- Increase in the Level of Business Confidence in Dubai in 2018

Increase in the Level of Business Confidence in Dubai in 2018

Increase in the Level of Business Confidence in Dubai

The Department of Economic Development of the Emirate of Dubai conducted a survey among business representatives on the level of business confidence. According to the results of the study, they noted the growth of positive sentiments in the region (in first half of 2018, compared to the same period of 2017), and also highlighted the factors that contributed to this: positive dynamics in the growth of prices for petroleum products and the increase in the volume of international trade. According to the report of the Department of Economic Development, entrepreneurs noted the improvement in the conditions for economic development.

Moreover, the second half of this year is considered to be even more promising – business expects an increase in trade volumes, growth in profits and revenues, as well as new contracts and orders. Over the period from January to March, the Business Confidence Index has grown by 5.5 points.

Rising prices for oil products, good economic prospects, increased international trade, investments of local authorities in innovative sectors of the economy and the country's infrastructure are the main positive factors that increase the confidence of business in the near future. The return on investment is expected to rise from 2.8% (in 2017) to 3.5% (this year).

In addition, there are a number of factors that strengthen the optimism of local business: the development of infrastructure before Expo 2020 show, the statement of the local government that taxes will not be raised within the next three years, as well as additional measures aimed at attracting new investments.