Dubai’s business climate is poised for growth in the first quarter of 2024, according to the Dubai Chambers Quarterly Business Survey. The survey, which gathered responses from 507 CEOs and managers of Dubai-based companies, revealed a positive year-on-year increase in the Business Climate Index, rising from 144 points to 168 points for Q1 2024. This surge reflects growing confidence and optimism regarding Dubai’s economic outlook and the appealing opportunities available for investors and businesses.
Key findings from the survey indicate that 63% of participants anticipate further development in Dubai’s business climate during the first three months of 2024. Moreover, 60% of respondents expect an increase in their company’s sales compared to the previous quarter, while 29% predict sales to remain stable.
Mohammad Ali Rashed Lootah, President and CEO of Dubai Chambers, emphasized the importance of fostering growth across all economic sectors and enhancing Dubai’s favorable business environment. By creating conducive conditions for growth, the private sector’s confidence in Dubai’s ability to generate sustainable investment opportunities is strengthened, ensuring the emirate remains at the forefront of the global business landscape.
The survey also revealed that 41% of respondents have plans to expand into new markets at regional and global levels in Q1 2024. Gulf Cooperation Council (GCC) countries topped the list of target markets, followed by India, the UK, the US, Egypt, and South Africa. In contrast, 59% of participants do not plan to expand during this period, with 25% focusing on local market expansion.
Regarding sales growth and cost management, the survey indicated that 57% of respondents plan to diversify their products or services during Q1 2024, and 47% aim to increase production capacity. In addition, 44% of participants plan to allocate larger budgets for digital advertising, while 42% are in the process of securing additional capital.
To leverage digital advancements, 38% of respondents confirmed applying digital technologies in their businesses during Q4 2023. This trend was influenced by factors such as easing access to new markets, reducing costs, enhancing competitiveness, developing new products, and ensuring compliance with regulations. Notably, participants planning to leverage digital technologies in Q1 2024 are focusing on digital payment solutions, digital marketing, e-commerce, and artificial intelligence.
The survey provides valuable insights into Dubai’s flourishing business climate and the determination of companies to grow and expand. With a positive outlook for the first quarter of 2024, Dubai’s economic landscape remains attractive for both local and international businesses.
