Survey: Executives In The UAE Backs Increased Infrastructure To Boost Business Confidence
According to a survey from the Association of Chartered Certified Accountants and Institute of Management Accountants, business executives in the UAE are backing increased infrastructure spending to benefit the economy over the next year.
The survey showed that overall economic confidence in the country increased during the fourth quarter of 2018, compared to the previous three months.
Speaking about the survey, Lindsay Degouve de Nuncques, head of ACCA Middle East, said increased spending on infrastructure projects, including for the World Expo in 2020, will underpin growth.
In contrast, global economic confidence fell for the third consecutive quarter in Q4 2018. According to a global poll of 3,800 accountants, all key economies in the world witnessed a decline in confidence score, with signs of growth decreasing in the three major economies in the world - the US, China, and the Eurozone.
The global poll showed that 47 percent of business executives said they are considering laying off staff to manage rising costs, while another 39 percent of respondents said they are considering scaling back investment in new capital projects. Only 16 percent of respondents said they are looking to increase investment in new projects.
Implications for Businesses
The survey showed that the increase in business confidence is stimulated by the country's increased infrastructural expenditure and we are expecting to see an acceleration in government spending on infrastructure as the country prepares for EXPO 2020.
Infrastructural expenditure plays a huge role in driving economic growth and with government planning to allocate 5 percent of its capital projects to SMEs, we are optimistic that the local economy will witness a significant boost.
With that said, starting your own business can be quite a challenge even with a suitable entrepreneurial environment. If you are looking to starting a business in Dubai or any part of the UAE, we can help take care of your business setup plans. Feel free to get in touch with us today.