Traders' outlook remains high despite inflation

Dubai: At a Dubai Chamber of Commerce and Industry economic seminar, results of surveys conducted were revealed claiming that despite inflation, traders' expectations remain high for the year.

In a scale of 1 to 10, with 10 representing the best expectation, average overall expectation for the trading sector for 2008 was calculated at 6.6 compared to 6.5 for last year.

However, the difference in the expectations between the large and the medium/small traders was significant.

Textile traders had low expectations for the year while traders of machinery and industry inputs were high.

A difference was noticed between retail and wholesalers as well, with the latter having much higher expectations.

Population growth was said to be the most common driver for highexpectations.

"Expatriates coming in to the UAE have a higher buying capacity," said Marietta Morada, senior statistical researcher at the chamber.

Limiting factors

The limiting factors in trade such as high wages or rents were considered to have less of an impact on business for this year. However, rent and high transport costs topped the list for 2008 expectations.

"Traders have increased capacity for managing limiting factors," said Morada while adding that traders have become more aware of customer satisfaction and preference.

In addition, small traders were seen as less able to adjust to competition.