Expo investments spur business sentiment in Dubai

According to the quarterly business survey of the Department of Economic Development (DED), the composite Business Confidence Index (BCI) of companies has increased by 4.9 points in the third quarter of 2016 to 122.4 points. That is compared to 117.5 points in the previous quarter. Domestic investments, increasing as a result of the Expo 2020, together with tourism and retail continued to keep business sentiments up in Dubai. Firms across Dubai maintained a buoyant growth forecast for the final quarter of 2016. The number of businesses forecasting improvement in the fourth quarter has also risen from 44 percent to 50 % according to the survey. This optimism comes from expected new customer orders and increased seasonal demand at the end of the year. It also revealed that there has been a decline from 12% to 10% in those expecting a deterioration. Small and medium organisations kept a more steady outlook with the larger companies accounting for the majority of positivity. Manufacturers are the most optimistic about profits, employment and revenues with the service sector showing weaker sentiments, although hotels and restaurants maintain a high level of positivity with a net balance of 64% for volume of sales, mainly due to projected seasonal demands. Traders showed the softest outlook for selling prices and hiring, but the construction and computer sub-segments have the strongest forecast about volumes for Q4 2016. 79% of companies intend to maintain the same amount of staff for Q4 2016 while 15% plan to hire.