HSBC pledges $5bn to help UAE firms expand
Funds to support plans to enter new markets, innovate
HSBC is committing $5 billion of lending to support strong companies in the UAE seeking capital to fund global expansion.
Incentives will be offered to businesses that meet the required criteria, HSBC said in a statement.
These include green lending discounts and certifications, access to targeted growth programs, and trade-related benefits.
“Our research clearly indicates that UAE companies are ready to invest internationally and sustainably,” said Abdulfattah Sharaf, CEO of HSBC UAE. “Our $5 billion commitment, between now and 2023, will support plans that strong companies have to enter new trade markets, re-engineer their supply chains, to innovate — and to play an active part in helping shape the nation’s future growth story.”
Companies in the agriculture, education, financial technology, green energy, green transport, healthcare, trade and urban design sectors are expected to benefit from the lending support, HSBC said.
The announcement comes as the British bank marks 75 years since it opened its operations in the UAE.
In HSBC’s Navigator 2020 report, the bank found that UAE companies are more conservative in their outlook as a result of the coronavirus pandemic, but they are still optimistic.
In fact, companies in the UAE were more upbeat than their global counterparts, with 90 percent expecting to have returned to pre-pandemic levels of profitability by the end of 2022, compared to a global average of 81 percent.
The bank’s $5 billion lending support also comes at the right time as the report found that eight in 10 respondents in the UAE said they intend to increase investment in their business in the next year.
“This shows that, despite the events of 2020, businesses in the UAE recognize the need to invest for future growth,” the report found.
“Three-fifths or more will focus that investment on marketing, sales channels, the customer experience, product innovation and cashflow/capital management.”
Looking outside their borders, 90 percent of companies surveyed in the UAE also said they have a positive outlook on international trade within the next year or two.
Looking at the next five years, 37 percent are looking to expand their operations in the Middle East and North Africa, 37 percent are looking to Europe, 12 percent to India, 15 percent to the US and 14 percent to Saudi Arabia.
Our research clearly indicates that UAE companies are ready to invest internationally and sustainably Abdulfattah Sharaf
CEO of HSBC UAE