Dubai businesses predict improved sales and export-related activity

Wednesday, May 09, 2012

Gulf News

Dubai Businesses across Dubai remain upbeat over growth and revenues with expectations riding high especially in the manufacturing sector, a survey conducted by the Department of Economic Development (DED) showed.

The composite Business Confidence Index (BCI) for Dubai, according to the survey, stood at 120.5 points in the first quarter, indicating an optimistic outlook for the next quarter. BCI crossing 100 points indicates a positive sentiment within the business community.

“A majority of businesses in Dubai foresee sales increasing or remaining steady and plan to retain their employee count through to the second quarter,” it said.

“The survey also reveals an even brighter outlook among export-related businesses, rising confidence among small and medium enterprises [SMEs] and a stronger investment focus on upgrading technology.”

Continuing a trend in the last few quarters, sales are forecast to increase in the next quarter. However, some companies intend to raise prices in line with the cost of raw materials across global markets. Higher sales revenues are predicted by 50 per cent of companies while 35 per cent see no change compared to the first quarter. Profit expectations are also positive, with 44 per cent of respondents expecting an increase in the next quarter.

Sami Al Qamzi, director-general of DED, said: “For a businessman or investor planning his next step, it is important to know what his peers think.”

Staff Report