The survey, conducted by the Department of Economic Development, demonstrated that the expansion of international trade and the strengthening of oil prices contribute to the growth of business confidence in Dubai. The conditions for the economy in Dubai improved in the first quarter of 2018, compared with the same period last year, especially at the end of the year.
The index of business confidence improved by 5.5 points in January-March of this year and amounted to 116.7 points, while in the same period last year it was estimated at 111.2 points. In the second quarter of 2018 companies expect an increase in profits, revenues, trade volumes and the amount of new orders.
A survey among businessmen showed that business spirits in the region still remain “generally positive.” More than half say they will “probably” invest the next 12 months.
The growing global economic prospects, together with the strengthening of oil prices and improved international trade activity, complement Dubai’s investment in infrastructure and diversification of the economy. All this led to a better return on investment. It is also expected that its growth, amounting to 2.8% in 2017, will increase to 3.5% this year.
Representatives of the World Bank noted that by the end of the decade, the UAE’s economic growth will be 3.3%, while in 2017 it was 2.2%. It is projected that the possible cancellation of OPEC’s requirements for a reduction in production after 2018, a moderate increase in oil prices, an increase in oil production capacity, and stabilization plans and reforms will have a positive impact on economic recovery.
It’s worth noting the tourism sector. The strength of the UAE brand is also mainly due to the high level of development of the tourism industry of the emirate and the brilliant prospects for its growth in the nearest future. Success of the UAE in the modernization of tourism infrastructure, was achieved also due to the construction of a variety of cultural and entertainment facilities, in particular, theme parks and museums.
So, the desire of meeting the infrastructure needs for the Expo 2020, recent statements about freezing of government duties for the next 3 years, as well as new measures to attract investment and reduce the cost of doing business, also contribute to the growth of positive spirits in the business community .
Competition is one of the most difficult aspects for companies in Dubai. This was stated by 19% of respondents. 68% of respondents are preparing for the modernization of technology.
Among the three main sectors that are optimistic, are -industrial, service and trading. The latter feels the best, making forecasts for revenues and sales. Manufacturing sector is most optimistic in terms of profit expectations, and the service sector expects high results from the point of view of the level of value in selling and hiring.