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Dubai: Business confidence in the Gulf has dipped with businesspeople complaining about inflation, the fourth quarter 2007 HSBC Gulf Business Confidence Index shows.
HSBC said the majority of businesspeople (59 per cent) in the Gulf expect authorities in their countries to revalue their currencies, which are pegged to the US dollar. A significant number, about 47 per cent, were in favour of a revaluation.
HSBC conducted the survey along with polling organisation YouGov Siraj. It polled 1,082 respondents.
In compiling the Business Confidence Index, HSBC made a statistical comparison of responses using data collected over the previous quarters. The first quarter of 2007 was used as the benchmark with a score of 100 for all countries.
"Business remains optimistic, but less so than at any time in 2007. The index has fallen from 100 to 97.8 over the course of 2007," HSBC said in a statement.
But HSBC was quick to allay pessimism, saying "absolute confidence levels remain high. Looking at the year as a whole, confidence levels among Gulf business have shown a consistent level, which are higher than in many parts of the world," said Antoine Cahuzac, chief executive officer of HSBC Global Banking in the Middle East.
A majority of business-people (66 per cent) are still expecting a revenue growth in the next three months. But the number is lesser compared with 71 per cent at the start of 2007.
The number of business-people expecting to maintain their margins in the next three months dropped from 58 per cent in the first quarter of 2007 to 52 per cent in the last quarter.
Among the countries surveyed, Bahrain emerged as the least confident in the fourth quarter, scoring 92. Qatar emerged as the most confident state in the Gulf, with an index score of 112. HSBC said Qatar was the only state that had shown confidence growth over the year.
The results of the study echoed the sentiments of some UAE businessmen who are still bullish about their business despite pressing economic issues.
"The investment climate in the broader Middle East and North Africa region, and in the UAE in particular, is very positive at the moment," Dr Ahmad Samerai, Shuaa Capital economic adviser, said.
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