Business / #ForbesBusiness

February 11, 2019,   5:04 PM

Most Dubai Businesses Optimistic About Economic Growth In 2019

Mary Sophia

At Forbes Middle East, I write about some of the most successful entrepreneurs and companies that... FULL BIO

dubai city night aerial view

Nearly 59% of businesses based in Dubai are optimistic about growth prospects in the first quarter of 2019, a new study by Department of Economic Development (DED) showed.

The number of businesses which were optimistic regarding economic prospects also grew. In 2018, just 41% said they expected economic growth while 34% said that they expected the economy to be stable.

However, companies have also cited increased competition and payment delays as primary challenges marring their horizons. About 46% of respondents cited competition as a challenge while 34% felt payment delays hindered growth.  

The final quarter of 2018 also saw the composite business confidence index improve both year-on-year and quarter-on-quarter, the study found.

The companies within the manufacturing sector proved to be most confident among all business polled with 52% of them planning to add capacity, compared to 47% of trading firms and 45% of service businesses.

Many businesses within the manufacturing sector are also planning technology upgrades, compared to 35% of services businesses and 27% of trading firms.

The survey also coincides with the launch of Emirates NBD Dubai Economy Tracker Index that keeps track of the emirate’s non-oil growth. The tracker indicated that growth has picked up in Dubai’s non-oil private sector in the month of January while firms showed the highest level of optimism since 2012.  

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