Thursday 1 November 2018
More than four out of five businesses (87 percent) in the United Arab Emirates are optimistic about their outlook for the year ahead and a similar number believe the outlook for international trade is positive. The UAE businesses surveyed by HSBC cite the improving macro-economic environment of the country and the region, healthy global economic growth, and increased consumer confidence as the main reasons for this optimism.
Increasing oil prices, alongside the UAE’s recently announced stimulus packages, and the upcoming Expo 2020 have boosted business confidence, according to the study. Reflecting the optimism, 87 percent of the UAE businesses are positive on their outlook for the year ahead, while a similar proportion (86 percent) are positive about the global trading environment.
“The UAE’s role as a trading hub means that it should also benefit from improving economic prospects in the MENA region,” the report says.
The study showed more than a third (34 percent) of the UAE’s businesses are expanding into new markets to attract new customers and drive growth. Improving economic prospects in the Middle East and North Africa region are also expected to benefit UAE businesses as they plan to expand into some of the key regional economies such as Egypt and Saudi Arabia. Overall, 89 percent of UAE firms are confident their company will succeed in the current trading environment, higher than the global average of 81 per cent.
The HSBC Navigator survey indicates that about a third of the firms surveyed identify growing market share as a top priority, while an increasing focus on international markets was also commonly cited.
“The UAE’s position as a key regional trade, tourism and transport hub will be reinforced over the short-term by rising oil prices, an improving regional economic outlook, continued infrastructure investment ahead of Expo 2020, and an expansionary fiscal stance,” the report adds.
HSBC / Dubai FDI