UAE: HSBC to lend over Dh18 billion to firms with global growth plans

Dubai - A survey says 81 per cent of UAE firms intend to increase investment spending in 2021.

Reuters

By Staff Report

Published: Sun 27 Jun 2021, 11:26 AM

Last updated: Sun 27 Jun 2021, 11:31 AM

HSBC bank on Sunday said it is committing $5 billion (Dh18.35 billion) of lending to support strong companies in the UAE that need new capital to drive well-developed plans to grow their businesses globally.

“In the year that the nation celebrates its Golden Jubilee and that HSBC marks 75 years of being the first bank to open its doors for business here, the time is right to launch an initiative to support strong UAE businesses that have bold visions of the future and the prospects to achieve them,” said Abdulfattah Sharaf, CEO HSBC UAE and Head of International.

According to HSBC’s Navigator 2020 report, 81 per cent of UAE companies intend to increase investment spending by the end of 2021 versus 66 per cent of companies globally. 90 per cent of companies expect to expand international trade over 12-18 months versus 72 per cent globally.

The same study showed that 99 per cent of UAE companies see opportunities to benefit from increasing investments in environmental, ethical and sustainable strategies, compared with a global average of 90 per cent.

“Our research clearly indicates that UAE companies are ready to invest internationally and sustainably. Our $5-billion commitment, between now and 2023, will support plans that strong companies have to enter new trade markets, re-engineer their supply chains, to innovate – and to play an active part in helping shape the nation’s future growth story,” Sharaf said.

“We will use our international network and our balance sheet to support the ambitions of our customers in the UAE to deliver long-term growth and stability as the economy continues its transition to a sustainable and digitally-led future,” Sharaf added.

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Incentives, including green lending discounts and certifications, access to targeted growth programmes, and trade-related benefits such as green trade assessments and facilities, will be offered to businesses that meet the required criteria. The list of criteria is available on the initiative’s website.

Given respective innovation and growth patterns over the past 18 months, HSBC expects to receive enquiries from companies in the agriculture, education, financial technology, green energy, green transport, healthcare, trade, and urban design & mobility sectors.