• Home
• News Article

Cross border trade continues to drive UAE commercial sector

- UAE has highest percentage of mid-sized companies operating internationally, says HSBC global survey

- HSBC Survey releases data that confirms the rise of East-East trend flows

- HSBC SME Fund sees over 75% allocation including 31% to Emirati owned companies, in the five months since its January 2010 launch

The HSBC International Business survey, covering over 3,600 firms worldwide, has revealed that more than nine out of ten (91%) firms[1] surveyed in the UAE are operating across borders, well above the survey global average of 76% and the highest result in the survey.

Of those, 95% have seen revenue from international business grow in the past 12 months - again leading the international field - and 64% plan to expand their current international business in the next two years.

The survey also demonstrates that UAE-based companies are actively engaging in, and benefiting from, the continued rise in East-East trade flows. India was identified as the largest international market for UAE companies today, with 28% of respondents including the country in their top three, followed by Saudi Arabia at 24% and Mainland China at 22%.

Simon Vaughan Johnson, Regional Head of Commercial Banking, HSBC Group MENA commented: "This data confirms HSBC 's belief that the Middle East is strategically important as an international business hub, with a strong tradition of well-established intra-regional and East-East trading relationships. The survey shows us that 44% of UAE corporates are intending to expand their business within this region over the next two years, as well as further afield in markets such as India, Western Europe, China and South East Asia. HSBC is well-established in each of these markets, enabling customers to work with a trusted partner both at home and abroad, thereby reducing the issues often associated with international expansion."

Nick Levitt, Head of Commercial Banking, HSBC UAE, commented: "The UAE's corporate sector is one of the most internationally orientated business groups in the world, giving them a significant advantage in capturing the higher growth rates anticipated in global trade. With the strong support of the UAE Government, through its policies to support trade and FDI, these companies are in a unique position to develop their businesses in the future. HSBC is looking forward to supporting these successful businesses in connecting into new markets and opportunities."

With over 60 years in the UAE, HSBC has a long history of enabling the commercial sector to maximize cross border trade opportunities, leveraging the bank's international footprint to represent local customers at both end of the transaction. In January 2010, HSBC UAE launched an SME Fund of USD100m targeted specifically at companies[2] actively engaged in international business activities, especially those that are Emirati-owned.

To date, the Fund has seen tremendous success, with over 75% allocation; 31% of which will go to Emirati owned companies.

One Emirati-owned HSBC business which has benefited from the initial USD100m HSBC SME Fund is Shokri Hassan Trading. Mr. G.S. Nair, General Manager, Finance, comments, "Cross border trading is a fast moving market. To be competitive, it is important to ensure that we maintain a strong relationship with a bank such as HSBC , which understands the business of trade in the region. As an Emirati company, it also helped that we could secure Islamic financing solutions through HSBC Amanah , while leveraging HSBC 's in depth knowledge of international trade and the commercial sector, which has positioned us well for continued growth in the future."

The HSBC International Business Survey is the first-of-its-kind, capturing the views of 3,631 mid-size companies across 10 markets, including Hong Kong SAR, India, mainland China, UAE, France, UK, Canada, US, Brazil and Mexico. The survey was conducted in April and May 2010 for HSBC Commercial Banking.

-Ends-

HSBC in the Middle East
HSBC is the largest and most widely represented international bank in the Middle East. HSBC Bank Middle East Limited has 48 branches throughout the United Arab Emirates, Oman, Bahrain, Qatar, Kuwait, Jordan, Lebanon, Pakistan and the Palestinian Autonomous Area. In addition to the branch network, the bank maintains representative offices in Tehran, Iran and Tripoli, Libya. This extensive regional coverage is strengthened by another member of the HSBC Group, HSBC Bank Egypt SAE, and by its associated companies: The Saudi British Bank; HSBC Saudi Arabia Limited; SABB Securities Limited; SABB Takaful Co.; and Dar Es Saalam Investment Bank.

Media enquiries:
Aimee Peters - aimeepeters@hsbc.com / +971 4 423 5608 / +971 56 683 5919

[1] In the UAE, the survey focused on companies with annual turnover of USD 30 million to USD 5 billion.

[2] HSBC UAE launched the SME Fund in January 2010, targeting UAE-based companies engaged in international business activities, particularly (but not exclusively) focused on Emirati-owned businesses. HSBC classifies SME as a company with Annual Sales Turnover of less than USD30m.

© Press Release 2010