Realty rates, inflation trouble UAE businesses

Dubai, Mar 27: High property rents, inflation and a shortage of qualified job applicants are among the difficulties being faced by businesses in the UAE, according to a GCC-wide survey.

The escalating cost of real estate was seen as having a negative business impact by 47 per cent of respondents in the Gulf Cooperation Council (GCC), while 36 per cent saw a downside in the rising cost of raw materials to their business, the survey conducted by HSBC through YouGov Siraj pollster showed.

Inflation was seen as a threat by 48 per cent of businesses, although there were sharp differences between countries, Gulf News reported.

While 55 per cent of the UAE business was worried about inflation, it was 28 per cent among Saudi businesses.

Hiring people is also perceived to be a challenge, with 35 per cent of managers sharing a negative outlook on keeping up with their staff requirements.

Top executives from 962 companies in the UAE, Saudi Arabia, Bahrain, Kuwait, Oman and Qatar were interviewed for the first of the quarterly poll.

Almost one in four expects corporate profits to rise by more than 15 per cent and 54 per cent cite an expanding market as being the prime driver of business growth.

However, a majority of companies surveyed in the United Arab Emirates were optimistic about profit and revenue growth.

UNI