The results of Abu Dhabi consumer confidence in economic performance index 2012, prepared by the Studies Directory of the Department of Economic Development, revealed that individuals confidence indicators were on the rise, especially confidence in both current and future economic conditions, individuals financial condition and government policies, compared to, 2011.The general consumer confidence in economic performance index in 2012 registered about 125 points on average compared to 118 points in 2011.The General index which reflected high levels of confidence for most of the year 2012 in contrast with 2011, started gradual improvement at the beginning of the year, scoring 127 points on the 200 point scale, compared to 118 points in January 2011. The index values climbed to 124 points in the last month of 2011 compared to 122 points in December 2011.The rate of change of the general consumer confidence in the economic performance index of the Emirate of Abu Dhabi in 2012, was (5.9%) in comparison to 2011. The financial conditions indicator scored 110 points with (7.8%) rate of change; while the confidence in government policies indicator marked 117 points with (2.6%) rate of change, and the future expectations index 147 points with (5%) rate of change compared to the year 2011.Benchmark results stated that with the beginning of 2012, confidence levels increased among individuals and consumers about the economy of the Emirate of Abu Dhabi in General, especially in the wake of the announced implementation of a large number of infrastructure projects and investments in industry; and the beginning of the recovery of Abu Dhabi Securities market, due to banks and real estate companies positive business results in 2011.The decision of the President, His Highness Shaikh Khalifa bin Zayed Al Nahyan, to pay off debts of citizens, and to increase the number of subsidized commodities, reduced the burden on citizens and contributed significantly to increase their spending.According to the index, all these factors contributed to the return of economic activity to its vitality in the Emirate of Abu Dhabi over the years that followed the global financial crisis, and helped to raise confidence levels for both the businessmen and investors, and buoyed demand for labor. The Emirate witnessed an increase in the number of new licensees across all business and professional activities alike, which reflected positively on confidence levels among individuals and consumers increasing their sense of job security and job opportunities considerably compared with year 2011.The index analysis pointed out that government policies taken to alleviate the suffering of individuals and consumers had contributed significantly to strengthening their sense of improved financial conditions, indicating that the Central Bank have instructed banks to restructure commercial real estate loans to people and lower premiums, stressing at the same time not to force sale of property or unfair terms for rescheduling in mid-2012.The analysis noted the importance of the Central Bank’s decision which required Islamic banks to apply early repayment fees like commercial banks after it was entitled to recover the full amount of the Murabaha financing, even if the customer attempts full repayment before the expiry of the loan.It also commented the actions taken by the Ministry of Economy, Abu Dhabi Department of Economic Development, Abu Dhabi to control commodity prices in the month of Ramadan, which increased optimism among consumers and individuals, as all outlet and sales points were warned against manipulation of selling price or seizing the opportunity of increased consumption during the month of Ramadan, stressing that penalties would be imposed according to the Consumer Protection Law upon any manipulation or violation of the price list specified by the Ministry.During the months of 2012 some declines in scores of the index occurred , and that was due to the fear of individuals and consumers, especially in February and March of a wave hikes in prices of a number of foodstuff commodities, where most of the sellers raised prices of goods such as vegetables, fruits, oils, detergents, soaps and toiletries, as well as some other pet products, however; the indicator returned to its normal path after the Ministry of Economy obligated suppliers and producers to stick to the previous price list installed by the Committee, stating that their request to raise prices, will be pending, subject to approval by the Higher Committee.With regard to financial conditions, the indicator soared this year averaging 110 points in 2012 compared to 102 points on average in 2011.The index did not register any score below neutrality (100) points, during the current year, compared to 2011 which experienced pessimism, in some periods, among individuals and consumers about the financial conditions. During most of 2012 confidence and optimism levels were high compared to levels of optimism shown by individuals and consumers since April 2009.The individuals’ financial condition indicator stood at 140 points on average during the second quarter of this year, the highest score ever in compared to previous periods.The levels of optimism about the future of the financial conditions of individuals and consumers increased, as this indicator marked 170 points on average in 2012, compared to 163 points on average in 2011.Despite the high levels of confidence among individuals about the future, during the current year compared to 2011, However confidence about the future conditions in general was higher, due to the perception of respondents ,their confidence in the economy of the Emirate of Abu Dhabi and in policies taken by decision-makers, in addition to the feeling that Abu Dhabi is a safe haven for investment, as well as impact of achievements and ambitious plans of the Emirate and the strength of its economy, which all make it immune to economic turmoil facing developed countries in particular. This reflects the significant improvement in the score of the indicator concerning confidence in government policies.The confidence in government policies indicator during the current year increased 3 points compared to 2011 registering 117 point on average during 2012, compared to 114 points on average in 2011. This reflected the awareness of all respondents of the considerable efforts made by the government of Abu Dhabi to maintain a dignified life for all individuals and consumers; and Government efforts to accelerate the pace of economic growth for the benefit of all residents.As for future expectations, the index recorded a rise this year compared to the previous year, scoring 147 points on average in 2012 compared to 140 points on average in 2011.The Index results reflected high levels of optimism about future economic conditions, where individuals and consumers expressed their optimistic expectations about the significant improvement in the pace of overall economic performance in 2012, as well as their expectations about the availability of more jobs and improved financial conditions in particular.A quick review of some global indicators of consumer confidence in economic performance revealed that the Nielsen Global Consumer Confidence Index” placed the UAE 3rd globally with regard to the consumer confidence index in the third quarter of last year. The index value increased 6 points compared to the second quarter of the same year, scoring 114 points in the third quarter compared to 108 points in the second quarter of the same year.The UAE is considered as the GCC with the higher score in consumer confidence in the economic performance index, in the third quarter of this year, according to the Nielsen Global Consumer Confidence Index.