Businesses in Dubai have optimistic expectations for sales in 2014 and admit they are planning to expand and increase their new purchase orders. Manufacturing companies are more positive when it comes to sales, while service firms are more optimistic about hiring in the first quarter of 2014.
The data comes from the quarterly Business Confidence Survey, conducted by the Department of Economic Development (DED). It measured the opinions and outlooks from 502 companies in Dubai from October to December, 2013. The results show that 97 percent of all businesses expect either an increase or no change in sales volumes for the next quarter. 63 percent of the companies are expecting better business conditions for 2014 and 64 percent say they are not seeing any challenges to stand against their operations and hold them back. Overall, the Business Confidence Index is rising slowly, but steadily – in Q4 of 2013 it was 144.3, up 8.4 points from the same period of 2013 and higher than the result of 141.6 points for Q4 in 2012.
The leading sentiments of optimism and stability are also reflected in the firms’ prospects for hiring. Approximately 39 percent of all companies in Dubai expect to hire employees in the first quarter of 2014. Compared to the last year, this is also an increase. Service and manufacturing firms were more optimistic about hiring than trading firms. Architecture and real estate firms are reporting rising optimism, which is a result from the steadily recovering real estate sector. The new projects, planned and launched especially after Dubai won the bid to host Expo 2020 are also improving the outlook. 88 percent of hotels and restaurants are also expecting higher visitor numbers and positive outcomes. The transportation sector sees increased optimism, with 64 percent of companies expecting more contracts for the coming year.
Most of the firms (64 percent) consider Dubai as a place where business is easily managed, with no major challenges for operating and expansion. However, the other 56 percent say the biggest challenge will be local and international competition. Rocketing rentals and leasing rates, government regulations, and various fees are also considered difficulties.
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