The Q2 2018 General Index for Confidence in Business Climate, is issued by the Department of Economic Development in Abu Dhabi (DED), as a result of the performance of both the current and future status indicators.
This reflects the Index's stability in regards to the establishments assessment of their own status in light of the continued impact that this assessment has been subject to due to the way those establishments view some of the variables that are related to their internal conditions.
According to the Index's results, it is expected that the economic and developmental efforts, led by the government of Abu Dhabi, will help improve the business sector's view of the future prospects of the Emirate's economy. It will also reinforce confidence and optimism among business establishments, which will in turn increase prevalent optimism levels among the consumers in Abu Dhabi, increase demand for goods and services and improve establishments evaluation.
The Index's performance came as a result of the establishments evaluation of several factors related to their internal conditions, such as sales volume, profit and others.
The Future Condition Index, on the other hand, scored 50 points in Q2 of 2018 which indicated the business establishment's anticipation and reservation regarding the economic situations in Q3 of 2018. It is expected that the announcement of several economic and development initiatives and programs by the government, including the stimulus package, Abu Dhabi Accelerated Development Program (Ghadan 21) among others, will have a positive impact on the business sector's perspective and enhance confidence in the future.
According to the economic activity, the results of the General Index for Confidence in Business Climate show variability in the way establishments engaged in various activities view the future of economic conditions during Q3 of 2018. On the other hand, optimism levels reached its highest among establishments engaged in the technology and communication field whereby the Future Condition Index scored 57 points, followed by the constructions and industry activity which both scored 53 points.
In terms of establishment size, the General Index's trends reflected continued optimism among large-sized business establishments during Q2 of 2018.
In addition to that, the levels recorded by the Current Condition Index showed similarity in the way various establishments (large, medium and small) viewed their conditions during Q2 of 2018 which was based on the evaluation of their internal conditions according to a number of factors, particularly production volume, stock size, sales, profit and the workforce.
According to the Q2 2018 survey, the majority of economic establishments reported that there were no obstacles that impacted their business, whereas other establishments located in the Emirate's three region reported, in varying degrees, specific factors that affected their activity, namely rent, taxes, customs charges, licensing fees and service cost.