DUBAI (Zawya Dow Jones)--U.A.E. consumer confidence is slowly returning with almost half of consumers surveyed expecting the country to emerge from the current downturn in the next 12 months, according to an international survey released Monday.

A total of 87% of consumers questioned in the Nielsen Global Consumer Confidence Index survey said they believed they are in an economic recession, 45% are confident the country will emerge from it in the next year, a 13% hike from the company's last survey in March.

Consumer confidence levels in the country, meanwhile, rose to 93 index points after reaching a record low of 89 in March, Nielsen said.

"This is a major turning point for the U.A.E.," Piyush Mathur, Nielsen's regional managing director for the Middle East, North Africa and Pakistan said in an emailed statement.

"Consumer confidence reached a record low in March but, three months later, U.A.E. consumers are starting to embrace the idea of recovery," he said.

The U.A.E. now ranks as the seventh most optimistic country surveyed, Nielsen said.

Despite the rise in confidence, U.A.E. consumers remain concerned about job security and the economy with many changing their spending habits accordingly.

Of those questioned in the survey of 14,029 online consumers in 28 countries in June, 34% of consumers said job security was their top concern, followed by the state of the economy at 17%.

"They are still controlling discretionary spends, especially on out-of-home entertainment, telephone expenses and vacations and taking short breaks," said Mathur.

Globally, consumer confidence rose five points to 82, from 77 points in March this year. India had the highest jump, at 13 index points higher than in March. Japan, South Korea, Hong Kong and Indonesia rose 9 points, while Taiwan and Brazil rose 8 index points from the last survey. The U.S. and New Zealand's consumer confidence levels were flat, while Germany dropped one index point, Nielsen said.

By Stefania Bianchi, Dow Jones Newswires; +971 4 3644967; stefania.bianchi@dowjones.com

Copyright (c) 2009 Dow Jones & Co.

(END) Dow Jones Newswires

11-08-09 0410GMT