Thursday, May 17, 2012
Gulf News
Abu Dhabi HSBC has announced the launch of an international trade small and medium enterprise (SME) fund committing Dh1 billion to the sector in the UAE. SMEs form 95 per cent of the businesses in the UAE.
The fund is open to new and existing HSBC customers with cross-border trading requirements. As much as 30 per cent of the fund will be allocated to Emirati-owned businesses.
Announcing the fund, Abdul Fattah Sharaf, chief executive of HSBC Bank Middle East Limited-UAE said: “We remain deeply committed to the UAE and the businesses that support the country’s economy. We continue to work extensively with free zones, relevant government authorities and key working groups to ensure that the segment flourishes and grows.”
Nicholas Levitt, head of HSBC’s Commercial Banking Unit, said previously, HSBC had launched two SME funds. “The first SME fund of $100 million [Dh367 million] was launched in 2010 and was fully allocated within six months. The second fund, also of $100 million was launched in 2011 and was fully allocated within three months,” said Levitt.
With regard to the third SME fund launch, Levitt said: “We don’t have a hard target as to when the fund needs to be fully allocated.”
He said HSBC has targeted just under 20 per cent loan growth in the SME segment this year in the UAE, similar to last year. The bank’s exposure to the SME sector in the UAE was $600 million at the end of 2011, said Levitt. “The level of loan growth [overall] is very limited at the moment. Five of the largest UAE banks posted only a 0.7 per cent growth in loans in the first quarter this year. We expect the UAE’s GDP to grow three per cent to four per cent in 2012,” said Levitt, adding even though the consumption sector of the country’s economy was doing well, there were issues with real estate and infrastructure sectors. He didn’t elaborate.
Rana Al Emam, Head of Business Banking for HSBC Middle East, quoting HSBC’s recent trade forecast said the UAE will grow at an annualised rate of seven per cent over the next five years to 2016 which would then increase between 2017-2021 to nearly 5.5 per cent.
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The first SME fund of $100 million was launched in 2010 and was fully allocated within six months. The second fund, also of $100 million, was launched in 2011 and was fully allocated within three months.”
Nicholas Levitt
Head of Commercial Banking Unit, HSBC
By Himendra Mohan Kumar?Staff Reporter
Gulf News 2012. All rights reserved.
