A Vast Majority of UAE Working Professionals Claim the Coronavirus Has Impacted Their Business

As Coronavirus takes a toll on global and regional economies, YouGov ran a survey among 220 working professionals belonging to the senior management in various companies (senior business managers and above) between 9th- 15th March to understand the impact of the pandemic on their business and the overall economy.

Four in five (79%) of the surveyed business professionals claimed the Coronavirus had a large or moderate impact on their business. 13% said the impact was minor and only 6% claimed to have no impact at all. Working residents within the income bracket of AED 20,001- 40,000 were more likely to feel the effect as compared to other income-group professionals.

Among the top ways in which the outbreak has affected their business was cancellation or postponement of business trips or external appointments, as said by 47% of the respondents. Almost as many claimed (43%) to introduce hygiene measure and supplies in the company.

Many indicated there was a drop in sales (42%) and sensed insecurity and safety concerns among employees (42%). Roughly a quarter said they were facing HR-related issues such as- increased work from home (29%) and rise in employee sick leaves (24%). Another quarter (25%) were facing interruptions to the supply chain. One in five reported reduced operating hours (20%) and almost as many suffered office or store closures (18).

On a slightly positive note, 7% said they witnessed increase in sales as a result of this outbreak.

The data suggests further disruption on the horizon with four in five respondents (80%) saying the virus is very likely or fairly likely to affect their business in the future. Those aged 45+ were much more likely to say this as compared to their younger counterparts (89% saying this).

One in six (17%) of all respondents, however, feel it’s not likely or not very likely to have a future impact on their business.

Although during the time of the survey, cancelled/ delayed business trips or appointments emerged as the biggest visible impact of the virus (said by 47%), declining sales is the greatest commercial woe foreseen by people in the future. A notably higher proportion (48%) are expecting to see decrease in sales in the future compared to those already seeing such a decline.

One in three feel there will be difficulty in communicating with foreign partners (32%) and just as many expect further interruptions to the supply chain (30%).

A slightly higher proportion than the ones who said this now believe there will be reduced operating hours (23%) and office or store closures (20%).

There are few (10%) who look at this as an opportunity and feel there will be increase in sales in the future.

Not only do UAE professionals see a bleak future for their businesses but most of them (88%) feel the Coronavirus will have a large to moderate impact on the country’s overall economy. One in ten (10%) however, reckon the impact will be minor or none at all.

YouGov will continue tracking the impact of the virus on the business community and release new data next week.