Business climate index rise in Q1 2024 reflects optimism over Dubai’s economic prospects

He Dubai Chambers Quarterly Business Survey has revealed positive year-on-year growth in the Business climate index, which increased to 168 points by the first quarter of 2024, compared to 144 points during the same period last year. The increase reflects growing confidence and optimism regarding Dubai’s economic prospects and the promising opportunities the emirate offers for investors and businesses.

The survey, which gathered the opinions of 507 CEOs and directors of companies operating in Dubai, indicates that 63% of participants foresee a development in the business climate in the emirate during the first three months of 2024. 60% of Respondents expect their companies’ sales to increase during the first quarter of 2024 compared to the previous quarter, while 29% believe sales will remain at a similar level to those achieved during the fourth quarter of last year.

Commenting on the survey results, His Excellency Mohammad Ali Rashed Lootah, Chairman and CEO of Dubai Chamberssaying:

“The survey results underline the importance of efforts to accelerate the pace of growth in all economic sectors and further improve the emirate’s favorable business environment. Creating conditions conducive to growth strengthens private sector confidence in Dubai’s ability to generate sustainable investment opportunities and ensure the emirate remains at the forefront of the global business landscape.”

International expansion ambitions

The survey revealed that 41% of respondents plan to expand into new markets regionally and globally during the first quarter of 2024. GCC countries topped the list of target markets, followed by India, the United Kingdom, the United States, Egypt and South Africa. . Among the 59% of respondents who do not plan to expand during this period, 25% indicated that they are currently focused on expanding within local markets.

Sales growth and cost management

The survey results showed that 57% of respondents plan to diversify their products or services during the first quarter of 2024, while 47% aim to increase production capacity. A total of 44% of respondents plan to increase their digital advertising budgets, and 42% indicated they are in the process of raising additional capital.

In terms of the most important cost management measures planned during the first quarter of 2024, 43% of respondents intend to review or change their supplier lists, and 41% plan to negotiate the cost of renting their premises or transfer their operations to more affordable locations. spaces.

Taking advantage of digital advances

On the digital front, 38% of respondents confirmed that they had applied digital technologies in their businesses during the fourth quarter of 2023. Factors influencing this trend included facilitating access to new markets (52%), reducing costs (49 %), improve competitiveness (44%), develop new products (26%) and ensure compliance with new regulations (22%).

Top services and areas targeted by participants planning to leverage digital technologies in Q1 2024 include digital payment solutions (24%), digital marketing (21%), e-commerce (17%), and intelligence artificial (12%).

News source: Dubai Press Office