Business leaders are the most optimistic they have been since 2014 according to new research carried out by the Dubai Chamber. Close to 66 percent of respondents voiced that they expect Dubai business conditions to improve in the third quarter of 2021, according to the new Dubai Chamber survey for quarter three 2021 – the
Business leaders are the most optimistic they have been since 2014 according to new research carried out by the Dubai Chamber. Close to 66 percent of respondents voiced that they expect Dubai business conditions to improve in the third quarter of 2021, according to the new Dubai Chamber survey for quarter three 2021 – the highest survey readings since the fourth quarter of 2014.
Moreover, 66 percent of business leaders included in the survey concurred that they were more optimistic about the business climate in the third quarter. These percentages surpass those of the preceding quarter’s survey, where only 51percent of respondents and 48 percent of business leaders said they expected an improvement in Dubai business conditions.
This growing confidence among corporations and investors comes as a result of Dubai’s pro-active approach in its vaccination efforts, growing domestic demand, economic stimulus initiatives and more.
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Additionally, the nearing start date of Expo 2020 Dubai holds the promise of an economic boost for the emirate.
Business leaders’ expectations for factors affecting Dubai business conditions, namely the financial transactions category, have seen significant improvement in Q3-2021 in comparison to Q2-2021.
However, 62 percent of business leaders voiced their concern that international restrictions on trade and travel could negatively affect Dubai business conditions during the third quarter.
The UAE has languished on the UK’s red list since January 29, meaning that all UK arrivals must quarantine in a costly government-mandated hotel for ten days.
At the same time, approximately 57 percent of business leaders said they anticipate that a recovery in oil prices will have a positive effect on the business environment during Q3.
The survey findings suggested that SMEs were more optimistic about Dubai’s third-quarter economy than large companies that serve both regional and global markets.
H.E. Hamad Buamim, President and CEO of Dubai Chamber
Debt collection, strong competition in prices, late payments and the high cost of raw materials were all pinpointed as key challenges facing Dubai’s current economic state.
President and CEO of Dubai Chamber, H.E. Hamad Buamim, said that the survey’s results exhibit Dubai’s success in combatting the Covid-19 pandemic via policy and initiatives that have protected a favourable business environment for the emirate.
He also mentioned that Expo 2020 Dubai is anticipated to further bolster Dubai’s recovering economy.
An IHS Markit report in May indicated that business activity in Dubai rose to the highest level since late 2019 after a rebound in tourism and a fast distribution of coronavirus vaccines.
The private sector, excluding oil, grew for a fifth-straight month in April, according to IHS Markit. Its Purchasing Managers’ Index for the Middle East’s main business hub rose to 53.5 from 51 in March, staying above the 50-mark that separates growth from contraction and signaling significant economic expansion.