Dubai, July 11, 2021 (WAM) – Dubai’s business environment is expected to improve in the third quarter of 2021 as business and investor confidence improves over Expo 2020 Dubai, according to a recent study by the Dubai House.
According to an outlook of business leaders for the Q3-2021 survey, 66% of respondents said they expect business conditions to improve in the third quarter, up from 51% in the second quarter. At the same time, 66% of surveyed business leaders are more optimistic about the business environment, up from 48% in the second quarter.
Business leaders’ expectations for factors affecting business conditions in the third quarter of 2021 have improved significantly compared to the second quarter of 2021, with the most significant improvements in the financial transactions segment.
57% of business leaders expect a recovery in oil prices in the third quarter to have a positive impact on the business environment, while 62% of business leaders say global restrictions following trade and travel pose a risk to business conditions.
The results represent the highest readings of the survey since the last quarter of 2014. The increase in confidence is due to a number of factors such as the effective approach of the government, the growth of domestic demand, the economic recovery of initiatives and the progress of vaccination campaigns. Positive Attitudes of Business Leaders.
The study found that SMEs, in particular, are more optimistic about Dubai’s economy in the short term compared to large companies serving regional and global markets, while identifying debt collection, late repayments, strong price competition and high prices of raw materials could have an impact on the economic climate. Key Challenges and Risks.
Commenting on the investigation, Hamad Bhuwamim, President and CEO of the Dubai Palace, said: Face the new challenges created by the business environment and epidemic. He noted that Expo 2020 Dubai will accelerate Dubai’s economic recovery and increase the UAE’s appeal to foreign businesses and investors.
Translated by: Kihane Pawsi.