1World Worries | March 2017 | Version 1 | Public

Primary Consumer Sentiment Index Saudi Arabia, June 2020

Introducing the Primary Consumer Sentiment Index

Ipsos Saudi Arabia’s Primary Consumer Sentiment Index (PCSI), isa national survey of consumer attitudes on the current and futurestate of the local economy, personal financial situation, as well asconfidence to make large investments and ability to save.

Consumer sentiment is a key predictor of purchase trends in themarket. Despite it being a lagging indicator, if consumerconfidence is high, people will make more purchases and theeconomy will expand.

Businesses and Policy Makers can monitor changes in the index tofactor the data in their decision-making processes. A wave-on-wave decreasing trend suggests consumers have a negativeoutlook on their ability to spend. Thus, manufacturers may expectconsumers to avoid retail purchases, particularly items thatrequire financing. Likewise, banks can anticipate a decrease inlending activity, mortgage applications, and credit card usage.

Introducing the Primary Consumer Sentiment Index

The PCSI result is driven by the aggregation of

four, weighted, sub-Indices

Overall Primary Consumer

Sentiment Index

PCSI Employment Confidence

PCSI Economic Expectations

PCSI Investment Climate

PCSI Current Personal Financial Conditions

1. Rate the current state of the economy in your local area using a scale from 1 to 7, where 7 means a very strong economy today and 1 means a very weak economy.

2. Looking ahead six months from now, do you expect the economy in your local area to be much stronger, somewhat stronger, about the same, somewhat weaker, or much weaker than it is now?

3. Rate your current financial situation, using a scale from 1 to 7, where 7 means your personal financial situation is very strong today and 1 means it is very weak.

4. Looking ahead six months from now, do you expect your personal financial situation to be much stronger, somewhat stronger, about the same, somewhat weaker, or much weaker than it is now?

5. Compared to 6 months ago, are you NOW more or less comfortable making a major purchase, like a home or car?6. Compared to 6 months ago, are you NOW more or less comfortable making other household purchases?7. Compared to 6 months ago, are you NOW more or less confident about job security for yourself, your family and other people you know

personally?8. Compared to 6 months ago, are you NOW more or less confident of your ability to invest in the future, including your ability to save

money for your retirement or your children’s education?9. Thinking of the last 6 months, have you, someone in your family or someone else you know personally lost their job as a result of

economic conditions?10. Now look ahead at the next six months. How likely is it that you, someone in your family or someone else you know personally will lose

their job in the next six months as a result of economic conditions?

Overall Primary Consumer Sentiment Index

Primary Consumer Sentiment IndexJune 2020 Summary

PCSI SUMMARY: JUNE 2020

Q. Generally speaking, would you say

things in this country are heading in the

right direction, or are they off on the

wrong track?

90%

10%

PCSI, June 2020

60.0Versus Previous Wave;

May, 2020

59.9

Q: Rate the current state of theeconomy in your local area using a scalefrom 1 to 7, where 7 means a verystrong economy today and 1 means avery weak economy.

51%

46%

3%

Q: Rate your current financial situation,using a scale from 1 to 7, where 7means your personal financial situationis very strong today and 1 means it isvery weak.

28%

52%

19%

65.%

31.%

29.%

16.%

15.%

Covid-19

Unemployment andjobs

Taxes

Corruption

Poverty and socialinequality

Right Direction /Wrong Track

Country EconomicSituation

Personal FinancialSituation

Top 5 Concerns for Consumers in Saudi Arabia

Right Direction

Wrong Track

Strong (T2B)

Neither Strong Nor Weak

Weak (B2B)

Strong (T2B)

Neither Strong Nor Weak

Weak (B2B)

Country’s General Situation

SAUDI ARABIA: RIGHT DIRECTION/WRONG TRACK

Trending

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%Right Direction Wrong Track

90%

10%

Q. Generally speaking, would you say things in this country are heading in the right direction, or are they off on the wrong track?

-3%

-1%

-7%

-1%

-3%

-3%

-1%

-14%

7%

5%

-13%

0%

-3%

-8%

-3%

-3%

0%

-3%

4%

-13%

-3%

-5%

-6%

SAUDI ARABIA: RIGHT DIRECTION/WRONG TRACKGlobal Comparison

94%

90%

65%

62%

61%

53%

45%

44%

40%

39%

37%

36%

36%

36%

35%

33%

33%

32%

29%

28%

27%

25%

23%

6%

10%

35%

38%

39%

47%

55%

56%

60%

61%

63%

64%

64%

64%

65%

67%

67%

68%

71%

72%

73%

75%

77%

China

Saudi Arabia

India

South Korea

Australia

Canada

Germany

Argentina

Turkey

Russia

Great Britain

Japan

Spain

Sweden

the US

Mexico

Poland

Italy

France

South Africa

Brazil

Hungary

Belgium

Right Direction Wrong Track

Q. Generally speaking, would you say things in this country are heading in the right direction, or are they off on the wrong track?% change compared

with previous month; May 2020

Covid-19 -5%

Unemployment and Jobs -9%

Taxes 16%

Corruption 0%

Poverty and Social Inequality 1%

Health Care 2%

Moral Decline 1%

Education -2%

Childhood Obesity -2%

Climate Change -2%

Terrorism -5%

Crime and Violence -2%

Maintaining Social Relations 0%

Threats Against The Economy 2%

Inflation 1%

Access To Credit 2%

Immigration Control -1%

Q: Which three of the following topics do you find the most worrying in Saudi Arabia?

WHAT CONCERNS SAUDI ARABIA

Concerns for Consumers in Saudi Arabia

65%

31%

29%

16%

15%

14%

14%

13%

13%

12%

11%

8%

7%

6%

6%

5%

4%

% change compared with previous month;

May 2020

Personal Financial Situation

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%Strong Neither Strong Nor Weak Weak

Q: Rate your current financial situation, using a scale from 1 to 7, where 7 means your personal financial situation is very strong today and 1means it is very weak.

CURRENT PERSONAL FINANCIAL SITUATION

Trending

28%

52%

19%

31%

28%

21%

21%

19%

18%

16%

12%

10%

10%

9%

8%

8%

8%

7%

7%

6%

6%

4%

4%

4%

3%

2%

China

Saudi Arabia

US

Sweden

Australia

Canada

Great Britain

India

Germany

Spain

Belgium

Turkey

Brazil

Hungary

France

Poland

South Korea

Italy

Argentina

Russia

Mexico

South Africa

Japan

CURRENT PERSONAL FINANCIAL SITUATION

% Strong

Global Comparison

Q. Looking ahead six months from now, do you expect your personal financial situation to be much stronger, somewhat stronger, about thesame, somewhat weaker, or much weaker that it is now?

FUTURE PERSONAL FINANCIAL SITUATION

Trending

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%Strong Neither Strong Nor Weak Weak

55%

27%

18%

Saudi Arabia’s Economic Situation

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%Strong Neither Strong Nor Weak Weak

Q: Rate the current state of the economy in your local area using a scale from 1 to 7, where 7 means a very strong economy today and 1means a very weak economy.

CURRENT STATE OF THE ECONOMY

Trending

51%

46%

3%

51%

43%

14%

11%

10%

9%

9%

9%

8%

8%

6%

5%

4%

4%

4%

4%

4%

3%

3%

3%

2%

2%

Saudi Arabia

China

Sweden

US

India

Australia

Turkey

Poland

Hungary

Germany

Brazil

South Korea

Russia

Mexico

Italy

France

Belgium

Canada

Great Britain

Argentina

Spain

South Africa

CURRENT STATE OF THE ECONOMYGlobal Comparison

% Strong

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%Strong Neither Strong Nor Weak Weak

Q: Looking ahead six months from now, do you expect the economy in your local area to be stronger, about the same or weaker than it isnow?

FUTURE STATE OF THE ECONOMY

Trending

70%

19%

11%

Employment

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%More Confident Less Confident

Q. Compared to 6 months ago, are you now more or less confident about job security for yourself, your family and other people you knowpersonally?

JOB SECURITY

Trending

58%

42%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%Yes No

Q. Thinking about the last 6 months, have you, someone in your family or someone else you know personally lost their job as a result ofeconomic conditions?

JOB LOSSES IN THE PAST SIX MONTHS

Trending

49%

51%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%Likely Unlikely

Q. Looking ahead at the next six months, how likely is it that you, someone in your family or someone else you know personally will lose theirjob in the next six months as a result of economic conditions?

JOB LOSSES IN THE NEXT SIX MONTHS

Trending

34%

66%

Investment Climate

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%More Comfortable Less Comfortable

Q. Compared to 6 months ago, are you NOW more or less comfortable about your ability to invest in the future, including your ability to savemoney for your retirement and your children’s education?

ABILITY TO INVEST IN THE FUTURE

Trending

58%

42%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%More Comfortable Less Comfortable

Q. Compared to 6 months ago, are you now more or less comfortable making a major purchase, like a home or car?

ABILITY TO MAKE A MAJOR PURCHASE

Trending

56%

44%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%More Comfortable Less Comfortable

Q. Compared to 6 months ago, are you now more or less comfortable making other household purchases?

BUYING HOUSEHOLD DURABLES

Trending

61%

39%

PCSI Deep Dive

OVERALL PCSI

Saudi Arabia Global Comparison

52.4

60.0

0

10

20

30

40

50

60

70

80

90

100

Mar

-18

Ap

r-1

8

May

-18

Jun

-18

Jul-

18

Au

g-1

8

Sep

-18

Oct

-18

No

v-1

8

Dec

-18

Jan

-19

Feb

-19

Mar

-19

Ap

r-1

9

May

-19

Jun

-19

Jul-

19

Au

g-1

9

Sep

-19

Oct

-19

No

v-1

9

Dec

-19

Jan

-20

Feb

-20

Mar

-20

Ap

r-2

0

May

-20

Jun

-20

0

10

20

30

40

50

60

70

80

90

100

Ch

ina

Sau

di A

rab

ia US

Swed

en

Ger

man

y

Ind

ia

Au

stra

lia

Can

ada

Gre

at B

rita

in

Be

lgiu

m

Fran

ce

Sou

th K

ore

a

Po

lan

d

Bra

zil

Arg

enti

na

Ital

y

Hu

nga

ry

Mex

ico

Jap

an

Spai

n

Ru

ssia

Sou

th A

fric

a

Turk

ey

60.0

Avg. 40.6

Avg. 61.7

PCSI PERSONAL FINANCIAL CONDITIONS

1. Compared to 6 months ago, are you NOWmore or less comfortable making a majorpurchase, like a home or car?

2. Compared to 6 months ago, are you NOWmore or less comfortable making otherhousehold purchases?

3. Compared to 6 months ago, are you NOWmore or less confident about job security foryourself, your family and other people youknow personally?

4. Compared to 6 months ago, are you NOWmore or less confident of your ability to investin the future, including your ability to savemoney for your retirement or your children’seducation?

5. Rate your current financial situation, using ascale from 1 to 7, where 7 means yourpersonal financial situation is very strongtoday and 1 means it is very weak.

6. Rate the current state of the economy in yourlocal area using a scale from 1 to 7, where 7means a very strong economy today and 1means a very weak economy.

Saudi Arabia

48.358.3

0102030405060708090

100

Mar

-18

Ap

r-1

8

May

-18

Jun

-18

Jul-

18

Au

g-1

8

Sep

-18

Oct

-18

No

v-1

8

Dec

-18

Jan

-19

Feb

-19

Mar

-19

Ap

r-1

9

May

-19

Jun

-19

Jul-

19

Au

g-1

9

Sep

-19

Oct

-19

No

v-1

9

Dec

-19

Jan

-20

Feb

-20

Mar

-20

Ap

r-2

0

May

-20

Jun

-20

Global Comparison

0

10

20

30

40

50

60

70

80

90

100

Ch

ina

Sau

di A

rab

ia

Swed

en

Ind

ia US

Au

stra

lia

Ger

man

y

Can

ada

Gre

at B

rita

in

Fran

ce

Be

lgiu

m

Bra

zil

Po

lan

d

Mex

ico

Arg

enti

na

Ital

y

Sou

th K

ore

a

Hu

nga

ry

Sou

th A

fric

a

Ru

ssia

Spai

n

Turk

ey

Jap

an

Avg. 62.1

Avg. 30.2

58.3

1. Now look ahead at the next six months. Howlikely is it that you, someone in your family orsomeone else you know personally will losetheir job in the next six months as a result ofeconomic conditions?

2. Looking ahead six months from now, do youexpect the economy in your local area to bemuch stronger, somewhat stronger, about thesame, somewhat weaker, or much weakerthan it is now?

3. Looking ahead six months from now, do youexpect your personal financial situation to bemuch stronger, somewhat stronger, about thesame, somewhat weaker, or much weakerthan it is now?

PCSI ECONOMIC EXPECTATIONS

59.866.7

0102030405060708090

100

Mar

-18

Ap

r-1

8

May

-18

Jun

-18

Jul-

18

Au

g-1

8

Sep

-18

Oct

-18

No

v-1

8

Dec

-18

Jan

-19

Feb

-19

Mar

-19

Ap

r-1

9

May

-19

Jun

-19

Jul-

19

Au

g-1

9

Sep

-19

Oct

-19

No

v-1

9

Dec

-19

Jan

-20

Feb

-20

Mar

-20

Ap

r-2

0

May

-20

Jun

-20

Global Comparison

0

10

20

30

40

50

60

70

80

90

100

Ch

ina

Sau

di A

rab

ia US

Au

stra

lia

Bra

zil

Can

ada

Ger

man

y

Swed

en

Arg

enti

na

Mex

ico

Hu

nga

ry

Ital

y

Po

lan

d

Spai

n

Sou

th K

ore

a

Gre

at B

rita

in

Be

lgiu

m

Fran

ce

Ru

ssia

Jap

an

Turk

ey

Sou

th A

fric

a

Avg. 66.8

Avg. 51.8

66.7

Saudi Arabia

49.3 57.9

0102030405060708090

100

Mar

-18

Ap

r-1

8

May

-18

Jun

-18

Jul-

18

Au

g-1

8

Sep

-18

Oct

-18

No

v-1

8

Dec

-18

Jan

-19

Feb

-19

Mar

-19

Ap

r-1

9

May

-19

Jun

-19

Jul-

19

Au

g-1

9

Sep

-19

Oct

-19

No

v-1

9

Dec

-19

Jan

-20

Feb

-20

Mar

-20

Ap

r-2

0

May

-20

Jun

-20

1. Compared to 6 months ago, are you NOWmore or less comfortable making a majorpurchase, like a home or car?

2. Compared to 6 months ago, are you NOWmore or less comfortable making otherhousehold purchases?

3. Compared to 6 months ago, are you NOWmore or less confident of your ability to investin the future, including your ability to savemoney for your retirement or your children’seducation?

4. Rate your current financial situation, using ascale from 1 to 7, where 7 means yourpersonal financial situation is very strongtoday and 1 means it is very weak.

5. Looking ahead six months from now, do youexpect your personal financial situation to bemuch stronger, somewhat stronger, about thesame, somewhat weaker, or much weakerthan it is now?

PCSI INVESTMENT CLIMATE

Global Comparison

0

10

20

30

40

50

60

70

80

90

100

Ch

ina

Sau

di A

rab

ia

Swed

en US

Ind

ia

Au

stra

lia

Can

ada

Gre

at B

rita

in

Ger

man

y

Bra

zil

Be

lgiu

m

Fran

ce

Arg

enti

na

Mex

ico

Sou

th A

fric

a

Po

lan

d

Spai

n

Sou

th K

ore

a

Ru

ssia

Hu

nga

ry

Ital

y

Turk

ey

Jap

an

Avg. 62.8

Avg. 34.0

57.9

Saudi Arabia

49.4 52.6

0102030405060708090

100

Mar

-18

Ap

r-1

8

May

-18

Jun

-18

Jul-

18

Au

g-1

8

Sep

-18

Oct

-18

No

v-1

8

Dec

-18

Jan

-19

Feb

-19

Mar

-19

Ap

r-1

9

May

-19

Jun

-19

Jul-

19

Au

g-1

9

Sep

-19

Oct

-19

No

v-1

9

Dec

-19

Jan

-20

Feb

-20

Mar

-20

Ap

r-2

0

May

-20

Jun

-20

1. Compared to 6 months ago, are you nowmore or less confident about job security foryourself, your family and other people youknow personally?

2. Thinking about the last 6 months, have you,someone in your family or someone else youknow personally lost their job as a result ofeconomic conditions?

3. Now look ahead at the next six months. Howlikely is it that you, someone in your family orsomeone else you know personally will losetheir job in the next six months as a result ofeconomic conditions?

PCSI EMPLOYMENT CONFIDENCE

Global Comparison

0

10

20

30

40

50

60

70

80

90

100

Ger

man

y

Ch

ina

Jap

an

Swed

en

Be

lgiu

m

Fran

ce US

Sau

di A

rab

ia

Gre

at B

rita

in

Sou

th K

ore

a

Po

lan

d

Au

stra

lia

Ital

y

Ind

ia

Can

ada

Hu

nga

ry

Arg

enti

na

Ru

ssia

Spai

n

Turk

ey

Mex

ico

Bra

zil

Sou

th A

fric

a

Avg. 53.1

Avg. 46.5

52.6

Saudi Arabia

Methodology

• Methodology – Self Administered Online Interviews

• Sample Size – 500 Respondents

• Age – 15 years old and above

• Sample Criteria – General Public

The PCSI Index is calculated by utilizing data from the survey results.Responses are divided into aggregated Top Box (Reward) numbers andBottom Box (Penalty) numbers. Using Shapely Value Analysis, valueswere generated for the penalty and reward for each question. Themagnitude of each question is the difference between the reward andpenalty. An Importance factor, which the ultimate weight of theparticular question in the index, is the magnitude of each questiondivided by the total magnitude of all questions. A Top Box Weight foreach question is calculated by dividing the Reward by the magnitude ofeach question. Similarly, the Bottom Weight for each question iscalculated by dividing the Penalty for each question by magnitude of thesame. The Index Value for each question is calculated by using theformula: Importance x (Top Box Wt * Top Box %) - (Bottom Box Wt *Bottom box %).

For more information, please contact:

Nicola Qahoush

Research Manager – Ipsos MENA

nicola.qahoush@ipsos.com

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people, markets, brands and society. We

make our changing world easier and faster to

navigate and inspire clients to make smarter

decisions. We deliver with security, simplicity,

speed and substance.

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Mohammed Minawi

Chief Client Officer – Ipsos MENA

mohammed.minawi@ipsos.com