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21 April 2024

Business Climate Index rising for Q1 2024 reflects optimism about Dubai’s economic prospects

Published
By E247

The Dubai Chambers Quarterly Business Survey has revealed positive year-over-year growth in the Business Climate Index, which rose to 168 points for Q1 2024, up from 144 points during the same period last year. The increase reflects growing confidence and optimism regarding Dubai’s economic outlook and the promising opportunities the emirate offers for investors and companies.

The survey, which gathered the opinions of 507 CEOs and managers of companies operating in Dubai, indicates that 63% of participants anticipate development within the emirate’s business climate during the first three months of 2024. 60% of respondents expect their companies' sales to increase during Q1 2024 compared with 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 results of the survey, His Excellency Mohammad Ali Rashed Lootah, President and CEO of Dubai Chambers, said: “The findings of the survey underline the importance of efforts to accelerate the pace of growth across all economic sectors and further enhance the emirate’s favourable business environment. Creating conditions that are conducive to growth strengthens the private sector’s 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 at both regional and global levels during Q1 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 results of the survey showed that 57% of respondents plan to diversify their products or services during Q1 2024, while 47% aim to increase production capacity. A total of 44% of respondents plan to increase their digital advertising budgets, and 42% indicated that they are in the process of obtaining additional capital.

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

Leveraging Digital Advances
On the digital front, 38% of the respondents confirmed that they had applied digital technologies in their businesses during Q4 2023. Factors influencing this trend included easing access to new markets (52%), reducing costs (49%), enhancing competitiveness (44%), developing new products (26%), and ensuring compliance with new regulations (22%).

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