30 August 2016
Muscat - The significant improvement in oil prices in the second quarter of 2016 has bolstered economic confidence among business leaders in the GCC countries, according to a survey.

YPO, which represents a global community of business leaders, recently announced that business confidence in the Middle East and North Africa (MENA) remained relatively stable in the second quarter of 2016, while improving significantly in oil-exporting GCC countries.

The YPO Global Pulse Confidence Index for the GCC increased 4.9 points to 57.1 in the second quarter of this year from 52.2 in the first quarter.

The survey said the rebound in oil prices in the second quarter contributed to bolstering confidence among YPO members in the GCC. Among GCC countries, Saudi Arabia's jump in confidence was the most significant, rising 8.7 points to 62.2. In the UAE, the index increased 5.4 points during second quarter to 54.8.

The confidence index for the MENA region as a whole edged up just 0.3 point from 55.6 in the first quarter of 2016 to 55.9 in the second quarter, halting a steady decline in the previous six consecutive quarters.

When regional business leaders were asked about their expectations of the overall business and economic conditions affecting their companies six months from now, 20 per cent anticipated conditions to worsen, compared with 34 per cent from the previous quarter, indicating a cautious sense of optimism in the short term. Nearly 47 per cent SAID conditions to remain the same, up from 35 per cent.

When looking ahead 12 months, YPO said 59 per cent business leaders were optimistic that sales would increase.

Despite the significant improvement in confidence within the GCC, business confidence in MENA remains below the worldwide index. For the second quarter of 2016, the YPO Global Pulse Index rose 1.4 points to 59.7, its highest level in a year.

© Muscat Daily 2016