Abu Dhabi’s Q1 consumer, investor confidence surge

Abu Dhabi’s Department of Economic Development says growth is strong. — KT photo

A massive allocation of Dh330 billion for boosting infrastructure through 2013-17 and other policy initiatives have raised consumer and investor confidence in Abu Dhabi in the first quarter of the year.

A report by the Department of Economic Development Abu Dhabi said development indicators confirmed the ongoing strength of Abu Dhabi is economy with an improvement in all indicators. This included the index of confidence in the business climate, consumer’s confidence in the economic performance, and the index of the business cycle, in addition to the results of the Monitor of the Emirati family condition, the department said.

The report said that the consumer’s confidence on the UAE level has witnessed a remarkable rise in early 2014, where the index of consumer confidence, which is part of the Nelson Global Index reached 114 points, its highest level in the first quarter of 2014.

Abu Dhabi’s economy closed the year 2013 remarkably, showing strong macro and micro economic growth. The report added that the Dh330 billion allocation for development has contributed, along with other measures and actions, in creating a conducive business environment which has encouraged investment sending strong positive messages to business community.

It is reflected positively on the performance of the existing and new businesses creating more jobs, investments, and income opportunities, and this in turn has contributed to high levels of confidence among consumers of individuals and families, which reflected positively on the markets and businesses. The trends of the general index of confidence in the business climate and its sub-indices show a rising in the confidence of businessmen and investors in the business environment and has a positive future outlook.

The trends of the general index of consumer confidence and its sub indicators indicate high levels of optimism among consumers of different nationalities and business sectors. The trends in the general index of the business cycle and its sub-indicators show that the emirate’s economy has witnessed more prosperity as this was reflected clearly on the continued establishment of new business enterprises, and the improvement in the performance of existing institutions in all activities and sectors, in addition to the significant improvement in the performance of the Abu Dhabi stock market.

According to a recent survey, the report said 39 per cent of consumers in the Arab countries see that their economic situation will improve than it is now, and Oman leads the Arab countries by up to 67 per cent followed by the UAE and Qatar by 51 per cent each.

Regarding the consumer’s confidence in the Arab countries, 24 per cent of them see that their economies are better than it was, and the UAE has ranked first by 53 per cent of consumers, also 39 per cent of consumers in the Arab countries see that their economies will be better in the future than they are now, and the proportion reaches its highest 68 per cent in the UAE, followed by Qatar with 63 per cent of respondents.

— haseeb@khaleejtimes.com