Date
5/19/2013 2:04:41 AM
(MENAFN- Khaleej Times) A majority of businesses, especially small and medium enterprises (SMEs), in Dubai expects higher growth in revenues and profits for the second quarter of the year, a latest survey revealed on Saturday.
The quarterly business confidence survey, conducted by the Department of Economic Development (DED), revealed robust expectations by Dubai business community.
While optimism runs across the whole economy, it is particularly high among SMEs and exporting firms as reflected in the composite Business Confidence Index (BCI), which stood at 113 points during March quarter of 2013.
The survey showed that 86 per cent of the businesses are upbeat on sales and profits and 98 per cent plan either to increase (23 per cent) or maintain (75) their employment count during the next quarter. Overall business expectations are on an upward trend with 91 per cent of firms reporting either improvement or stability in business conditions in second quarter of 2013.
"Economic activity in Dubai is on a firmer ground, especially with key sectors such as tourism, logistics and aviation flourishing and real estate on a recovery path. The services and retail sectors are also signalling strong growth, which reaffirms Dubai's reputation as a resilient and vibrant economy," DED director-general Sami Al Qamzi commented on the survey.
During the recently concluded Arabian Travel Market (ATM), this scribe talked to several Dubai-based hospitality and aviation related companies. All expressed their confidence in Dubai and bullishness for the whole year of 2013. Almost all top executives of the companies, Khaleej Times had a chance to talk, mentioned that they expected higher revenues and will continue to expand during the year.
Flydubai chief executive officer Ghaith Al Ghaith said the airline will continue to expand and expect higher revenues this year. "We have announced to open more than 10 new routes during the year and that will attract more revenues compared to last year," Al Ghaith said.
The DED's latest survey reveals robust expectations, with 55 per cent of businesses expecting higher sales revenues and another 30 per cent stable sales in second quarter. The revenue growth will continue to be driven by rising real business activity, as 80 per cent of respondents expect prices to remain largely stable.
With respect to sales volumes, 54 per cent forecast an increase during Q2 and as a result, 49 per cent of the firms are also planning to increase their purchase orders to ensure adequate stocks to meet the expected demand. In terms of sectors, manufacturing businesses are most optimistic about sales and profits whereas service firms are most upbeat about new hires.
Within the trading sector, auto trading, computers, food and textile firms are relatively more optimistic.
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