Businesses in the UAE are showing some of the highest trade confidence globally, surpassing international counterparts as they manage tariff changes and enhance cross-border partnerships, as per HSBC’s Global Trade Pulse Survey.
The data highlights an extraordinarily vibrant, resilient, and opportunity-rich business environment.
The survey indicates that 68% of UAE companies experienced positive revenue effects from trade and tariff changes in the past six months, significantly higher than the global average of 56%. Only 15% saw negative impacts, compared to 26% globally. Additionally, 70% of respondents now have a clearer understanding of trade policies, exceeding the global average of 66%.
HSBC emphasizes that UAE firms are not merely adapting but strategically positioning themselves for growth. Businesses are strengthening South Asian production links, with 31% increasing output in India (above the 18% global average) and 11% expanding in Sri Lanka, six points above international peers. Nearly 89% of UAE companies anticipate a rise in international trade over the next two years.
This optimism is supported by a robust economic foundation. The UAE attracted Dh167.6 billion in foreign investment in 2024, a year-on-year rise of nearly 49%, enhancing its status as a prime investment destination. Greenfield investment also climbed significantly, with 1,369 new projects contributing Dh53.3 billion, ranking the UAE second for greenfield FDI worldwide.
Such investments have transformed the corporate landscape. Operating businesses in the UAE exceeded 1.3 million by mid-2025, up over 235% from 400,000 in 2020, driven by economic reforms, full foreign-ownership policies, competitive free zones, and efficient licensing.
These regulatory advantages complement a booming non-oil economy. Non-oil sectors now make up 75.5% of GDP, equating to Dh1.342 trillion of the Dh1.776 trillion total recorded in 2024. Sectors like manufacturing, wholesale and retail, financial services, real estate, construction, and logistics have seen substantial growth as investors inject capital into thriving industries.
Supply-chain agility defines UAE business strategies. Companies are diversifying sourcing, establishing multi-country production bases, and strengthening Asia–Middle East connections to mitigate tariff risks. This strategy has been crucial in sustaining revenue growth amid evolving global trade routes.
The trade environment is also bolstering. The UAE’s non-oil trade soared by double digits in 2024, thanks to a widening network of Comprehensive Economic Partnership Agreements (CEPAs) with key economies in Asia, Europe, and Africa. These agreements are enhancing market access for exporters and reducing barriers for manufacturers, traders, and logistics operators in the UAE.
Business leaders reflect a positive outlook. “UAE businesses are not only adapting to the current trade environment but are also reshaping operations to capitalize on growth,” said Deyana Cherneva, head of Global Trade Solutions for the Middle East, North Africa, and Turkey at HSBC.
As the UAE continues to diversify, heavily invest in infrastructure, and establish itself as a global trade and innovation hub, its business environment is showcasing remarkable resilience. Its companies are emerging as some of the most agile and globally oriented, securing the UAE’s position as one of the world’s most dynamic economies.
With tariff adjustments, supply chain reorganizations, and realigning trade corridors, UAE firms are clearly signaling they are not just keeping pace with global changes—they are setting the pace.
