Dubai: Dubai commercial traders’ expectations about the market rose to 6.5 points on a scale of one to 10 in 2014 showing positive outlook for the year ahead, according to a survey released on Tuesday.
Conducted by the Dubai Chamber of Commerce and Industry, the survey attributed the market’s positive gains to economic reforms, which include upgrading legal infrastructure across most government entities, and growing economic stability.
Compared to 2013, Dubai traders’ expectations grew 0.5 points in 2014 from 6.0 points, according to the survey.
The survey focused on top traders of machinery, industry services, vehicles and household goods, while large trader, by employment rate, had the highest expectations.
Sixty per cent of traders expected market demand to be at very good/good, comparing to only six per cent of traders who expect market demand to be poor/very poor, with greater expectations for industrial activities, according to the survey.
As demand is on increase, expectations for sales are also generally positive as 51 per cent of traders expecting sales to increase due to hosting Expo 2020.
Hamad Bu Amim, president and CEO of Dubai Chamber, said that the factors contributing to the traders’ expectations for the year are based on economic stability, market maturity and improved liquidity and the continued development of infrastructure and launches of more initiative and projects by the government.
Irfan Al Hassani, a UAE-based economist, said that trade is the primary commercial practice in the UAE’s long history.
“Today, Dubai is a global re-export hub and I expected trade business to keep growing with the current maturity in the market.”
Traders highlighted that government should cut down the processing time and cost of visa issuances, reduce the fees of government services, reduce the cost of utilities, speed up and lower the cost of port services, enhancing the businesses’ financial support, upgrade real estate regulations as well as provide reliable and timely market information.
“Government should go on with economic reforms putting an eye on the legal and logistic infrastructure which insure stable growth across the trade sector,” Al Hassani said.