Business confidence in Dubai surged during the third quarter, while a stronger performance is expected in the last three months of the year, a survey conducted by the emirate’s Department of Economic Development, or DED, showed Saturday.
The government body’s quarterly Business Confidence Index in Dubai stood at more than 115 points in the third quarter, up from 100 in the previous quarter, DED said in an emailed statement.
“The reading indicates that a stronger performance is widely expected for the last quarter of 2011 and the rise in confidence levels is also reflected in higher sales expected for the rest of the year,” it added.
A representative sample of 500 companies, including small and medium enterprises and export-oriented businesses, were surveyed in order to gauge perceptions and the future outlook among entrepreneurs and investors in Dubai.
DED said nearly 57% of the respondents in the survey anticipated higher revenues during the fourth quarter, while 30% see stable sales figures. Better profits are foreseen by 44%, while another 39% see third quarter profits remaining stable.
The majority of the firms spoke of enhancing their procurement, indicating that the revenue boost would come from higher volumes rather than prices, the DED said.
“The Business Confidence Index is now a key metric in measuring and monitoring the pulse of business in Dubai. It enables the Department of Economic Development to gauge perceptions among the business community in Dubai and respond effectively to the requirements of doing business in Dubai,” said Sami Al Qamzi, the director general of DED.