Professionals in Saudi Arabia optimistic about finances, jobs

JEDDAH — A recent survey of citizens and residents in Saudi Arabia who hold at least one payment card and are aged between 18 and 55, revealed that professionals are highly positive on the outlook for their own personal finances, household income and future employment opportunities, with 58 percent of the respondents indicating they expect their personal income to increase in the future. The survey conducted by Visa Inc., a global payments technology company, showed that the positive sentiment is also a driver for more spending on holidays, nights out and fashion and clothing in the coming 12 months. Over half of professionals in the Kingdom also said they intend to donate more to charity. The study showed that professionals consider children’s education (61%) and holistic development (58%), time with family (52%), and improving personal finances (46%) as the most important things in their lives. Professionals between 18 and 29 years of age are also focused on career advancement while balancing a healthy and fit lifestyle. Ahmed Gaber, Visa General Manager for Kingdom of Saudi Arabia, Kuwait, Oman and Bahrain, said “the study shows a strong relationship between confidence in the resilience and size of the Saudi market and individual expectations for a rise in their own personal wealth, which in turn is linked with higher levels of discretionary spending. The overall economy will also benefit from an increase in both spending and investments as that supports local business in the Kingdom.” The study identified five types of Saudi professionals based on their definition of luxury – exclusivity (26%), status seekers (25%), quality focused (22%), brand identifiers (14%), and experiential rewarders (13%). About 26 percent of Saudi professionals said they are driven by exclusivity in acquiring luxury items. They generally own products before others, and like getting services and experiences that are specifically catered to their preferences. They are likely to hold one premium credit card on average and spend larger amounts on casual dining, personal care and jewelry. Nearly 25 percent of the respondents indicated that they associate luxury with status. These consumers use products that are often endorsed by celebrities since they believe luxury is a sign of social standing. They enjoy attracting attention from their peers and are more likely to hold premium or platinum credit cards. Professionals in Saudi Arabia, who are more likely to use credit cards (84 percent) than debit cards (53 percent), spend almost SR16,000 on average every month on essentials such as household bills (79 percent) in addition to discretionary items such as fine dining (56 percent), and family holidays (44 percent). These professionals put aside and save about SR9,000 per month for spending on discretionary products and services. Professionals aged 18-to-29 spend more on casual dining and new cars compared with older age groups. Professionals in Saudi Arabia are also frequent users of social networks and online media, with over 67 percent of respondents indicating that they use social networking sites. About 75 percent of KSA professionals use chatting apps and 64 percent visit video streaming websites. Credit cards are the top source of funds for online payments and are mainly used while purchasing electronics and appliances (51%), and fashion and beauty products (46%). The majority of professionals in Saudi shop online, with eCommerce spending largely limited to fashion, clothing, electronics and appliances. Younger professionals, aged between of 18-to-29, are more likely to use bank accounts to fund digital payment services, while older counterparts are more likely to use direct debit. About 80 percent of professionals in Saudi said debit cards are a more convenient source of funds than credit cards since they help limit the amount of money available in the mobile wallet. Nearly 75 percent of professionals in Saudi travel for leisure, usually in groups of 3-to-4, and more than half (56%) of them book their air tickets directly from the airline’s website. Meanwhile, about 40 percent of professionals book tickets through traditional travel agents and only 4 percent use online travel agencies or ticket comparison websites. “For professionals, the quality of their accommodation is an important factor in the whole travel experience. Visa understands these needs and has created a variety of benefits to drive cross-border travel, including partnering with global hotel chains like Jumeirah, and the Visa Explore app that offers cardholders personalized travel deals, dining, entertainment, shopping and other privileges. We are committed to enabling our customers to enjoy an assortment of experiences that can make each holiday that much more memorable,” said Gaber.