Dubai Economy's Business Confidence Index shows that the services sector is driving the increase
Businesses in Dubai are more upbeat about the final quarter of 2017 compared to the previous quarter, driven by increased demand during the winter months, according to a new survey.
The quarterly survey of Dubai Economy showed the composite Business Confidence Index (BCI) in the third quarter increasing by 10.8 points, reaching 121.4 points.
Large companies are more optimistic than the small and medium enterprises with respect to the business outlook, with Composite BCI scores of 126.5 points and 113.8 points respectively, Dubai Economy said.
The services sector is most optimistic regarding its outlook for volumes for Q4, followed by the manufacturing sector, it added.
Exporters are less bullish than the overall business community, with composite BCI scores of 111.8 and 121.4 points respectively.
The survey also showed that the proportion of firms that anticipate an improvement in the business environment stands at 48 percent for Q4 compared to 39 percent for Q3.
Dubai Economy cited the structural reforms and economic diversification in Dubai along with a strong forecast from the International Monetary Fund (IMF) for fuelling business confidence. The IMF has forecast the UAE’s GDP to grow 3.5 percent in 2018, largely on the back of improved non-oil sector growth and stronger external demand.
The survey showed projections for sales revenues are stronger both on a quarterly and annual basis. Half of the respondents anticipate higher volumes during Q4, bolstered by expectations of higher demand, more customers and new projects.
The survey for the third quarter use a sample of 502 companies across Dubai.For all the latest retail news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.