Dubai: Private sector organisations in Dubai could start expanding and hiring people during the third quarter, a report said.
Performance of business sectors in Dubai was stable in the second quarter of 2011, while the outlook for the third quarter remains positive, the Department of Economic Development in Dubai (DED) said.
A DED survey, which polled 500 on-shore and free zone companies across Dubai, took into account overall business performance and future outlook based on key indicators such as sales, revenues, wholesale and retail prices, volumes, profits, and number of employees.
It illustrated that sales revenues were stable in the second quarter compared with the first, while there is a strong positive expectation of more recruitment and expansion in Dubai.
The survey also revealed that companies in the manufacturing and services industries are planning to increase their workforce in 2011, while trading companies intend to maintain the same level of employment as the first quarter.
"The perceptions of the business community provide the most realistic assessment of the prevailing business outlook and climate," said Sami Al Qamzi, Director General of DED.
"Dubai's status as a competitive business hub is set to grow stronger judging by the positive findings of this survey."
Mohammad Al Asoomi, a UAE economist, said he was satisfied with the results, adding that he was optimistic about growth in trade sector, the main driver of economy, in the third quarter of this year. "Dubai is witnessing a remarkable economic performance in the financial, commercial and tourism [sectors]," he said.
"The political tension in the region, the increase in local demand as well as the hike in prices will soar with trade volume and value and maintain Dubai as an ideal business hub."
He remarked that as long as oil price is above $100 [367.31] per barrel, economic growth in the UAE would continue.
Irfan Al Hassani, a UAE-based economic expert, agreed.
"I am very optimistic about business performance in Dubai in the next coming months," he said.
"The economic cycle of the UAE in general is getting back to normal, as well as the latest encouraging business results in Dubai is quiet useful to bring confidence back to the market and it could be the dynamic engine for business to go ahead ."
Al Hasani stressed the importance of adequate representation for small and medium-sized enterprises (SMEs) in Dubai, which have vital role in capturing new businesses.
But Jitendra Gianchandani, Chairman and Managing Partner of Jitendra Consulting Group, told Gulf News that it was too early to talk about economic and business growth for Q3 of 2011 given the slow pace of Q1.
"The challenges we faced in the last few years [remain]," he said.
The survey found that small and medium enterprises (SMEs) and export -oriented firms have recorded stability in sales revenue in the current quarter.
