HSBC Navigator provides comprehensive insight into the now, next and how for business, representing the views of over 9,100 business decision-makers across 35 markets. This report gives an understanding of how businesses like yours can continue to grow now and in the future.
Going against the grain
Increased investments and activity in preparation for Expo 2020 Dubai is helping bolster business confidence in the UAE1. Weaker global growth, fluctuating oil prices, and overreliance on the hydrocarbons sector remain key concerns in the current market climate.
Improving productivity, seizing new opportunities
UAE businesses are upbeat about growth, with 60% saying they are more optimistic now than they were a year ago. More than four-fifths expect growth in the year ahead, with 85% envisaging further expansion over the next five years, beating the global norm.
The majority (83%) predict sales growth over the next 12 months; of these, one-third – the high-growth companies – believe sales will increase by 15% or more. In addition, 92% of businesses are positive on international trade prospects over the next two years, a 7% jump on the previous two.
Driving this positive business outlook, improving business productivity is the top internal consideration, while the top external factor is new markets opening up.
of businesses are positive on international trade prospects over the next two years
|Expect sales to grow*||85%|
|Grow by 15% or more||47%|
|Grow by 6-14%||29%|
|Grow by 5% or less||8%|
|Stay the same||3%|
|Expect sales to shrink||11%|
*This is the sum of grow by 5% or less, 6-14%, 15% or more.
83% of UAE businesses predict sales growth over the next 12 months, which is 1% more than the MENA average.
92% of businesses are positive on international trade prospects over the next two years, which is well ahead of the global average (81%).
Three-quarters of firms anticipate that their business will change substantially over the next five years.