Dubai Department of Economic Development survey found that the trading sector is particularly optimistic about Q2 2017
Business confidence in Dubai has risen over the first quarter of 2018 and Q4 2017 as local businesses anticipate better revenues, sales volumes, orders and profits, according to a survey conducted by the Department of Economic Development (DED).
According to DED, the entity’s composite business index improved by 5.5 points after registering 116.7 points in Q1 2018, compared to 111.2 points in Q4 2017. The survey for Q1 2018 was conducted taking a sample of 502 companies across Dubai and they were asked to indicate if they anticipated an ‘increase’, ‘decrease’ or ‘no change’ on key outlook indicators, including sales revenues, selling prices, volumes sold, profits and number of employees.
In the survey, DED noted that improving global economic prospects and improving oil prices, coupled with Dubai’s investments in infrastructure, diversification and economic transformation are expected to lead to an uptick in growth from 2.8 percent in 2017 to 3.5 percent in 2018.
Across Dubai, outlooks across all the survey’s various indicators were found to have improved. Sentiments on sales revenues, for example, rose from 26 percent in Q1 2018 to 37 percent in Q2 2018, with 35 percent of respondents noting that they expect higher sales volumes, up from 22 percent for Q1 2018.
Of the sectors analysed, trade appears to be the most confidence about their business prospects in terms of revenues, selling prices, profits and new purchase orders, while the services sector is the most optimistic about hiring expectations.
In the trading, auto traders were found to be particularly optimistic about the prospects of higher sales volumes during Q2 2018.
Half of the survey’s respondents said they expected business conditions to improve in Q2 2018, compared to 41 percent the previous quarter.
While 40 percent of respondents said that they expect more stable conditions, the survey also indicated that 49 percent of the respondents do not expect any negative factors to impact their business operations.
Additionally, 71 percent of respondents said they were upbeat about capacity expansion plans, compared to 69 percent in Q4 2017 and 61 percent in Q1 2017.