ABU DHABI, Feb. 4, 2015 (GLOBE NEWSWIRE / Knowledgebylanes) — Business confidence in the United Arab Emirates declined significantly in the fourth quarter of 2014. The YPO Global Pulse Confidence Index for the UAE fell 10.5 points to 61.8, its lowest level since January 2013, as the dramatic decline in oil prices contributed to a more cautious outlook among business leaders.
For the first time since April 2011, CEOs in the United Arab Emirates were less optimistic about short-term business and economic prospects than their counterparts across the region. The YPO Global Pulse Confidence Index for the Middle East and North Africa dropped 3.4 points to 62.4 but still recorded the second-highest level in the world, trailing only the United States.
“The sharp drop in oil prices is clearly impacting the business and economic outlook in the UAE,” said Ali Tabbara, managing director of UTC International and chair of YPO‘s Middle East and North Africa region. “At the same time, CEO confidence remains firmly in optimistic territory, thanks to the diversity of the UAE economy and Expo 2020-related spending, which should help the country weather the reduction in oil revenues.”
CEOs in UAE were split in their views on whether conditions would improve in the first half of 2015. Just under half (45%) of those surveyed expected better conditions six months hence, compared with 30% who predicted a less favourable economic environment. A quarter (25%) expected conditions to remain about the same.
Elsewhere in the region, the YPO Global Pulse composite index for the Gulf Cooperation Council (GCC) member states plunged 8.1 points to 62.4 in January as crude oil prices fell below US$50 for the first time in almost six years.
YPO Global Pulse Confidence Index
The quarterly electronic survey, conducted in the first two weeks of January, gathered answers from 2,790 chief executive officers across the globe, including 123 in the Middle East and North Africa region. Visit www.ypo.org/globalpulse for more information about the survey methodology and results from around the world. A more detailed version of this release may be found at www.ypo.org/news-media/press-releases/.
YPO (Young Presidents’ Organization) is a not-for-profit, global network of young chief executives connected through the shared mission of becoming Better Leaders Through Education and Idea ExchangeTM. Founded in 1950, YPO today provides 22,000 peers and their families in more than 125 countries with access to unique experiences, extraordinary educational resources, access to alliances with leading institutions, and participation in specialised networks to support their business, community and personal leadership. Altogether, YPO member-run companies employ more than 15 million people around the world and generate US$6 trillion in annual revenues. For more information, visit www.ypo.org.
This is an unofficial translation of the original release. The release in its original language is the only official, authoritative version.
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