someone
Continue Reading
Economics

Schneider Electric international student challenge: 7th Go Green in the City

Schneider Electric – the global specialist in energy management and automation, has just launched Go Green in the City for…

Schneider Electric – the global specialist in energy management and automation, has just launched Go Green in the City for the seventh year running. This annual global challenge for business and engineering students is aimed at promoting innovative energy management ideas for smart cities.

From February 13th to May 12th, 2017, business and engineering bachelor, master or MBA students from all over the world are welcome to join the challenge.

By forming teams of two, with at least one woman to encourage diversity and inclusion, they will be required to submit a case study illustrating their ideas for innovative energy management solutions in cities for one of the four basic Schneider business challenge topics: Strategy & Technology, cooling solution energy efficiency, Energy Storage & Efficiency, Integrated urban energy systems or focus on any unique idea for going green.

Participation in the competition is growing each year:

Created in 2011, the competition attracts more student teams every year, showing that soon-to-be professionals are eager to discover Schneider Electric, its expertise and culture of innovation, while working on a business case, with the opportunity to meet experts and receive career advice. In 2016, 16,466 participants registered worldwide from 180 countries, leading to 1,184 submissions.

In China alone, the number of participants dramatically increased by 1,075% compared to 2015. In 2016, the winning team was from the University of Applied Sciences FH Aachen, Germany, for their idea of an innovative off-grid wind and pump solution to provide the rural agricultural communities with access to clean energy at a low-cost.

“The increased interest in Go Green in the City is a strong sign that future engineers and leaders are sensitive to the planet’s environmental challenges and keen to find solutions. In addition to offering students an exciting opportunity to showcase their talents in a gender equitable setting, this annual contest provides Schneider Electric with significant visibility as a leading global employer, helping us to attract the best talents in the long term, said Olivier Blum, Chief Human Resources Officer at Schneider Electric.

By sharing our expertise and mentoring the contestants, we are able to share our values, our visions of innovation at every level, with connected energy management and automation technologies as well as our commitment to diversity”.

The 100 semi-finalist team selection will be announced on June 9th. They will have two months to work with a mentor from Schneider Electric in order to help them to create a synopsis and a video presentation of their idea. After the 12 finalist teams are revealed on August 7th, 2017, they will be flown to Paris (France) to compete in the grand finale from October 9th to 13th, 2017. The winning team shall travel the world, VIP-style, visiting Schneider Electric facilities, networking with employees and high-level management. They will also receive job offers from Schneider Electric in their home countries.

To learn more about the Go Green in the City Challenge, please visit:www.gogreeninthecity.com and follow the challenge on the Facebook and Twitter pages.

Share on FacebookShare on LinkedInTweet about this on TwitterEmail this to someone
Continue Reading
Economics

IMA Announces Temporary Reduction on Membership Fees for Accounting and Finance Professionals in Egypt

To assist local accounting and finance professionals during Egypt’s fluctuating economic situation, IMA® (Institute of Management Accountants), the association of…

To assist local accounting and finance professionals during Egypt’s fluctuating economic situation, IMA® (Institute of Management Accountants), the association of accountants and financial professionals in business, has announced a temporary 50 percent reduction in IMA membership and CMA® (Certified Management Accountant) program fees. The CMA is IMA’s globally recognized certification program for management accounting and finance professionals.

“Relevant continuing education and certification are vital to the health of organizations and economies around the world,” said Jeff Thomson, CMA, CAE, IMA president and CEO. “We truly believe that the CMA program and educational programs need to flourish even in challenging economic environments, which we sincerely hope is temporal for the Egyptian people and business professionals.”

For more than 40 years, the CMA (Certified Management Accountant) certification has been the global benchmark for management accountants and financial professionals. Why? Because CMAs can explain the “why” behind numbers, not just the “what.” And that can give you greater credibility, higher earning potential, and ultimately a seat at the leadership table.

IMA’s price reduction is available to both new and renewing IMA members residing in Egypt only. Visit http://www.imamiddleeast.org/egypt-50 for more details.

About IMA (Institute of Management Accountants)
IMA, the association of accountants and financial professionals in business, is one of the largest and most respected associations focused exclusively on advancing the management accounting profession. Globally, IMA supports the profession through research, the CMA® (Certified Management Accountant) program, continuing education, networking and advocacy of the highest ethical business practices. IMA has a global network of more than 80,000 members in 140 countries and 300 professional and student chapters. Headquartered in Montvale, N.J., USA, IMA provides localized services through its four global regions: The Americas, Asia/Pacific, Europe and Middle East/Africa. For more information about IMA, please visit http://www.imanet.org.

For more information about the CMA program, visit Institute of Management Accountants website.

Share on FacebookShare on LinkedInTweet about this on TwitterEmail this to someone
Continue Reading