The business community in Dubai has been notably more positive on the first quarter of 2014 than last year. Buoyancy is particularly high among manufacturing and services firms, according to the survey performed by the Department of Economic Development.
New projects expected as a result of Expo 2020 are driving positive discernment. Following on from the previous quarter large corporations continue to have a tougher outlook compared to small and medium firms. Large companies are more confident than SMEs on all the limitations listed in the survey.
From a sectoral point of view, confidence with respect to selling prices, volumes and new purchase orders is the highest within the manufacturing sector, while optimism on hiring plans and net profits is the highest among service firms.
Selling prices are largely expected to be stable with 73% of the respondents expecting no change while 7% expect a refuse due to stiff rivalry in the marketplace as well as the effect of recurrent recession connected with the second quarter.
The manufacturing sector keeps its lead with respect to expectations in terms of volumes sold, with 69% firms expecting a growth in sales volumes in the next quarter.
Within the services sector, architecture, firms in the construction and real estate sub-segment are tremendously certain with respect to volumes of sales in the second quarter of 2014. Meanwhile, prospects are subdued in the hotels and restaurants segment, primarily due to the impact of summer on tourist inflows and affairs.
Transportation firms maintain a strong outlook, with 65% looking forward to better volumes emphasized by a growing population, escalating construction activity, growing trade (exports and imports) and a successful economy. Within the food and beverage, trading sector, building & construction, electronics and auto spare parts firms are particularly optimistic due to new contracts expected in the coming quarter.