Qatar Q2 business outlook reflects mixed sentiment.
The D&B Business Optimism Index, carried out by Dun &
Bradstreet South Asia Middle East (D&B) in association with Qatar
Financial Centre (QFC) Authority reveals that business optimism levels
for four of the six parameters have edged up modestly, with the BOI
dipping for the remaining two. The BOI for the Volume of Sales parameter
has increased to 41 in Q2, while the BOI for Selling Prices has gone by
up to 7 over the same time period. The BOI for the Number of Employees
parameter has ticked up marginally by 1 point to 20 in Q2. The BOI for
New orders has improved by 6 points from 33 in Q1 to 39 in Q2.
<p>Businesses in Qatar have become more cautious with regard to
holding inventories; the BOI for the Level of Stock parameter has
registered an 8 points drop from 13 in Q1 to 5 in Q2. The BOI for Net
Profits has fallen to 27 from 30 in Q1 suggesting that higher selling
prices and volumes will not offset inflationary impact on the cost
structure. <p>The D&B survey reveals that 37 per cent of the
respondents expect borrowing conditions to improve during Q2.
Availability of finance is edging lower as a business concern; it was a
leading concern for 35 per cent of the respondents in Q1 and this number
has dropped to 30 per cent in Q2. Raw material costs are the most
important business concern in Q2 for 45 per cent of the non-hydrocarbon
respondents. <p>Shashank Srivastava, Acting CEO of the Qatar
Financial Center Authority said "after seeing a tightening of
lending conditions last year, we are encouraged to see that based on Dun
& Bradstreet's survey, a significant 37 per cent of the
respondents are expecting borrowing conditions to improve during Q2.
Additionally, availability of finance is decreasing as a business
concern; it was a leading concern for 35 per cent of the respondents in
Q1 and this number has dropped to 30 per cent in Q2. We believe that
this is indicative of the resilience of the financial services industry
in Qatar" <p>Commenting on the findings of the survey Phil
Strange, Chief Financial Officer of Dun and Bradstreet South Asia Middle
East, said, "Qatar is achieving steady GDP growth which is
reflected in the D&B BOI survey where businesses are now more
confident about continued growth of the domestic economy. However,
developments in advanced economies, especially Europe, could disrupt the
fragile global economic recovery; although Qatar seems well-placed to
face such pressures."
2009 CPI Financial. All rights reserved.
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