Confidence among Dubai businesses reached its highest level in 10 years, fuelled by improved business activity with the beginning of the world’s largest event Expo 2020, according to a survey released by the Dubai Chamber of Commerce and Industry on Sunday.
The survey results revealed that 76 per cent of companies noted improved business confidence in the fourth quarter of 2021 compared to 66 per cent in the third quarter.
While 78 per cent of businesses hope that Expo 2020 to benefit their businesses in the coming months.
The six-month-long mega event will attract millions of visitors within and outside the UAE, leading to increased spending in the country. World Bank also projected faster real GDP growth of 4.6 per cent for the UAE for 2022 on the back of increased tourist inflow during the mega exhibition.
Hamad Buamim, president and CEO of Dubai Chamber, said that trade, tourism, hospitality and logistics are the sectors that are expected to see the most business activity during Expo 2020 Dubai.
Economists also expect that the emirate’s GDP will grow faster in late 2021 and 2022 due to Expo 2020.
The Dubai Chamber survey revealed that 83 per cent of Dubai businesses expect an improvement in business conditions in Q4 2021 compared to 66 per cent in the previous quarter.
Dubai businesses identified global supply chain restrictions and rise in commodity prices as key challenges for them.
Buamim said growing optimism in the business community and promising economic prospects are being created by Expo 2020 Dubai.
He said increased government support for the private sector, success in overcoming Covid-related challenges, new business incentives, easing travel restrictions and higher oil prices are among the other key factors that contributed to the positive outlook.