Dubai’s the Limit

As September dawns, continuing worries grow over the future of the Eurozone in its current, single currency system. Political battles in France, Germany and Greece are set to take place to determine whether keeping the Euro is a viable option. While the Euro was up 0.1% in recent figures, the situation in Greece remains hugely uncertain. This in turn continues to undermine the position of the Euro as a global trade currency. Elsewhere, for businesses currently seeking investment, recent figures suggest that the gap for investors left open by the crisis in Europe is more and more often being filled by banks that provide profitable options abroad. Some of the best opportunities now sit the in United Arab Emirates, where the majority of businesses are reporting significant growth. While even smaller local banks saw increases of up to 6%, even international banks are now increasingly finding ways to enhance Dubai’s potential at its fullest. Take HSBC, for instance, a bank which allocated over half a billion AED (United Arab Emirates Dirhams) for small and medium sized enterprises just in the three months following May 15th, 2012.

With the wide range of business banking services from HSBC, customers in the country are generally keen to enjoy Dubai’s privileged role in international trade: considering that 88% of HSBC’s 0.5bn was allocated to businesses wishing to trade internationally, it’s also easy to see why.

While the UAE are enjoying a resurgence of responsible borrowers, there are now strong signs of a of real estate recovery which is encouraging foreign investors even more: according to Dubai government figures, in the first half of 2012 foreigners bought real estate assets worth AED 28.3bn, marking a 36 per cent increase on last year. Reports made earlier this month show UAE trade fees and commissions to be up by 7% in 2011, and despite continuing global deficits, UAE foreign trade grew substantially in the same year. In 2012, Dubai saw increases of 12% from non-oil foreign trade. The Minister of State for Financial Affairs is proud to promote trade finance as one of the most important economic matters, second only to the Comprehensive Financial Policy for Stability.

Issa Baluch, president of the National Association of Freight and Logistics in Dubai, stated on the Dubai Trade website that Dubai can currently count itself amongst the significant global players in terms of international trade and transport logistics thanks to the governmental policies of expansion in hot growth sectors such as sea and air freight. Relations between UAE and China continue to grow, with the Industrial and Commercial Bank of China within the Middle East seeing their profits double in the first half of this year. Tian Zhiping, the ICBC chief executive is pleased with the results and will be looking to continue trade growth within the country. The forging of these bonds with a world super power could prove extremely positive for the Middle East and in turn benefit trade and business partners. With the UAE in a comparably comfortable financial position, it would seem now is the time to move towards trade business within the Middle East, which currently imports almost all their resources bar oil, gas and petroleum.

Corporate banking has remained strong since the global market deficit hit in 2008, indicating a continued effort by UAE banks to maintain the trust of their customers.

Filed Under: Credit

  • After Dubai, Saudi Arabia emerged as the next most desirable investment destination for the more countries . I think the people from  the all over the world come here every years for Hajj and businesss.