Business confidence continues rising in third quarter

This is the highest score since October 2008. On almost all measures, the region's businesses see better times ahead: on turnover, profit margins, and meeting their targets for the year, there is a marked increase in optimism since the first quarter of this year.

The quarterly index is the most comprehensive measure of business opinion in the region. The third quarter survey covered 1641 business people in all six countries of the GCC.

Highlights from the survey:

· 34% predict a growth in revenue in the next three months, up from 29% in the second quarter
· 30% foresee an increase in profit, with only 13% predicting that profits will fall in the rest of 2009.
· 26% predict higher investment levels, compared to 22% in Q2
· Only 16% expect to see their workforce shrink in the next year, compared to 25% who report job losses in the past 12 months.
· 54% say they expect business to improve overall, compared to 42% in Q1 this year.

"The mood of optimism in the region has increased steadily since its low-point at the start of the year," said Simon Vaughan Johnson, Regional Head of Commercial Banking, HSBC Middle East.

The results support a poll of UAE trading companies conducted earlier, also by HSBC, which showed the UAE is one of the top three most confident countries in the world on trade activity and growth.

"All the indicators are pointing in the same direction, and these indicators echo the sentiments of our clients, who tell us that the feeling is that the worst of the slowdown is behind us, but it is too early to declare victory over the global economic recession,"

added Vaughan Johnson.