Dubai’s GDP to sustain growth target

Dubai, Feb 5, 2013 (WAM) - The economy of Dubai looks set to sustain its growth momentum with investor confidence on the return and increasing activity across core sectors such as trade, tourism, manufacturing and even real estate as reflected in the overall business sentiment in the emirate. The composite Business Confidence Index for Dubai reached 135.9 points in the last quarter of 2012, a 10.8 per cent increase compared to the previous quarter and a two per cent growth from the same quarter of 2011. Optimism was evident as 94 per cent of the businesses that participated in the quarterly business survey, conducted by the Department of Economic Development (DED) in Dubai during October-December 2012, said they expected either higher or stable sales in 2013. Brighter business outlook has also boosted hiring prospects as 27 per cent of the businesses revealed plans to increase their workforce in the first quarter of 2013 while 71 per cent reported they would retain their current head count. “The prevailing business sentiment in Dubai is strong evidence that economic growth in the emirate is steady and heading towards sustainability. Rising confidence in critical economic sectors and strengthening macroeconomic fundamentals are stimulating business and employment prospects in Dubai,” commented Sami Al Qamzi, Director General of the Department of Economic Development. The survey shows businesses across various sectors as buoyant on sales volumes, revenues and profits. While 66 per cent of the companies foresee improved sales revenue and 61 per cent predict higher profits during the first quarter of 2013, 82 per cent expect prices to remain stable, indicating that the increased revenue would come from a rise in real business activity. Among key sectors, expectations are the highest among trading firms, followed by services and manufacturing firms. The rising optimism is on account of the anticipated demand during the Dubai Shopping Festival and hopes of getting new orders or projects. Sixty per cent of the companies also plan to increase their purchase orders in Q1 2013 to meet the rising demand. Two-thirds of the companies in construction await new projects in the local as well as regional markets or expect to restart stalled projects. The rebound in construction-related activity is also reflected in manufacturing as cement and glass manufacturers are more optimistic. - Emirates News Agency, WAM