Businesses in the United Arab Emirates are more confident of brighter trade prospects than their peers in financial hubs Hong Kong and Singapore, world banking giant HSBC said in a survey published Sunday. Almost three-quarters of UAE importers and exporters expect trade volumes to increase or stay the same, compared to 53 percent in Hong Kong and 64 percent in Singapore, according to the HSBC Trade Confidence Index.
"Traders in the UAE seem to have the highest confidence among all countries (surveyed) especially Hong Kong and Singapore," Kersi Patel, a regional manager at HSBC Middle East, told a media conference. "UAE traders are expecting most business to come from the Middle East and sub-Saharan Africa."
The survey that gauges sentiment and expectations of small and medium sized enterprises (SMEs) on foreign trade activity and business growth in the next three months found that the UAE scored 115.2 points on a scale of up to 200 points, compared with 99.9 points in Singapore and 93.1 points in Hong Kong.
The bullish outlook in the UAE, the second-largest Arab economy and a top oil exporter, was a result of the country's strategic geographical position at the crossroads of three continents and the government's investment in trade-supportive infrastructure, HSBC said. The UAE, the world's third-largest re-export zone, was battered by the global economic downturn that brought a six-year oil-fuelled boom to a screeching halt last year, but analysts say signs of recovery have emerged.