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Sat 21 Sep 2019 12:13 AM

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New export markets, Expo 2020 boost Dubai business confidence in Q2

Dubai Economy's Business Confidence Index improves to 114.9 points in the second quarter of 2019

New export markets, Expo 2020 boost Dubai business confidence in Q2
As Dubai promotes itself as a competitive source market, 22 percent of the firms said they are looking to export to new markets during Q3, with Africa and Europe targeted.

New export markets and projects being launched ahead of Expo 2020 are energising economic activity in Dubai, particularly in the trading and construction sectors, according to a new survey.

The quarterly survey of Dubai Economy shows Composite Business Confidence Index (BCI) in the emirate improving 2.2 points to reach 114.9 in the second quarter of 2019, with respondents anticipating higher volumes and profits.

The survey also showed that 83 percent of businesses in Dubai rated their situation as ‘good’ or ‘stable’ in Q2 while challenges such as weak demand during the Ramadan season and increasing competition were voiced.

The proportion of businesses foreseeing an improvement in the business situation has slightly increased from 45 percent for Q3 2018 to 46 percent for Q3 2019, while 43 percent expect stability to prevail.

The survey showed tha large companies continue to maintain stronger projections compared to SMEs with BCI scores of 118.3 and 109.9 points for Q3 respectively.

As Dubai promotes itself as a competitive source market, 22 percent of the firms said they are looking to export to new markets during Q3, with Africa and Europe targeted.

Khalid Al Kassim, assistant director general for Economic Affairs in Dubai Economy, said: “Businesses in Dubai have been able to remain competitive and aim for the next level as a series of measures adopted by the government continue to enhance ease of business and create new economic opportunities.”

A comparison of expectations among key economic sectors reveals that the trading sector holds the strongest outlook for sales revenue, volumes sold, profits, hiring and new purchase orders.

Projections for volumes has displayed a year-on-year increase, with the net balance rising to 31 percent for Q3, supported by optimism surrounding the Expo 2020 as well as expectations of additional customers, new projects and improved market conditions.

For the upcoming quarter, while 79 percent of respondents intend to maintain their selling prices at the current level, 10 percent plan to increase prices.

Hiring intentions have softened on a quarterly basis, the survey added.