Dubai witnessed a significant rebound in business confidence during Q4 2024, supported by sustained economic momentum, improved performance of small and medium enterprises (SMEs), and positive employment expectations tied to rising customer demand and business expansion.
According to a business sentiment survey in the emirate, the composite Business Confidence Index rose to 125.5 points, up from 110.7 in Q3—an increase of 14.8 points. SMEs outperformed large enterprises, registering a confidence score of 127 points.
Throughout the year, SME sentiment fluctuated, reaching a peak of 140.6 points in Q1, dipping to 116.8 in Q3, and then rebounding in Q4, signaling a renewed sense of optimism. Exporters also showed increased confidence, with the index rising to 114.2 points, up from 105.9 the previous quarter.
Service sector companies were the most optimistic, with a score of 128.5 points, followed by trade (128 points) and industry (122 points).
The survey found that 70% of businesses expect selling prices to remain stable, while 24% anticipate price increases due to inflation and higher operating costs. Additionally, 75% of companies plan to maintain their current workforce, and 20% intend to hire more staff to meet rising demand and support growth plans.
Meanwhile, 47% of surveyed companies reported higher sales driven by strong demand and effective marketing strategies, and 21% expanded their workforce in response to business growth.
Source: Albayan Newspaper