United Arab Emirates businesses are demonstrating unprecedented trade confidence, significantly outpacing global peers as they navigate shifting tariff landscapes and expand cross-border partnerships, according to HSBC’s latest Global Trade Pulse Survey. The findings highlight a business ecosystem that has emerged as one of the most resilient and opportunity-rich worldwide.
Revenue Performance Surpasses Global Averages
The survey reveals that 68% of UAE companies reported positive revenue impacts from trade and tariff policies over the past six months, well above the global average of 56%. Only 15% experienced negative impacts, compared with 26% globally. Additionally, 70% of UAE respondents now have greater clarity about how trade policies affect their operations, surpassing the global average of 66%.
Nearly 89% of UAE companies expect international trade to increase over the next two years, reflecting strong optimism anchored in robust economic fundamentals. This confidence is supported by the UAE attracting Dh167.6 billion in foreign direct investment in 2024, representing a remarkable 49% year-on-year surge that reinforced its position as a top global investment destination.
Strategic South Asian Expansion Drives Growth
UAE businesses are deepening production links across South Asia, with 31% increasing output in India compared to the 18% global average. Meanwhile, 11% are expanding production in Sri Lanka, six percentage points above international peers. This strategic repositioning along the Asia-Middle East corridor demonstrates how UAE firms are building multi-country production footprints to buffer against tariff risks.
Economic Transformation Fuels Business Expansion
The broader economic landscape supports this confidence. Greenfield investment rose sharply in 2024, with 1,369 new projects adding Dh53.3 billion in capital, placing the UAE second globally for greenfield FDI. The number of operating businesses surpassed 1.3 million in mid-2025, up more than 235% from approximately 400,000 in 2020.
Non-oil sectors now contribute 75.5% of the country’s GDP, equivalent to Dh1.342 trillion of the total Dh1.776 trillion recorded in 2024. The UAE’s non-oil trade rose by double digits in 2024, supported by a growing network of Comprehensive Economic Partnership Agreements with major economies across Asia, Europe, and Africa, expanding market access and lowering barriers for exporters and manufacturers.
