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B usiness Optimism Index Qatar Q1 2009. Presented by Dun & Bradstreet Qatar Financial Centre (QFC) Authority Al Khalij Commercial Bank (al khaliji). Business Optimism Index. The D&B Business Optimism Index is recognized world over as a measures of the pulse of the business community
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Business Optimism Index Qatar Q1 2009 Presented by Dun & BradstreetQatar Financial Centre (QFC) Authority Al Khalij Commercial Bank (al khaliji)
Business Optimism Index • The D&B Business Optimism Index is recognized world over as a measures of the pulse of the business community • Expectation survey among 500 business owners and senior executives between 9th Nov and 23rd Nov for the quarter starting Jan 2009 • Respondents questioned on their expectations for relevant business parameters • Also surveyed respondents regarding current business conditions vis-à-vis: impact of global financial crisis, investment plans, primary concerns etc. • Hydrocarbon sector survey conducted separately • Provides insights into the short-term outlook of the business community on investment, sales, profit growth etc • Analysis of major trends, outlook and issues concerning the business community
Business sentiments still healthy • Drop from last quarter; Outlook still positive • Robust Sales and New Orders expectations • Sharp drop in Selling Price Index
Growth momentum intact Volume of Sales New Orders • Demand levels expected to remain firm • Trading and Manufacturing units expect a strong quarter ahead • Sentiments in Finance and Real Estate sector hit by liquidity concerns
Profitability expectations modest % • Trade, Transport & Hotels sector most upbeat • Positive sentiments in the Manufacturing and Real Estate sector • Financial enterprises treading cautiously
Cautious about costs New Employees Level of stock • New employment creation expected to pace down • Most new jobs in Trade, Transport and Hotels sector • Inventories expected to stay at last quarter levels
Downward pressure on prices • Significant drop in Selling Price Index across sectors • Majority keep their selling prices at last quarter levels
Oil and Gas Sector • Energy Sector sentiments nosedive • Bleak Selling Price and Profits outlook • No new employment generation in the sector
Will global financial crisis Affect business? Oil and Gas Sector Non Hydrocarbon Sector • Global spread of the financial crisis hits confidence • Energy sector impacted most • One third of the non hydrocarbon economy feels pinched too
Holding back new Investments Cost of Capital Investment Plans • Divided outlook for the cost of capital • 49% units plan no Investments in the next quarter • Trade, Transport and Hotels sector continues to expand operations
Business Concerns Non Hydrocarbon Sector Oil and Gas Sector • Escalation in costs considered a major roadblock • Drop in global oil prices poses a serious concern for the oil and gas sector • Market volatility and competition cited as other business concerns
Outlook for Q1 2009 • Global Recession poses challenges to the Economy • Businesses expect to withstand the crisis with govt. support • Moderate growth in demand and profitability levels • Business units cautious regarding new commitment in light of market uncertainties • Inflationary pressures to ease