Business confidence in Abu Dhabi steady during the first quarter

A measure of business confidence in Abu Dhabi recorded a steady reading during the first quarter, reflecting modest optimism, according to a report from the Abu Dhabi Department of Economic Development (Added).

The measure had a reading of 52.12 during the first three months of the year, led by gains in services and commercial activity. The sector that did not perform as well was construction, which fell below its so-called level of neutrality.

While the report said that efforts had been made to improve the fortunes of small and medium-sized enterprises (SMEs), it said more could be done to reduce the pain of the rising cost of raw materials, rent increases and the difficulty in getting financing.

“Although entities are exerting efforts to enhance the non-oil sector’s performance in the Abu Dhabi economy, particularly small and medium enterprises, it still requires initiatives to lessen the effect of some factors such as the hiking prices of raw materials and rents, and to facilitate the required financing from banks,” said the report from Added.

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