Dubai’s business environment is expected to see move forward in the third quarter of 2021, as confidence among companies and investors improves prior to Expo 2020 Dubai, a newly released survey from the Dubai Chamber has found.

The Business Leaders’ Outlook for Q3-2021 reports that 66 percent of respondents said they expect to see better business conditions during the third quarter, compared to 51 percent who said the same in the second quarter. At the same time, 66 percent of business leaders surveyed were more optimistic about the business environment, compared to 48 percent in the second quarter.

Expectations among business leaders due to factors affecting business conditions in Q3-2021 have improved significantly across the board, compared to Q2-2021, with the most notable improvements seen in the financial transactions category.

Some 57 percent of business leaders said they expect a recovery in oil prices to positively affect the business environment in the third quarter, while 62 percent of business leaders said continuing global restrictions on trade and travel would be a risk impacting business conditions in the emirate.

The results marked the highest readings of the survey since the final quarter of 2014. The increase in confidence is due to several factors, such as the pro-active approach of the government, growing domestic demand, economic stimulus initiatives and progress of vaccination drives being the key factors behind positive attitudes among business leaders.

The survey found that SMEs, in particular, were more optimistic about Dubai’s economy in the short term, compared to large companies serving regional and global markets, while debt collection, late payments, strong competition in prices and the high cost of raw materials were identified as key challenges and risks that could potentially impact the economic situation.

Commenting on the survey, Hamad Buamim, President and CEO of Dubai Chamber, said the findings demonstrate Dubai’s success in minimising the impact of the COVID-19 pandemic through a series of policies, initiatives and measures that have ensured a favourable business environment and addressed new challenges created by the pandemic. He noted that Expo 2020 Dubai is expected to fast track Dubai’s economic recovery and boost the emirate’s appeal among foreign companies and investors.