Dubai's economy revealed that companies operating in the emirate faced several challenges during the second quarter of this year, including competition, insufficient demand, and market conditions, while many companies confirmed that they intend to expand their headquarters in Dubai, in the next 12 months.
In detail, the Dubai Economic Department said that it conducted a survey during the second quarter of this year on a sample of companies operating in the emirate, amounting to more than 500 companies, representing all sectors and economic activities.
The study showed that delayed payments were a challenge for the companies in the study, while other challenges were competition and insufficient demand, as well as market conditions and increased operating expenses, in addition to the impact of oil prices, the cost of raw materials and currency fluctuations and restrictions on financing.
The study showed that 35% of companies operating in Dubai, they faced the challenge of delayed payments, while 62% of companies indicated that they faced the challenge of competition, while 55% of companies considered that they faced the challenge of insufficient demand, while 17% of Companies face market conditions as a major challenge.
In addition, the study said that 12% of the companies surveyed confirmed that they intend to open new branches inside and outside the UAE, next year, indicating that 64% of companies intend to open new branches inside Dubai, while the remaining companies intend to open branches in Other emirates and outside the state.
The companies involved in the study are still less optimistic about their plans to invest in capacity expansion on an annual basis, but stressed that in the next 12 months, 30% of companies plan to expand their current headquarters in Dubai.
62%
Of companies in Dubai, faced strong competition, during the second quarter of 2019.