Abu Dhabi soars as business buoyancy increases

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The wide-ranging index of confidence in the trade and industry climate in Abu Dhabi enhanced two points annual to 61 points, in the first quarter of 2015.

Abu Dhabi soars as business buoyancy increases

Abu Dhabi soars as business buoyancy increases

Large industrial, commercial, construction and services companies were hopeful and positive on the general index of confidence and recent circumstances index.

Nevertheless, small, medium and large companies were neutral, because of the economic situation appeared after the drop in oil rates and slower economic progress in the Western economies and Greek crisis.

The analysis anticipated that the good economic situations in Abu Dhabi, as manifested in the credit quality classification (+AA) by Standard & Poor’s Agency, boosted confidence in the economy, as credit rating agency, Standard & Poor’s eliminated the influence of the variations in oil prices on enlargement projects.

Abu Dhabi Business Center has lessened the average number of methods for the issuance of commercial licenses and the number of days essential to commence a business by half and the average rate of issuing commercial licenses by 30%. Abu Dhabi is working on finishing the ordinary scheme for the issuance of numerous commercial licenses in Abu Dhabi by 2016. In its endeavors to enhance domestic demand, Abu Dhabi is expending Dh330 billion on infrastructure projects in a five-year period of 2013-2017. This strategy has also assisted enhanced business responses. Abu Dhabi issued 2,452 new commercial licenses from the period of January-March as it kept on a chosen destination for trade.

The companies engaged in different industries proved buoyancy regarding their internal condition and the financial situation overall in the quarter. The outcomes explains an enhancement in the implementation of the trade industry, indicated by the upsurge in the total worth of non-oil commodities business in Abu Dhabi in the last quarter of 2014 by 15.8% annually to Dh39.4 billion. The cost of non-oil exports amplified 12.6% to achieve Dh4.7 billion.

The industrial division’s accomplishment was affected by the drop of rates, as the producer prices index diminished by 8.6% in the fourth quarter of 2014 compared to the third quarter of the similar year.

This happened regardless of the improved performance of the manufacturing sectors, as the Industrial Production Index boosted by 2.2%, whereas in the service market, the tourism industry has considerably amplified, as the total of visitors and room occupancy quantities escalated as well as to the hotels profit in the month of January 2015 compared to the similar month of 2014.

The revenues of banks enhanced together with the real estate division which executed well for the period of January-March.

Mohamed Dekkak

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