8,000 new firms join Dubai Chamber in H1

Dubai / WAM

This year, Dubai maintained its attractiveness to global investors as in the first half of 2016, over 8,000 new companies joined the membership of Dubai Chamber of Commerce and Industry bringing its total membership to 193,000 with a 4.3% growth. This new addition takes the non-profit business organisation membership closer to 200,000 while enhancing the Chamber’s reputation as one of the largest chambers of commerce in the world.
According to a report on its half-year activities, while the Chamber’s membership maintained a pace of sustained growth, its members’ total exports and re-exports reached AED 138 billion with Saudi Arabia ranking as the top-most destination with members’ exports and re-exports in the region valued at AED 44 billion.
Also, the Chamber registered a growth of 2% in the issuance of certificates of origin in the first half of this year totalling more than 478,000, compared to 469,000 COOs issued during the same period last year.
Hamad Buamim, President and CEO, Dubai Chamber, stated that Dubai’s economy has once again showed its resilience in facing the adversities of global economic challenges while sustaining its trade sector which has time and again proved its competitiveness on a global level.
“The emirate’s capability in reducing the effects of the global economic slowdown comes from its competence based on the economic diversity and the UAE’s strategy to move away from oil resources which actually complements the vision of the country’s wise leadership in creating a competitive economic order,” Buamim said.
The President and CEO of Dubai Chamber further added that the Chamber’s future strategies are based on the wise vision of His
Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, as the Chamber is implementing innovative initiatives to strengthen Dubai’s position as an attractive global business destination.
He also said that the Chamber is putting the finishing touches to this year’s launch of its new strategy for 2016-2021 in line with the Dubai Plan 2021, to enhance the emirate’s lucrative business environment and the competitiveness of its businesses in the overseas markets.
Buamim lauded the Chamber’s efforts exerted in the past months to promote its members’ presence in the emerging markets of the world by opening international offices, while launching smart services and innovation strategies as well as organising several important global economic conferences and forums which he said contribute to increasing the competitiveness of Dubai businesses in the overseas markets while also boosting the strength of companies operating in Dubai.
He also said that the Chamber has issued 125 ATA Carnets for the temporary import of goods during the first half of this year, adding that this service demonstrates the emirate’s leadership in facilitating global trade, while supporting MICE (meetings, incentives, conferences and exhibitions) sector in Dubai, especially with Dubai recently maintaining its 14th position among the world’s top destinations for business events affirmed by the Union of International Associations (UIA) in its international meetings statistics.
Buamim added that in the first half of this year Dubai Chamber as part of its efforts to stimulate private sector growth in the emirate, received 308 international delegations from 67 countries totalling over 519 government officials and businessmen, while the Chamber’s five international offices held 202 meetings with potential investors.
In light of the rising importance of settling commercial disputes amicably in the emirate, Dubai Chamber received a total of 516 arbitration and mediation cases in the first half of the year.
The organisation’s initiative Dubai International Arbitration Centre (DIAC), received 115 arbitration cases in comparison to the 97 cases received during the same period last year, while Dubai Chamber’s Legal Services department received 401 mediation cases compared to 301 received in the same period last year.
As part of its commitment to create a favourable business environment and to support business growth, Dubai Chamber studied, reviewed and followed up on 26 federal and local legislations and draft laws, while sending its recommendations to the Government of Dubai Department of Legal Affairs and to the concerned authorities, notably the draft federal law regulating the mining activities and the protection of mineral resources in the UAE, a draft federal law on financial leasing contracts, draft by-law on environmental protection and development, cabinet resolution regulating the use of coal as a solid fuel, draft law concerning civil establishments in the emirate of Dubai, and the draft unified law and its by-laws for food safety for GCC countries.
Dubai Chamber, while endeavouring to move towards smart services and to provide the highest quality of customer service under the ongoing strategy to attract larger foreign investments to Dubai while promoting the emirate as a major global destination for trade and finance, served 194,000 customers particularly as the organisation won the top spot for Customer Happiness at the Dubai Government Excellence Program award ceremony held this year in the emirate.
In the first half of this year, Dubai Chamber opened its new international office in the Mozambican capital, Maputo, bringing the number to 5 international offices, as all these offices held 202 meetings and nine events with companies and investors looking to enter the Dubai market or access for Dubai businesses to the markets where these offices operate from.
The Dubai Association Centre (DAC), granted 23 licences for the establishment of global professional associations in the emirate. The Centre’s aim is to highlight Dubai’s position as a strategic hub of trade and finance supported by a stimulating investment environment and modern infrastructural facilities for global associations to make their base in the region.

Seasonal demand,
expected projects lead to brighter business outlook

Dubai / WAM

Expectations of acquiring new projects/orders, improvement in market conditions, higher demand due to the festival season and new customers have had a significant impact on the overall business outlook in Dubai, as shown in the quarterly business survey conducted by the Department of Economic Development (DED).
The composite Business Confidence Index (BCI) of Dubai firms rose to 117.5 points during the second quarter, up 7.4 points from the same quarter of 2015 and also higher than the Q1 2016 index score of 116.5.
Businesses generally were optimistic on sales and volumes as 44% of those surveyed expected the situation to improve, against 39% in the first quarter on 2016, and another 44% expecting stability to prevail. While 48% of the businesses in Dubai expect their sales volume to increase in the third quarter of 2016, 37% anticipate volumes to hold steady.
A comparison of the forecast for Q3 2016 versus that for Q2 2016 shows that all parameters, except the selling prices index, have maintained a steady trend. The net balance for selling prices has increased from 1% for Q2 2016 to 5% for Q3 2016 on the back of rising raw material costs and projections of improvement in demand. The net balance for sales volume stands at 33% for Q3 2016, higher than the 27% for Q3 2015 and 31% for Q2.
In line with the emirate’s growing profile as a manufacturing hub and source market for finished products, the manufacturing sector was the most optimistic across all parameters – revenues, volumes, selling prices, employment, profitability as well as new purchase orders for the third quarter of 2016.