Businesses in the Middle East are more positive about the prospects for global trade than the world average, according to a new HSBC study.

The latest HSBC ‘Navigator: Now, next and how’ survey of 9,131 companies worldwide, found that 85% of respondents in the Middle East were positive on the prospects for global trade, versus an average survey finding of 81%.

The 437 companies surveyed in the Middle East found that 58% are more optimistic now than in 2018, with 82% expecting their sales to rise over the next 12 months – despite the region’s businesses being the most sensitive the risk of protectionist trade policies (78% vs 65% on average) – with 64% of respondents in the Middle East saying they expect trade-driven sales to rise in the year ahead.

Dan Howlett, Regional Head of Commercial Banking in MENAT, said: “The survey results resonate with what we hear from businesses across the region. Companies in the Middle East are determined to grow irrespective of the external challenges, whether it’s the uncertain political landscape, increasing competition or a tougher regulatory and taxation environment globally. Trade prospects beyond the region and new markets opening up are fuelling their confidence. This means the businesses will need to leverage both, internal as well as external factors, to drive this positive business outlook.”

Trade tensions have escalated worldwide since the 2018 ‘Navigator: Now, next and how’ survey, with those between the United States and China gaining most attention. However, efforts have also been made to further liberalise trade in other parts of the world.

Continuing a trend seen in 2018’s survey, most markets, including in the Middle East are planning to boost their intra-regional trade in the coming three to five years. When it comes to trade between regions, Europe is clearly in the sights of Middle Eastern companies, with 35% of survey respondents in this region naming a European market in their top three targets for business expansion in the next three to five years.

For Egyptian firms the Middle East remains the top region for trade and more intend to expand here in the next three to five years (40%) than when asked last year (32%). Over the next five years, the rest of Africa, Europe and North America will also be among top trading regions for firms in Egypt.

Saudi Arabian companies are targeting markets in the Asia Pacific as a priority, with those in the rest of the Middle East a close second. The Asia Pacific is set to be Saudi Arabia’s top international trading region in the coming three to five years, the survey found. Inside the Middle East region, the UAE and Egypt are Saudi Arabia’s top trading partners, each accounting for 13% of the regional business.

In the UAE, increased investments and activity in preparation for Expo 2020 Dubai are helping bolster business confidence, while weaker global growth, fluctuating oil prices, and exposure to the hydrocarbons sector remain key concerns in the current market climate.

Businesses see international trade as a force for good, saying that it will drive innovation (MENAT: 83%, global: 80%), improve efficiency (MENAT: 81%, global: 78%) and provide new business opportunities (MENAT: 80%, global: 79%).

-Ends-

Media enquiries to:
Mariam Adamyan                                             
+ 971 050 255 1309                                             
mariamadamyan@hsbc.com 

HSBC Navigator: Now, next and how for business

HSBC’s Navigator report comprises a global survey gauging business sentiment and expectations on trade activity and business growth from 9,131 decision-makers in 35 markets. Research was conducted by Kantar for HSBC between August and September 2019. HSBC’s Navigator helps businesses capitalise on new opportunities and make informed decisions for the future by understanding the outlook for international trade.

The full report can be accessed here: www.business.hsbc.com/trade-navigator

Interviews for the Navigator: Now, next and how survey were conducted in Argentina, Australia, Bangladesh, Belgium, Brazil, Canada, Egypt, France, Germany, Greece, Hong Kong, India, Indonesia, Ireland, Italy, Japan, mainland China, Malaysia, Mexico, the Netherlands, Poland, Russia, Saudi Arabia, Singapore, South Africa, South Korea, Spain, Sweden, Switzerland, Thailand, Turkey, the UAE, the UK, the USA and Vietnam.

Over half (55%) the companies interviewed were SMEs making annual sales of between US$5m and US$50m, with the remainder being larger enterprises.

HSBC Commercial Banking

For over 150 years we have been where the growth is, connecting customers to opportunities. Today, HSBC Commercial Banking serves around 1.5 million customers across 53 markets, ranging from small enterprises focused primarily on their home markets through to corporates operating across borders. Whether it is working capital, term loans, trade finance or payments and cash management solutions, we provide the tools and expertise that businesses need to thrive. As the cornerstone of the HSBC Group, we give businesses access to a geographic network covering more than 90% of global trade and capital flows.

For more information visit: http://www.hsbc.com/about-hsbc/structure-and-network/commercial-banking 

HSBC in the MENAT region

HSBC is the largest and most widely represented international banking organisation in the Middle East, North Africa and Turkey (MENAT), with a presence in 9 countries across the region.  HSBC has operations in the United Arab Emirates, Egypt, Turkey, Qatar, Oman, Bahrain, Kuwait and Algeria. In Saudi Arabia, HSBC is a 29.2% shareholder of Saudi British Bank (SABB), and a 51% shareholder of HSBC Saudi Arabia for investment banking in the Kingdom.

This presence, the widest reach of any international bank in the region, comprises some 350 offices and around 10,500 employees. In the year ending 31st December 2018, HSBC in the MENAT region made a reported profit before tax of US$ 1,557m.

© Press Release 2019

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