Ajman businesses upbeat on higher growth

Dubai - The survey showed that 32 per cent of the companies are expecting a rise in sales revenues compared to the same period last year.

A majority of companies in Ajman expects either stability in economic conditions or higher growth rates with the construction sector sounding most upbeat, according to a business confidence index for the first quarter released by the Department of Economic Development in Ajman.
The index, which maintained a stable and optimistic outlook, was based on data collected through a sample survey of companies operating in Ajman.
The index recorded 109 points given the higher growth rates achieved by various sectors of the economy in the first quarter of 2016. The survey showed that 32 per cent of the companies are expecting a rise in sales revenues compared to the same period last year.
The poll showed stable expectations in terms of profitability as 51 per cent of the companies are expecting their profits to continue at the same rate, while 29 per cent are optimistic for an improved business environment.
 Expectations of the business community were assessed through indicators including prices, sales volume, profit and number of employees. "Results were positive as 71 per cent of the companies expect either an increase in sales revenue or the existence of stability with a slight increase in growth rates, which reflected positively on the estimates of the volume of sales during the first quarter of 2016," said the report.
On employment prospects, 31 per cent of the companies surveyed expressed intention to increase the number of employees from the beginning of the first quarter of 2016. The questionnaire highlighted that the construction sector is more optimistic about employment and creation of new jobs.
According to the survey, more than half of the companies (are expecting stabilised earnings ratios during the first quarter of 2016 without changes compared to the previous rates. Results of the business confidence index showed that large companies were more confident and optimistic than small and medium-sized companies about growth and rising rates of profitability.
The survey revealed that expectations of companies for sales volume has grown, whereas exporting companies' expectations were upbeat in the first quarter.
Foreign companies operating in Ajman have expressed optimism about the growth of business with many companies stressing lower operating costs and the friendly legislative environment as the most important attractive factor. - issacjohn@khaleejtimes.com