UAE Firms Outpacing Global Peers In Trade Confidence

(MENAFN- Khaleej Times)

Businesses across the UAE are projecting some of the strongest trade confidence worldwide, outpacing global peers as they navigate tariff shifts and expand cross-border partnerships, according to HSBC's latest Global Trade Pulse Survey.

The findings reflect a business ecosystem that has become one of the most vibrant, resilient and opportunity-rich in the world.

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The survey shows that 68 per cent of UAE companies reported positive revenue impacts from trade and tariff policies over the past six months - well above the global average of 56 per cent. Only 15 per cent reported negative impacts, compared with 26 per cent globally. Meanwhile, 70 per cent of respondents said they now have greater clarity about how trade policies affect them, surpassing the global average of 66 per cent.

HSBC notes that UAE firms are not simply adapting to changing conditions - they are repositioning themselves to capture growth. Businesses are deepening South Asian production links, with 31 per cent increasing output in India (compared with the 18 per cent global average) and 11 per cent expanding production in Sri Lanka, six percentage points above international peers. Nearly 89 per cent of UAE companies expect international trade to increase over the next two years.

This confidence is anchored in a powerful economic backdrop. The UAE attracted Dh167.6 billion in foreign direct investment in 2024, a surge of nearly 49 per cent year-on-year that reinforced its position as one of the world's top investment destinations. Greenfield investment rose sharply as well: 1,369 new projects added Dh53.3 billion in capital, placing the UAE second globally for greenfield FDI.

These inflows have reshaped the corporate landscape. The number of operating businesses in the UAE surpassed 1.3 million in mid-2025 - up more than 235 per cent from about 400,000 in 2020 - a transformation driven by economic reforms, 100 per cent foreign-ownership policies, competitive free-zone ecosystems, and streamlined licensing.

Alongside these regulatory advantages, the non-oil economy is powering forward. Non-oil sectors now contribute 75.5 per cent of GDP, equivalent to Dh1.342 trillion of the total Dh1.776 trillion recorded in 2024. Manufacturing, wholesale and retail, financial services, real estate, construction and logistics all reported strong expansion as domestic and foreign investors poured capital into growth-oriented industries.

Supply-chain agility is another hallmark of UAE business strategy. Companies are diversifying sourcing markets, building multi-country production footprints and strengthening ties along the Asia–Middle East corridor to buffer themselves against tariff risk. This approach has been instrumental in helping UAE firms maintain revenue momentum even as global trade routes continue to evolve.

The broader trade environment is also strengthening. The UAE's non-oil trade rose by double digits in 2024, supported by a growing network of Comprehensive Economic Partnership Agreements (CEPAs) with major economies in Asia, Europe and Africa. These deals are expanding market access for exporters and lowering barriers for UAE-based manufacturers, traders and logistics operators.

For business leaders, the data reflects a bullish outlook.“UAE businesses are not only adapting to the current trade environment but seizing the opportunity to reshape their operations and capture growth,” said Deyana Cherneva, head of Global Trade Solutions for the Middle East, North Africa and Turkiye at HSBC.

As the UAE continues to diversify, invest heavily in infrastructure, and position itself as a global trade and innovation hub, the country's business ecosystem is demonstrating exceptional resilience. Its companies are emerging as some of the world's most agile and internationally minded - a competitive edge that is solidifying the UAE's status as one of the planet's most dynamic economies.

With tariffs shifting, supply chains reorganising and trade corridors realigning, UAE firms are sending a clear message: they are not merely keeping pace with global change - they are setting the rhythm.

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