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Businesses in the UAE remain optimistic of trade opportunities despite increased costs

By Staff Writer

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Businesses in the UAE remain highly confident in their international trade prospects, with 94 per cent saying they expect to grow cross-border trade in the near future, according to HSBC’s 2025 Global Trade Pulse Survey.

Despite ongoing uncertainty and cost headwinds from tariffs, UAE firms are leaning into enhanced planning and digital solutions to stay ahead.

The HSBC survey offers insight into the business plans and sentiment of more than 5,700 international firms across 13 markets regarding tariffs and trade.

UAE business optimism

It reveals that two thirds of corporations globally have already experienced cost increases due to tariff and trade uncertainty – and the worst may be yet to come.

In contrast, companies in the UAE are incredibly optimistic about their future international trade prospects, as they have not suffered particularly pronounced impacts on cost yet, though they do expect to in the short-and-long-term.

Deyana Cherneva, Head of Global Trade Solutions, Middle East North Africa and Türkiye, HSBC Bank Middle East said: “Corporates in the UAE have their counter strategies ready in response to the rapidly evolving trade landscape. Using data, investing in supply chains, and increasing reliance on the Middle East, China, and Europe corridors, are part of their plans.

“Geopolitical and geoeconomic shifts have been a mainstay across decades and resilient businesses know how to adapt and respond. What is encouraging to see is that 75 per cent of corporates in the UAE plan to use the trade uncertainty as an opportunity to evolve and explore new opportunities.”

Key findings include:

  • Top sales markets: UAE (83 per cent), India (34 per cent), UK (32 per cent), US (32 per cent), Germany (19 per cent)
  • Top sourcing markets: UAE (78 per cent), India (40 per cent), US (39 per cent), UK (32 per cent), Germany (25 per cent)
  • Cost pressures: 65 per cent of UAE firms have already experienced average cost increases due to tariffs; 76 per cent expect further increases in the next 6 months
  • Revenue impact: Expected average revenue impact on a United Arab Emirates business is 19 per cent, slightly above the global average of 18 per cent
  • Strategic responses: 48 per cent of United Arab Emirates companies are enhancing data analytics, while others are investing in risk management, supply chain visibility, and entering new markets

The United Arab Emirates’ proactive approach is also reflected in increased regional trade ties. 62 per cent of surveyed UAE firms say they are ramping up reliance on the Middle East, followed by China (47 per cent) and Europe (43 per cent).

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