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Tue 25 Jul 2017 02:13 PM

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Most Dubai bosses 'positive' about Q3 business prospects

New survey reveals only 18% of company chiefs expect business conditions, confidence to weaken

Most Dubai bosses 'positive' about Q3 business prospects

Business leaders in Dubai are more positive about their expectations of business conditions and business confidence in the third quarter of 2017, according to a new survey.

The poll conducted by the Dubai Chamber of Commerce and Industry revealed that 39 percent of respondents expect to see business conditions improve in Q3.

Around 43 percent of surveyed business leaders expected no change in business conditions, while 18 percent expected conditions to worsen over the same period.

The survey also showed that 45 percent of business leaders expected business confidence to strengthen in the third quarter of this year, compared to the 37% who predicted no change and 18 percent who expected confidence to weaken during the quarter.

Expectations for access to financing, manpower quality, and access to facilities and infrastructure all saw quarter-on-quarter improvements in Q3, the survey showed.

The easing of visa restrictions on Indian, Chinese and Russian tourists was seen by 57 percent of respondents as having a positive impact on overall business confidence.

The survey found that small and medium-sized enterprises (SMEs) were more optimistic than large companies in their expectations about business confidence and business conditions in Dubai during Q3.

Around 49 percent of SME respondents said they expected business conditions to improve in the third quarter of this year, compared to 25 percent of large companies. In addition, 49 percent of SMEs expected business confidence to strengthen in third quarter, compared to 38 percent of respondents from large companies.

Hamad Buamim, president and CEO of Dubai Chamber, said the growing confidence came in line with an increase in the number of new companies joining Dubai Chamber in the third quarter, which is an indicator of business activity in the emirate.

Price competition, debt collection, payment defaults, and high employment costs were cited as the key limiting factors impacting businesses’ Q3 operations, in addition to the high costs of capital, bank services, and raw materials.

Surveyed business leaders identified high commercial rents and licensing fees, as key challenges for which government action is needed.

They also called for more government support on regulatory matters such as settling late payments, while they also suggested the introduction of long-term residency visas to reduce the cost of doing business.

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