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120153
Tue, 05/04/2010 - 13:58
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https://oananews.org//node/120153
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UAE leads in HSBC Global Confidence Index
Abu Dhabi, May 4, 2010 (WAM)- The UAE has secured its reputation as one of the leading trading hubs worldwide, according to the latest HSBC Trade Confidence Index. Once again in first place overall, UAE's attractiveness as an import and export centre has been recognised by the local trading community.
Business sentiment globally showed an overall positive outlook with an average global reading of 116 (110 last wave) on a scale of 0 to 200, with 100 as a neutral reading. Emerging markets are more optimistic scoring an average of 122 points over developed markets 106 points.
Encouraged by the UAE government's trade regulations and business environment, the UAE scored 134 (last survey 118), the highest score from all countries surveyed, followed by India at 133 (last survey 117) and Vietnam at 132 (last survey 110).
Improved sentiment was also seen in Hong Kong at 111 points (102), though it remained flat in Singapore at 111 points (110), the other two key global re-export centres covered in the survey along with UAE.
The HSBC Trade Confidence Index covers a total of over 5100 importers and exporters in 17 countries - including key economies in the Asia-Pacific region, the United Arab Emirates (UAE) and Saudi Arabia in the Middle, Brazil, Mexico, the UK and the US, and is the only global opinion survey of its kind.
Speaking at the event, H.E. Sheikha Lubna bint Khalid Al Qasimi, the Minister of Foreign Trade, said that the fact that the largest percentage of businessmen confident in the growth of business activities is in the UAE, provides a strong confirmation that the UAE continues to be on the frontline in its commercial activities and ability to attract growth opportunities on an international level.
68% of traders in UAE expect emerging government regulations to benefit their businesses. This score is the highest in the world and also much higher than 18% in Singapore, 9% in Hong Kong and the global average of 26%.
She added that the above results confirm the confidence the private sector and traders have in the regulations and laws which are being adopted by the state and the government to strengthen commerce and develop the economy.
"These results provide a strong indicator that the UAE has begun a new phase in its development process after smoothly surpassing the effects of the global financial crisis and that it doesn't waste an opportunity to develop and improve its economic regulations and strengthen its commercial, competitive and investment climate."
Simon Cooper, CEO of HSBC Middle East, said, "The latest HSBC Trade Confidence Index is showing growing confidence in the state of global and regional trade, indicating that exporters and importers might be seeing the start of an economic recovery. The HSBC Index joins the growing list of indicators pointing toward a pickup in economic activity.
"Across the region trade has remained the lifeblood of the economy, and this is especially true for the UAE. In the last decade, the Middle East has seen trade with Asia grow 40% faster than trade with Europe or US. With 977 offices in Asia, and 259 offices in the Middle East, HSBC is the preferred trading partner for importers and exporters and the largest trade bank covering Middle East trade flows." UAE's strong confidence amongst traders was a result in part due to their optimistic outlook on the growth of trade business over the next six months. In UAE 56% (last survey 46%) of the traders now anticipate an increase in trade business over the next six months and further 31% expect it to at least remain at current levels. More traders in UAE are expecting the global economy to do better (77%) as compared to last survey (47%).
Globally majority of traders in Latin America (64%), Greater China (63%) and India (61%) also expect an increase in trade volumes in the next six months. Over half of traders (56%) including those in the UK, the US, Canada and Germany are bullish out their outlook on trade volumes.
Lawrence Webb, HSBC's Global Head for Trade and Supply Chain, said: "Trade is playing a key role in the global economic recovery. The strengthening of confidence from these global respondents over the last year, despite slow economic progress in the West and the recent crisis in the Middle East, is proof of the significance of trade. Trade momentum is clearly shifting to the emerging markets, where the rebound in trade, fuelled by intra-regional activity, continues to boost global economic recovery. However, developed economies such as the US, which are capitalising on the opportunities in emerging markets are also set to benefit." UAE companies express greater confidence for growth in trade within the domestic Middle East markets, with Greater China and Asia seen as emerging growth areas. Globally respondents showed that intra-regional trade will continue to underpin trade activity.
Traders in UAE, like those in most parts of the world, secure most of their trade finance needs from the banking sector. However access to credit continued to rank among the major concern of businesses worldwide including the UAE. Lack of product demand, fluctuating foreign exchanges and buyers defaulting on payments were also seen as barriers to growth.
Kersi Patel, Regional Head of Trade and Supply Chain, HSBC Middle East said, "The survey shows that banks continue to play a strong role in global trade recovery, especially in developing economies where the financial systems remain relatively robust." "Strongly capitalised banks like HSBC will continue to have the appetite and the capability to support customers' trade finance needs as confidence and activity return." "Dubai remains the principal trade hub in the MENA region and recent World Bank studies indicate that the UAE has the most comprehensive logistics infrastructure in the region. The UAE Government has made substantial investments to build on the UAE's geographical advantage by investing in trade related infrastructure and no doubt these proactive initiatives have supported the latest survey results." concluded Simon Vaughan Johnson, Regional Head of Commercial Banking, HSBC Middle East.
In summary, the HSBC Trade Confidence Index found a range of signs in support of a positive trade outlook in the UAE.
61% expect their need for trade finance to increase, a substantial increase from the second wave (37%) Credit offered by suppliers is becoming an important source of funding - reflection of secured trade products' popularity in the region 55% of respondents expect improved access to trade finance; and an additional 40% of respondents expect their ability to access trade finance to remain at current levels 77% of respondents expecting global economy to grow and another 17% are expecting the economy to maintain the current level 21% of the traders expect the risk of buyers defaulting on payment to increase and a further 69% expect it to remain at the same level Greater focus on risk management by doing less business with particular buyers is the preferred strategy, however that may lead to loss of some business in the short term 69% of traders are of the view that movement in exchange rates will have positive impact, which is substantially higher than the last wave (27%) - Stronger US$ is seen to have a beneficial impact on UAE traders .
Business sentiment globally showed an overall positive outlook with an average global reading of 116 (110 last wave) on a scale of 0 to 200, with 100 as a neutral reading. Emerging markets are more optimistic scoring an average of 122 points over developed markets 106 points.
Encouraged by the UAE government's trade regulations and business environment, the UAE scored 134 (last survey 118), the highest score from all countries surveyed, followed by India at 133 (last survey 117) and Vietnam at 132 (last survey 110).
Improved sentiment was also seen in Hong Kong at 111 points (102), though it remained flat in Singapore at 111 points (110), the other two key global re-export centres covered in the survey along with UAE.
The HSBC Trade Confidence Index covers a total of over 5100 importers and exporters in 17 countries - including key economies in the Asia-Pacific region, the United Arab Emirates (UAE) and Saudi Arabia in the Middle, Brazil, Mexico, the UK and the US, and is the only global opinion survey of its kind.
Speaking at the event, H.E. Sheikha Lubna bint Khalid Al Qasimi, the Minister of Foreign Trade, said that the fact that the largest percentage of businessmen confident in the growth of business activities is in the UAE, provides a strong confirmation that the UAE continues to be on the frontline in its commercial activities and ability to attract growth opportunities on an international level.
68% of traders in UAE expect emerging government regulations to benefit their businesses. This score is the highest in the world and also much higher than 18% in Singapore, 9% in Hong Kong and the global average of 26%.
She added that the above results confirm the confidence the private sector and traders have in the regulations and laws which are being adopted by the state and the government to strengthen commerce and develop the economy.
"These results provide a strong indicator that the UAE has begun a new phase in its development process after smoothly surpassing the effects of the global financial crisis and that it doesn't waste an opportunity to develop and improve its economic regulations and strengthen its commercial, competitive and investment climate."
Simon Cooper, CEO of HSBC Middle East, said, "The latest HSBC Trade Confidence Index is showing growing confidence in the state of global and regional trade, indicating that exporters and importers might be seeing the start of an economic recovery. The HSBC Index joins the growing list of indicators pointing toward a pickup in economic activity.
"Across the region trade has remained the lifeblood of the economy, and this is especially true for the UAE. In the last decade, the Middle East has seen trade with Asia grow 40% faster than trade with Europe or US. With 977 offices in Asia, and 259 offices in the Middle East, HSBC is the preferred trading partner for importers and exporters and the largest trade bank covering Middle East trade flows." UAE's strong confidence amongst traders was a result in part due to their optimistic outlook on the growth of trade business over the next six months. In UAE 56% (last survey 46%) of the traders now anticipate an increase in trade business over the next six months and further 31% expect it to at least remain at current levels. More traders in UAE are expecting the global economy to do better (77%) as compared to last survey (47%).
Globally majority of traders in Latin America (64%), Greater China (63%) and India (61%) also expect an increase in trade volumes in the next six months. Over half of traders (56%) including those in the UK, the US, Canada and Germany are bullish out their outlook on trade volumes.
Lawrence Webb, HSBC's Global Head for Trade and Supply Chain, said: "Trade is playing a key role in the global economic recovery. The strengthening of confidence from these global respondents over the last year, despite slow economic progress in the West and the recent crisis in the Middle East, is proof of the significance of trade. Trade momentum is clearly shifting to the emerging markets, where the rebound in trade, fuelled by intra-regional activity, continues to boost global economic recovery. However, developed economies such as the US, which are capitalising on the opportunities in emerging markets are also set to benefit." UAE companies express greater confidence for growth in trade within the domestic Middle East markets, with Greater China and Asia seen as emerging growth areas. Globally respondents showed that intra-regional trade will continue to underpin trade activity.
Traders in UAE, like those in most parts of the world, secure most of their trade finance needs from the banking sector. However access to credit continued to rank among the major concern of businesses worldwide including the UAE. Lack of product demand, fluctuating foreign exchanges and buyers defaulting on payments were also seen as barriers to growth.
Kersi Patel, Regional Head of Trade and Supply Chain, HSBC Middle East said, "The survey shows that banks continue to play a strong role in global trade recovery, especially in developing economies where the financial systems remain relatively robust." "Strongly capitalised banks like HSBC will continue to have the appetite and the capability to support customers' trade finance needs as confidence and activity return." "Dubai remains the principal trade hub in the MENA region and recent World Bank studies indicate that the UAE has the most comprehensive logistics infrastructure in the region. The UAE Government has made substantial investments to build on the UAE's geographical advantage by investing in trade related infrastructure and no doubt these proactive initiatives have supported the latest survey results." concluded Simon Vaughan Johnson, Regional Head of Commercial Banking, HSBC Middle East.
In summary, the HSBC Trade Confidence Index found a range of signs in support of a positive trade outlook in the UAE.
61% expect their need for trade finance to increase, a substantial increase from the second wave (37%) Credit offered by suppliers is becoming an important source of funding - reflection of secured trade products' popularity in the region 55% of respondents expect improved access to trade finance; and an additional 40% of respondents expect their ability to access trade finance to remain at current levels 77% of respondents expecting global economy to grow and another 17% are expecting the economy to maintain the current level 21% of the traders expect the risk of buyers defaulting on payment to increase and a further 69% expect it to remain at the same level Greater focus on risk management by doing less business with particular buyers is the preferred strategy, however that may lead to loss of some business in the short term 69% of traders are of the view that movement in exchange rates will have positive impact, which is substantially higher than the last wave (27%) - Stronger US$ is seen to have a beneficial impact on UAE traders .
