Businesses in Dubai are largely optimistic about the coming months due to expected stronger sales and revenues due to new projects, according to new survey statistics from Dubai’s Department of Economic Development (DED).
According to the statistics, more than 8 percent of businesses expect stronger or stable results throughout the rest of the year.
On a sector-by-sector basis, the most confident sector was found to be the services sector, followed by the manufacturing sector, in which 66 percent of firms said they were more optimistic about their plans to expand capacity, compared to 65 percent of services firms and 60 percent of trading companies.
Overall, the DED’s Business Confidence Index (BCI) rose to 118.5 points in Q3, up from 112.7 points in Q2 2018. The least optimistic sector was the trading sector.
Projects for sales revenues in Q4 were largely found to be higher than in Q3, with the net balance up from 33 percent to 42 percent.
Additionally, a seasonal rise in demand has resulted in stronger outlook for volumes, with the net balance rising from 29 percent in Q3 to 34 percent in Q4. Of the respondents, 46 percent said they anticipate higher volumes during the fourth quarter bolstered by higher demand and new customers and projects. Another 42 percent said they expect stable conditions.
More than half – 52 percent – of firms said they expect a general improvement in Dubai’s business environment in the fourth quarter and 39 percent expect stable results.
Another 43 percent of the survey respondents noted that they don’t anticipate any obstacles to their business operations during Q4.
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