ID :
65850
Mon, 06/15/2009 - 14:40
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Shortlink :
https://oananews.org//node/65850
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UAE Minister of Foreign Trade launches HSBC Trade Confidence Index in UAE
UAE's small and mid-market businesses (SMEs and MMEs) that engage in export and import have identified The Middle East as the most promising region for growth in the next three months, according to the new HSBC Trade Confidence Index.
Fifty-seven per cent of survey respondents in the UAE cite the Middle East as the region with the best growth prospects, compared to only seven per cent and six per cent of UAE respondents respectively who expect growth from Greater China and Western Europe (including UK).
The index also shows the UAE traders are the most confident on trade activity growth over the next three months while traders in Hong Kong and Singapore are the most bearish. The UAE scored 115.2 points on the trade confidence index, the highest of any other country surveyed, compared to Hong Kong at 93.1 and Singapore 99.9, the other major trading centres covered in the survey.
In the first survey of its kind, the HSBC Trade Confidence Index asked 2,100 trade-oriented SMEs and MMEs in 24 cities across seven countries about their three-month outlook on: trade volume; buyer and supplier risks; the need for trade finance; access to trade finance; and the impact of foreign exchange and government regulation on their businesses. The results were used to calculate an index ranging from 0 to 200 where 200 represents the highest confidence level, 0 represents the lowest and 100, neutral. Full survey results can be viewed in the attached slides.
HE Sheikha Lubna Bint Khalid Al Qasimi, UAE Minister of Foreign Trade said: "If the HSBC Trade Confidence Index is of any indication, it's a clear sign that the UAE continues to be a place to do business and capture growth opportunities. The UAE has taken several rapid and practical steps to cope with the implications of the global financial crisis; the Government guaranteed bank deposits and offered substantial financial facilities to banks amounting US$32 billion in the fourth quarter of last year, boosting confidence in the UAE's economy and confirming the ability of country to deal rapidly, immediately and positively with the latest economic developments."
The HSBC Trade Confidence Index provides two perspectives on the trade outlook in the region: the more developed markets of Hong Kong, Singapore and Australia are less optimistic - exports are significantly down and the recession continues to impact overall economic activity and sentiment; and the developing economies of the UAE, India, mainland China and Vietnam are more positive, even if they are not immune to the slowdown.
UAE respondents are quite positive in their outlook on trade volumes, with 34 per cent saying they expect volumes to increase in the next three months. In contrast, Singapore and Hong Kong are less positive, with only 29 per cent and 24 per cent of respondents respectively expecting trade volumes to increase.
50 % of traders in UAE expect emerging government regulations to benefit their businesses - indicating strong faith in Government to take proactive steps to support business, much higher than 33% in Singapore and only 8% in Hong Kong. 39% of the respondents in the UAE, he said they will need more trade finance in the next three months compared to only (30%) in Hong Kong and (20%) in Singapore.
At least half of the respondents in the UAE (49%), Hong Kong (50%), and Singapore (39%) expect their banks to meet their trade finance needs. In contrast, 25 per cent of respondents in the UAE said they will rely on self-funding over bank financing.
For the next three months, the majority of respondents across Asia expect little change in the level of risk they face from suppliers not honouring their trade agreements. However, about one-third of respondents in Hong Kong (31%), Singapore (24%) and UAE (18%) expect the risk of payment default by their buyers to increase.
When asked what they will do to protect themselves from risk of non-payment by buyers, traders in the UAE (27%), Singapore (16%) and Hong Kong (10%) identified greater use of secured trade finance products through their banks as the top strategy.
Fifty-seven per cent of survey respondents in the UAE cite the Middle East as the region with the best growth prospects, compared to only seven per cent and six per cent of UAE respondents respectively who expect growth from Greater China and Western Europe (including UK).
The index also shows the UAE traders are the most confident on trade activity growth over the next three months while traders in Hong Kong and Singapore are the most bearish. The UAE scored 115.2 points on the trade confidence index, the highest of any other country surveyed, compared to Hong Kong at 93.1 and Singapore 99.9, the other major trading centres covered in the survey.
In the first survey of its kind, the HSBC Trade Confidence Index asked 2,100 trade-oriented SMEs and MMEs in 24 cities across seven countries about their three-month outlook on: trade volume; buyer and supplier risks; the need for trade finance; access to trade finance; and the impact of foreign exchange and government regulation on their businesses. The results were used to calculate an index ranging from 0 to 200 where 200 represents the highest confidence level, 0 represents the lowest and 100, neutral. Full survey results can be viewed in the attached slides.
HE Sheikha Lubna Bint Khalid Al Qasimi, UAE Minister of Foreign Trade said: "If the HSBC Trade Confidence Index is of any indication, it's a clear sign that the UAE continues to be a place to do business and capture growth opportunities. The UAE has taken several rapid and practical steps to cope with the implications of the global financial crisis; the Government guaranteed bank deposits and offered substantial financial facilities to banks amounting US$32 billion in the fourth quarter of last year, boosting confidence in the UAE's economy and confirming the ability of country to deal rapidly, immediately and positively with the latest economic developments."
The HSBC Trade Confidence Index provides two perspectives on the trade outlook in the region: the more developed markets of Hong Kong, Singapore and Australia are less optimistic - exports are significantly down and the recession continues to impact overall economic activity and sentiment; and the developing economies of the UAE, India, mainland China and Vietnam are more positive, even if they are not immune to the slowdown.
UAE respondents are quite positive in their outlook on trade volumes, with 34 per cent saying they expect volumes to increase in the next three months. In contrast, Singapore and Hong Kong are less positive, with only 29 per cent and 24 per cent of respondents respectively expecting trade volumes to increase.
50 % of traders in UAE expect emerging government regulations to benefit their businesses - indicating strong faith in Government to take proactive steps to support business, much higher than 33% in Singapore and only 8% in Hong Kong. 39% of the respondents in the UAE, he said they will need more trade finance in the next three months compared to only (30%) in Hong Kong and (20%) in Singapore.
At least half of the respondents in the UAE (49%), Hong Kong (50%), and Singapore (39%) expect their banks to meet their trade finance needs. In contrast, 25 per cent of respondents in the UAE said they will rely on self-funding over bank financing.
For the next three months, the majority of respondents across Asia expect little change in the level of risk they face from suppliers not honouring their trade agreements. However, about one-third of respondents in Hong Kong (31%), Singapore (24%) and UAE (18%) expect the risk of payment default by their buyers to increase.
When asked what they will do to protect themselves from risk of non-payment by buyers, traders in the UAE (27%), Singapore (16%) and Hong Kong (10%) identified greater use of secured trade finance products through their banks as the top strategy.
