Dubai’s businesses reached their highest point of confidence in 10 years, fuelled by the start of Expo 2020, the world’s largest event, according to a survey released on Sunday by the Dubai Chamber of Commerce and Industry.
As a result of the survey, 76 percent of companies reported improved business confidence in the fourth quarter of 2021 compared to 66 percent in the third quarter.
Expo 2020 is expected to benefit 78 percent of businesses in the coming months.
Millions of visitors from within the UAE and outside the nation are expected to attend the mega-event, leading to an increase in UAE spending. According to the World Bank, tourism inflows during the mega exhibition are expected to result in real GDP growth of 4.6 percent for 2022 in the UAE.
During Expo 2020 Dubai, President and CEO of the Dubai Chamber, Hamad Buamim, said the sectors that should have the most business activity are trade, tourism, hospitality, and logistics.
Expo 2020 is also expected to boost the emirate’s GDP in late 2021 and early 2022.
According to the Dubai Chamber survey, 83 percent of Dubai businesses expect an improvement in business conditions in Q4 2021 compared to 66 percent in the previous quarter.
Dubai’s businesses identified global supply chain restrictions and rising commodities prices as key challenges.
According to Buamim, Expo 2020 Dubai is creating optimism in the business community and promising economic prospects.
Additional factors contributing to the positive outlook include increased government support for the private sector, success in overcoming COVID-related challenges, new business incentives, easing travel restrictions, and higher oil prices.