The quarterly questionnaire, issued by the Dubai Economy, showed that the percentage of companies expecting an improvement in the business situation for the first quarter of this year rose to 60%, compared to 58% in the previous quarter, where participants see that the Expo 2020 Dubai exhibition, and the expected increase In the numbers of tourists, they are the main factors in increasing economic activity.

The survey, whose results were published yesterday, indicated that companies in Dubai also viewed the Expo with optimism to enhance their credibility and relationships with international companies, which provides more opportunities for growth and exports, as exporters seem a little more optimistic than the general business community in Dubai, The Composite Business Confidence Index recorded 128.8 points and 125.6 points, respectively.

According to the survey, among the 70% of the participants who expressed their expectations about "Expo 2020 Dubai", 56% expect an increase in commercial activity, while 20% expect an improvement in working conditions and the market in general, while 14% expect an increase in visitor activity , While 7% said they expected an increase in construction.

the sales

Projections for the volume of sales showed an annual increase, as the net balance increased from 47% for the first quarter of last year to 53% for the first quarter of 2020, as companies expect an improvement in economic and trade conditions and seasonal demand.

Thanks to the stronger forecasts of sales volumes, the level of optimism about achieving profits increased, as 62% of companies expect to record an increase in their net profits for the first quarter of this year, compared to 54% for the first quarter of 2019.

recruitment

There was an improvement in employment intentions, on the basis of quarterly comparisons, to meet the expected increase in demand, with the net balance increasing from 14% in the last quarter of last year to 16% in the first quarter of 2020, as an increase in net balance was recorded for levels Wages in contrast, from 7% in the last quarter of 2019 to 18% in the first quarter of this year.

The industrial sector was most confident about its business prospects in a number of criteria, including wage levels, sales revenue, sales volume, profits and employment, compared to the services and trade sectors.

On the trade sector level, food, beverages and textiles were the most optimistic activities for the coming quarter.

Services

In the services sector, tourism activities (hotels, restaurants, travel and rental cars), along with transportation, were optimistic about sales volumes, with an expected improvement in market conditions for the next quarter.

The composite business confidence index for exporters showed an annual increase of 3.7 points and 10 points, to 128.8 points in the last quarter of last year, compared to 125.1 points for the last quarter of 2018 and 118.8 points for the third quarter of last year, respectively.

Overcome challenges

Deputy Director General of Dubai Economy, Ali Ibrahim, said that the general feeling shows companies in Dubai continuing their efforts to help them overcome challenges and achieve the optimal use of available opportunities to attract more customers and access new markets.

Ibrahim added that “(Dubai Industrial Strategy 2030) has contributed to revitalizing the local industrial sector and diversifying exports from Dubai.” He pointed out that “those responsible for local companies believe that (Expo 2020 Dubai) provides them with an unprecedented opportunity to achieve more spread around the world.” .

Small businesses are more optimistic

SMEs showed stronger expectations, compared to large companies, where the Composite Business Confidence Index recorded 127 and 124.8 points, respectively, indicating that these companies are more confident about their business prospects in relation to a number of criteria, including wage levels and selling prices Sales volumes and profits, new orders, production and employment, compared to large companies.

During the next 12 months, 30% of companies plan to expand their headquarters, add new products or services, and open new branches inside or outside the emirate. Manufacturing firms were most optimistic about plans to expand their capabilities, followed by service companies and trading companies.

High demand before the «Exhibition»

Most exporters expressed optimism about the high demand and attract additional customers, and the launch of new projects before the "Expo 2020 Dubai", while others mentioned that they put plans to export to new markets in the future, where 8% of companies indicated to develop the necessary plans to export new products.

• The percentage of companies expecting an improvement in the commercial situation will rise to 60% in the first quarter.

• Companies in Dubai are optimistic about "Expo" to enhance their credibility and relationships.