The UAE's Non-Oil Private Sector Remained Firmly In Expansion Territory In Early 2026

(MENAFN- Khaleej Times) Businesses and investors in the UAE are maintaining strong confidence in their growth strategies despite regional geopolitical uncertainty, accelerating investments in artificial intelligence and supply-chain redesign to strengthen resilience and capture new international opportunities, according to a new HSBC survey.

The study of 3,000 companies and institutional investors across 10 global markets - including 600 respondents from the UAE and Saudi Arabia - found that firms in the Gulf remain among the most optimistic globally about repositioning for long-term growth, supported by robust economic fundamentals and expanding regional trade corridors.

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Nearly half of UAE respondents said they“strongly believe” in their ability to adapt their organisations for the future despite volatility, significantly higher than the global average of 36 per cent. At the same time, 97 per cent said they still see scope for international expansion even as businesses navigate supply-chain disruptions and shifting geopolitical dynamics.

Selim Kervanci, chief executive officer, Middle East, North Africa and Türkiye (Menat), HSBC Bank Middle East, said companies across the UAE and Saudi Arabia are responding to uncertainty by strengthening operational agility while staying committed to global growth strategies.

“As a lynchpin of global trade, this survey gives a glimpse of the immediate response measures undertaken by firms in Saudi Arabia and the UAE to secure the flow of goods and trade amid disruption in the region,” Kervanci said.

Supply-chain redesign is emerging as a major growth lever, with 95 per cent of UAE respondents saying international opportunities remain strong through reconfigured trade networks. In addition, 94 per cent expect cross-border trade and investment patterns to become more regional over the next five years, signalling deeper integration across GCC and wider Middle East markets.

Technology - particularly artificial intelligence - is also moving rapidly to the centre of corporate strategy. Around 60 per cent of respondents in the UAE and Saudi Arabia said access to technology and infrastructure will play a decisive role in shaping business strategies over the next three years.

More than half of UAE respondents identified increasing exposure to AI and technology themes as a key driver of portfolio repositioning, underscoring growing investor confidence in innovation-led growth sectors aligned with national diversification agendas. About 67 per cent also reported extending their investment horizons beyond three years, signalling a shift toward strategic long-term positioning despite uncertainty.

The upbeat outlook reflected in the HSBC findings is reinforced by similar confidence indicators across the region. The latest Global CEO Survey by PwC found that 93 per cent of GCC chief executives expect economic growth to strengthen in their home markets - among the highest confidence levels globally - highlighting continued optimism about investment prospects despite geopolitical risks.

Business activity indicators also point to sustained momentum. The UAE's non-oil private sector remained firmly in expansion territory in early 2026, with the S&P Global Purchasing Managers' Index staying above the 50-mark threshold that signals growth, reflecting continued strength in new orders, output and employment across key sectors.

Analysts say these trends mirror broader structural advantages underpinning investor sentiment, including the UAE's strong fiscal buffers, advanced logistics infrastructure and pro-business regulatory environment that continue to attract global capital even during periods of regional tension.

The results also highlight the impact of national transformation strategies and trade agreements that are strengthening the country's role as a gateway between Asia, Europe and Africa. Bilateral corridors such as the UAE–India Comprehensive Economic Partnership Agreement are accelerating trade diversification and supporting supply-chain resilience across priority sectors.

Kervanci said businesses remain firmly anchored by confidence in the GCC's structural growth outlook.

“Businesses in Saudi Arabia and the UAE remain committed to medium-term strategies, anchored by their confidence in the GCC's economic fundamentals and long-term diversification plans,” he said.

“They are also looking to deploy investment in AI and digital capabilities to help improve productivity, decision-making and competitiveness. As a leading international connector, HSBC is supporting clients to keep trade, capital and investment moving to support their growth ambitions.”

Taken together, the survey findings underline how companies across the UAE are positioning themselves not only to withstand external shocks but to leverage technological transformation and regional integration to sustain expansion - reinforcing the country's reputation as one of the Middle East's most resilient and forward-looking business environments.

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