HSBC reports that the service exports will expand at an average of 6 percent every year

According to a new report, more than three-quarters (77 percent) of UAE-based businesses forecast an increase in trade volumes in the next one year.

The HSBC report also depicted that 62 percent are awaiting to see a leap in service trade volumes.

It mentioned that, as the country and region go through major economic transformation that aims on diversification, businesses opportunities are increasingly abundant.

As per the report, service exports – of which transport and tourism will count for the lion’s share – will expand at an average of 6 percent every year.

Regional Head of Global Trade and Receivables Finance for HSBC MENAT, Sunil Veetil stated, “Although oil prices have impacted the GCC’s economies over the last year, the UAE’s push for diversification is bearing fruit.”

He said, “As we get closer to Expo 2020, we will see an increasing number of contracts being awarded in preparation, which in turn, increases opportunities for businesses.”

He also mentioned, “Speaking to our corporate customers in the UAE, it is clear that intra-regional trade routes will be of growing importance over the next twelve months – particularly Saudi Arabia, Kuwait. The pivot to Asia however remains strong for the long term, with countries such as India, China and Japan being key import and export destinations – reflecting strong bilateral ties. By 2030, 46 percent of the UAE’s total goods imports for example, will come from Asia.”

In the period of diversification, the UAE is appearing as a standout digital economy, the report stated, adding that about a third (34 percent) of the UAE’s services businesses – greater than the global average of 30 percent – believe larger utilization of technology will be their key driver for trade expansion.

However as businesses actively adapt to the recent technologies, cyber-security remains front-of-mind for many, with a clear majority (70 percent) worried about cyber threats.

 

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