Hisham Farouk, Managing Partner of Grant Thornton discusses business optimism in the UAE following on from the International Business Report (IBR).
Optimism has remained relatively consistent with Q1 2013 and has ranged from 88% to 86%. Revenue expectations have increased along with export expectations, which highlight a positive trend for the region. The IBR also highlighted that the UAE government is extremely supportive of business diversification and that UAE based businesses predominately would want to diversify into the technology and hospitality and leisure industries.
The IBR also highlighted that the percentage of businesses investing in research and development has increased from 18% in Q1 to 32%. This could see the emergence of new products and services and promote diversification within the market, as research and development will promote innovation and therefore support in increasing revenue if researched, developed and implemented effectively.
Hisham Farouk, Managing Partner of Grant Thornton UAE commented, “current trends in the United Arab Emirates makes this a great region for investment and opportunity. With the IBR highlighting increases in import, export and research and development, it further supports the ambitious plans within the UAE. The UAE has increased international presence; which truly supports it being seen as the central MENA business hub for the world.
The IBR highlights a positive increase in optimism for the USA in stark contrast to a slight decrease in one of the BRIC economies, China. However, change in business environment coupled with new regulation can alter businesses in relation to optimism. We believe that with actionable advice, coupled with reason and instinct, dynamic businesses can remain optimist even through challenging times.”