Dubai's Business Environment To See Positive Momentum In The Third Quarter Of 2021, According To Dubai Chamber Survey
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Dubai’s business environment is expected to see positive momentum in the third quarter of 2021, as confidence among companies and investors improves ahead of Expo 2020 Dubai, a newly released survey from Dubai Chamber has predicted.
The Business Leaders’ Outlook for Q3-2021 found that 66% of respondents said they expect to see better business conditions during the quarter, compared to 51% who said the same in the previous quarter. At the same time, 66% of business leaders surveyed were more optimistic about the business environment, compared to 48% in the second quarter.
H.E. Hamad Buamim, President and CEO of Dubai Chamber, said the findings demonstrate Dubai’s success in minimizing the impact of the COVID-19 pandemic through a series of policies, initiatives, and measures that have ensured a favorable business environment and addressed new challenges created by the pandemic. He also noted that Expo 2020 Dubai is expected to fast track Dubai’s economic recovery and boost the Emirate’s appeal among foreign companies and investors.
The survey found that business leaders’ expectations for factors affecting business conditions in Q3-2021 have improved significantly across the board compared to Q2-2021, with the most notable improvements seen in the “financial transactions” category. Around 57% of business leaders said they expect a recovery in oil prices to positively affect the business environment in the third quarter, while 62% of business leaders said global restrictions on trade and travel would be a risk impacting business conditions in the Emirate.
The survey also found that SMEs, in particular, were more optimistic about Dubai’s economy in the short term compared to large companies serving regional and global markets, while debt collection, late payments, strong competition in prices and the high cost of raw materials were identified as key challenges and risks that could potentially impact the economic situation.
The results marked the highest readings of the survey since the last quarter of 2014. The increase in confidence is due to several important factors such as pro-active approach of government, growing domestic demand, economic stimulus initiatives, progress of vaccination drive, and others.