*Her Excellency, Sheikha Lubna Al Qasimi, Minister for Foreign Trade, UAE speaks to HSBC customers on the opportunities for international businesses
*84% of the Fund allocated to businesses actively seeking to flourish internationally
HSBC announces that it has fully allocated its One Billion Dirham UAE International Trade SME Fund, 2012. Open to new and existing SME customers with cross border trading requirements, the latest Fund was the third tranche in HSBC UAE's flagship SME Fund programme.
Speaking to businesses at the celebration of the close of the Fund, Her Excellency, Sheikha Lubna Al Qasimi, Minister for Foreign Trade, UAE, said: "There are many factors that make SMEs vital cogs in our long-term development plans. For one, they fully complement our successful diversification strategy which has transformed the UAE into the Middle East's most diversified economy. With our non-oil activities now accounting for more than 70 per cent of our GDP, SMEs are part of the equation in managing our hydrocarbon dependence. Also, family-run enterprises, which form the majority of businesses in the UAE, fall under the SME model.
"Moreover, the UAE is aiming to establish itself as a manufacturing hub for the MENA region. A lot of SMEs have become experts at areas such as industrial goods, chemicals, foodstuff, logistics and specialized contracting which are aligned with this ambitious goal.
"Given their importance, the UAE has been hard at work providing favorable regulatory and developmental frameworks and mechanisms for SMEs.
"It is my hope, that others follow the lead of HSBC and the various government and private sector entities represented here tonight. Let us continue to work together to help SMEs push the envelope for a more productive economy that benefits all its stakeholders."
In terms of allocation, 63% of the Fund has been allocated to customers who did not previously bank with HSBC. Approximately 50% of the total Fund was awarded to businesses in Abu Dhabi, 33% to businesses in Dubai and 17% to businesses in the Northern Emirates. Successfully in line with HSBC's overall goal to assist businesses grow and trade across borders, 84% of the Fund went to companies actively seeking to flourish internationally.
Abdulfattah Sharaf, Chief Executive Officer of HSBC Bank Middle East Limited, UAE added:
"We are delighted to be celebrating the successful close of our third SME Fund, and honoured that Her Excellency, Sheikha Lubna Al Qasimi joined us for this exciting occasion. The Fund was our largest to date and is just one of the many ways we seek to contribute to this important segment.
"HSBC has been financing businesses for almost 150 years globally and over 65 years in the UAE. We believe our depth of understanding and ability to help facilitate international business and trade is a key competitive strength. It lies at the heart of how we believe we can best add value to today's SMEs and, in turn, formed the very essence of our SME Fund. We also continue to work extensively with Free Zones, relevant government authorities and key working groups to ensure that the segment flourishes and grows."
HSBC was the first bank in the country to have a dedicated SME team, and the first bank in the UAE to launch a dedicated SME Fund back in 2010. This was then followed by a second Fund in 2011. Both were hailed an outstanding success.
Rana Al Emam, Head of Business Banking for HSBC Bank Middle East Limited, UAE highlighted: "We believe that this is an exciting time for SMEs to explore the international markets. A rapidly growing number are increasingly thinking about ways they can benefit from emerging 'South-South' trade corridors linking South America, Africa and Asia. Many are finding themselves already doing business overseas because they've built strong relationships with multinational customers who take established partners with them into new markets.
"Every day we see a collective reorientation towards emerging markets from companies in developed and developing economies alike. The businesses we have just heard from are classic examples - starting off as small companies in the UAE, and evolving into the regional and international players that they are today. They view it as a commercial imperative to think as globally as they can."
For further information please contact:
Saadia McGlinchey
Regional Head of Communications
Commercial Banking
HSBC Bank Middle East Limited
Tel: 971 4 423 5237
Email: saadia.mcglinchey@hsbc.com
-Ends-
HSBC in the MENA Region
HSBC is the largest and most widely represented international banking organisation in the Middle East and North Africa (MENA), with a presence in 14 countries across the region. HSBC has operations in the United Arab Emirates, Egypt, Qatar, Oman, Bahrain, Kuwait, Jordan, Lebanon, Pakistan, Algeria and the Palestinian Autonomous Area. In Saudi Arabia, HSBC is a 40% shareholder of Saudi British Bank (SABB), and a 49% shareholder of HSBC Saudi Arabia for investment banking in the Kingdom. In Iraq, HSBC holds a majority shareholding in Dar Es Salaam Investment Bank. HSBC also maintains a representative office in Libya.
This presence, the widest reach of any bank in the region, comprises some 295 offices and around 12,000 employees. In the three quarters of the year ending on 30 September 2012, HSBC in the MENA region made a profit before tax of US$1,048m.
© Press Release 2013
