Dubai’s business community are more upbeat on the emirate’s economy than they were a year ago, according to the latest business confidence survey released by Department of Economic Development (DED).
The department’s latest quarterly Business Confidence Index (BCI) reached 120.7 points for the second quarter of 2013 – up 14.6 per cent points on the same period last year.
The index has also risen by 6.7 points between the first and second quarters of this year.
According to the results of the latest survey, more than 83 per cent of the businesses in Dubai expect an increase or no change in sales volumes during the third quarter of 2013 and many plan to invest in hiring or technology upgrades.
The department said the latest data showed export firms and larger enterprises in general are more confident on sales volumes, profitability and prices than small and medium-sized enterprises (SMEs).
The survey shows that 43 per cent businesses expect an improvement in their sales revenue in the coming three months while another 40 per cent see stable outcomes.
However, hotels and restaurants are less optimistic on the next quarter due to families leaving on summer holidays and the seasonal nature of tourism. Only around 20 per cent of businesses in the sector expect an increase in volumes while a slightly higher proportion (25 per cent) expect a decrease in their sales volumes.
Optimism among businesses is lending stability to jobs too – as 82 per cent of businesses polled expect ‘no change’ in their workforce in the third quarter while another 16 per cent will increase their headcount – compared to 11 per cent the same period last year.
The Department of Economic Development (DED) conducts the quarterly surveys to measure theperceptions of the business community to “allow the government and the private sector to track and analyse major trends and issues that have a bearing on economic activity in Dubai”.
