Business Confidence In Dubai Continues To Rise, Survey Shows

The latest business confidence survey conducted by the Department of Economic Development (DED) shows that economic conditions during the first quarter of 2018 (January-March) have improved over the same quarter of last year, and also over Q4 2017. The Composite Business Confidence Index has improved by 5.5 points after registering 116.7 points in Q1 2018 as compared to 111.2 points during the same quarter of 2017. Furthermore, the outlook for Q2 2018 appears to be even more promising as businesses are anticipating better outcomes on revenues, sales volumes, profits and new orders.

The brighter global economic prospects, coupled with strengthening oil prices and improvement in global trade are supplementing Dubai’s continued investment in infrastructure, diversification, and economic transformation to a knowledge-based economy. These developments have translated into better returns on investment and are contributing to an expected pickup in growth from 2.8% in 2017 in real terms to an anticipated 3.5% in 2018.

Looking ahead, the continued drive to meet Expo 2020 infrastructure needs, the easing of the fiscal adjustment in the Emirate, and the recent announcements by His Highness Sheikh Mohammed Bin Rashid Al Maktoum, UAE Vice President and Prime Minister and Ruler of Dubai, of a freeze in government fees for the next three years, and new measures to boost investment and cut cost of doing business are all adding to the upbeat business sentiments.

Emirate-wide, the outlooks across all the indicators have improved. For example, sentiments on sales revenues have increased from 26% for Q1 2018 to 37% in Q2 2018, and 35% of respondents expect higher sales volumes, up from 22% for Q1 2018.