UAE businesses among most confident globally in managing trade and tariff challenges: HSBC survey

Businesses in the United Arab Emirates continue to demonstrate resilience and confidence above and beyond their global peers, amid ongoing trade and tariff uncertainty, according to the findings of HSBC’s latest Global Trade Pulse Survey. In addition, UAE corporates are increasingly turning to South Asia to expand and deepen business partnerships.

The survey showed that the increased confidence of UAE business decision makers is grounded in the real-world impacts of the shifting trade environment. 

•    68% of UAE businesses say they have experienced positive revenue impacts over the past six months due to tariff and trade policies, surpassing the global average of 56%. 
•    Only 15% of UAE businesses reported a negative revenue impact over the same period, compared to 26% of global businesses.
•    Overall, UAE businesses are more certain about how trade policy is affecting their business than six months ago, with 70% reporting a greater level of certainty, compared to 66% globally.

Deyana Cherneva, Head of Global Trade Solutions, Middle East North Africa and Türkiye, HSBC Bank Middle East said: “UAE businesses are not only adapting to the current trade environment but are seizing the opportunity to re-shape their businesses to capture growth. Increasingly, UAE business leaders are choosing to deepen partnerships with producers in South Asia, reflecting the deepening economic ties between Asia and the Middle East.”

Additionally, the survey reveals that UAE businesses are doubling down on international trade partnerships: 

•    89% are confident of growing international trade over the next two years, particularly with markets in South Asia. 
•    31% of UAE businesses report increasing production in India, well above the global average of 18%. 
•    Meanwhile, 11% report increasing production in Sri Lanka, six percentage points above the global average.

The findings offer insight into the business plans and sentiment of more than over 6,750 business decision makers in 17 markets and reveal the views of business leaders on tariffs and trade.