90% of UAE businesses plan to increase investment in Saudi Arabia as strategic corridor unlocks growth avenues: HSBC Report

Businesses in the United Arab Emirates (UAE) are demonstrating strong confidence in Saudi Arabia’s economic transformation, with a growing number viewing the Kingdom as a central partner in their regional and international growth strategies, according to new research from HSBC.

HSBC New Networks of Capital: Saudi Arabia report reveals nine out of 10 international businesses in the UAE plan to increase trade and investment with the Kingdom over the next five years. More than 78% are eager to do the same over the next six months.

4000 business decision makers with international operations generating revenues of US$50 million to $500 million annually were surveyed. They offered invaluable insight into the evolving trade and investment relationships between the Kingdom and eight major global markets (the UK, Hong Kong, Mainland China, USA, India, Germany, UAE, and Egypt)

Saudi Arabia’s magnetism as a hub for business was characterized by UAE respondents through economic stability (59%), growth (58%), and its position as a gateway to other GCC markets (42%).

Mohamed Al Marzooqi, Chief Executive Officer, UAE, HSBC Bank Middle East Limited, said: “As Saudi Arabia’s leading trading partner in the GCC and its third largest globally, the UAE continues to play a pivotal role in strengthening trade and investment flows between our two nations. That strength underlines how intra-MENAT investment is reinforcing the region’s confidence in its own future.

At HSBC, we see first-hand how our clients are deepening this partnership, investing in technology, energy transition, and major development projects that are shaping the next generation of growth for both nations. As two of the region’s most dynamic economies, our cooperation extends well beyond borders, driving growth, innovation, and opportunity across the MENAT region.”

When considering the best routes for expansion into the Kingdom, nearly half of surveyed businesses in the UAE cited private equity and venture capital funds (48%), followed closely by mutual funds (46%) and partnerships and joint ventures (45%).

Technology and innovation top both current (47%) and future (46%) investment sectors, while project finance (52%) and risk management solutions (46%) is viewed as the most attractive channel for participation.

The existing sense of trust and alignment between the two markets is reinforced by their shared vision of a safe and sustainable future. 96% of UAE businesses agree that Saudi Arabia’s sustainability and ESG agenda encourages investment, while 94% see the Kingdom as a reliable hub for trade and investment even during times of global uncertainty.