Dubai business confidence index picks up in second quarter

A key government measure of Dubai business confidence rose during the second quarter amid a pickup in demand.

The composite Business Confidence Index of Dubai rose 7.4 points to 117.5 points during the second quarter compared to the same period a year earlier. The measure also rose from the first quarter, when the index had a reading of 116.5, the Department of Economic Development (DED) said.

“Expectations of acquiring new projects/orders, improvement in market conditions, higher demand due to the festival season and new customers have had a significant impact on the overall business outlook in Dubai,” the DED said.

The survey found that 44 per cent of the 500 respondents expected business conditions to improve and expressed optimism on sales and volumes generally. Some 48 per cent of those surveyed said they expected their sales volume to increase in the third quarter, while 37 per cent are forecasting volumes to hold steady.

Competition, market conditions, delayed payments and rental costs were among the main challenges cited by most businesses.

The government’s take on business confidence chimes with independent surveys of business confidence and productivity.

Private sector business activity in Dubai grew last month to its highest level in almost a year, according to data gathered by Emirates NBD. The Dubai bank’s Dubai Economy Tracker Index, which monitors a number of non-oil private sector indicators, ticked up in June to 54.6, marking four consecutive months of expansion.

A jump in new orders and a pickup in the tourism sector meant the latest expansion of private sector output helped to improve sentiment in Dubai, the bank said.

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