HSBC Survey: UAE Business Moguls Eyeing International Expansion

HSBC Survey: UAE Business Moguls Eyeing International Expansion

By Staff Writer, 23 February 2024

A recent survey conducted by HSBC reveals that multimillionaire business owners in the UAE are gearing up for international expansion in the coming years, with a keen eye on markets across Europe, Asia, and the Americas.

The findings from HSBC's Global Entrepreneurial Wealth Report 2023 indicate that UAE-based entrepreneurs are the second most inclined, after Hong Kong, to extend their business reach overseas or are actively in the process of venturing into international markets, standing at 86%. This places them ahead of their global counterparts.

The report underscores that entrepreneurs amassing fortunes of at least $2 million are drawn to international expansion due to various factors such as opportunities for direct investments, real estate ventures, and operational streamlining.

Richard Van Der Meer, Head of Commercial Banking, UAE, HSBC Middle East, notes, “Corporates and family conglomerates in the UAE are increasingly expanding internationally. They often expand first within the region with Saudi being a key growth market, but increasingly now also look to Asia, Europe and the Americas.”

The survey, which encompassed nearly 1,000 entrepreneurs across nine markets including the UAE, US, UK, India, Hong Kong, and mainland China, targeted respondents with investable assets ranging from $2 million to over $20 million.

Looking ahead, over half of the surveyed entrepreneurs (55%) express intentions to explore expansion opportunities in Europe over the next three to five years, while 42% are considering the Middle East. North America also holds allure for 32% of respondents, with Asia attracting the interest of 23%.

Farzad Billimoria, Head of Global Private Banking, UAE, HSBC Middle East, remarks, “It is no surprise that entrepreneurs and family business owners based in the UAE have a global outlook. The country’s strategic location, pro-entrepreneurial policies, advanced infrastructure and market access encourages global outreach and expansion.”

Despite their aspirations for global expansion, a significant majority of UAE entrepreneurs (56%) also express a strong interest in leveraging their wealth for philanthropic endeavors or sustainable investing initiatives.

Source: Cleofe Maceda / Zawya

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