Today's Edition
MAYS IBRAHIM (ABU DHABI)
Businesses and investors in the UAE are pushing ahead with expansion plans despite geopolitical tensions, with 96% expressing confidence in both short- and long-term growth opportunities, according to a new HSBC survey.
The findings, published in ‘New Networks of Capital: The World Rewired’, are based on responses from 3,000 senior executives and investors across 10 markets in March 2026.
The report shows that global volatility, driven by shocks ranging from the pandemic to inflation and energy price swings, is now widely viewed as a permanent feature of the economic landscape rather than a temporary disruption.
In the UAE, 58% of respondents strongly agreed that significant international growth opportunities remain despite volatility, while a further 38% slightly agreed.
Rather than retreating, companies are actively adjusting strategies, reallocating capital, and pursuing new markets.
In the UAE and Saudi Arabia, 94% of respondents expect cross-border trade and investment to become more regional, reflecting a broader shift toward supply chain reconfiguration.
At the same time, 87% of UAE-based businesses said they are more willing to take calculated risks than five years ago, while more than half reported extending their investment horizons as they position for long-term growth.
The report argues that globalisation is rewiring rather than retreating. While trade and investment flows are becoming more regional, international exposure remains a priority with 89% of firms actively increasing capital deployment in high-growth markets.
Around 93% of businesses worldwide also plan to increase cross-border trade or investment over the next five years, while 88% are recalibrating capital allocation strategies, including entering new markets and investing in emerging technologies.
In the UAE, 93% of respondents said the current environment presents a window to reposition their organisations.
Technology, particularly artificial intelligence, is emerging as a central driver of investment decisions. About half of respondents said access to technology and infrastructure is now as important as market growth in shaping international strategy.
The survey also showed that 49% identified AI and technology as the top factors influencing portfolio positioning, while 32% expect it to transform their core business model by 2030.
The effects of these shifts are becoming visible in the structure of the global financial system, according to the report.
Nine in 10 respondents expect digital finance adoption to accelerate significantly over the next five years, although nearly half admitted they do not yet fully understand its implications for their organisations.
Moreover, businesses and institutional investors believe that private capital (33%) will play a dominant role in global capital allocation in the decade ahead, signalling a move toward more flexible and long-term funding models.
