Businesses and investors in Saudi Arabia and the UAE are holding firm on their medium-term strategies despite the current situation in the Middle East, supported by intraregional supply chain redesign and increased use of AI, says an HSBC study. 

The findings are part of a new independent survey from HSBC ahead of its annual Global Investment Summit which was conducted in mid-March against the backdrop of recent world events.

Commenting on the findings, Selim Kervanci, Chief Executive Officer, Middle East, North Africa and Türkiye (MENAT), HSBC Bank Middle East, said: “As a lynchpin of global trade, this survey gives a glimpse of the immediate response measures undertaken by firms in Saudi Arabia and the UAE to secure the flow of goods and trade, amid disruption in the region.”

The survey of 3,000 international businesses and institutional investors in ten markets, including Saudi Arabia and the UAE (600), shows that, after a decade of cumulative and current global shocks, companies are adapting and still investing.

Confidence anchored by GCC fundamentals

The survey points to senior leaders and institutional investors in Saudi Arabia and the UAE recalibrating their medium to long-term priorities. Respondents in Saudi Arabia (57%) and in the UAE (50%) ‘strongly believe’ in the ability to reposition their organisations for the longer term, despite uncertainty. This is higher than counterparts in Europe and Asia (average 36%).

Redesign for resilience and growth

According to the survey, Saudi and UAE businesses and institutional investors continue to prioritise international growth and view supply chain redesign as a growth lever. This is reflected by 98% of Saudi Arabia and 95% of UAE respondents who agreed that, despite volatility, international growth opportunities exist from reconfiguring supply chains.

In addition, the survey found that 94% of businesses in Saudi Arabia and the UAE expect cross-border trade and investment to become more regional in pattern over the next five years, reflecting a shift towards strengthening intraregional corridors while maintaining global reach.

AI, technology and infrastructure

Within their strategies, firms in Saudi Arabia and the UAE placed the greatest emphasis on access to technology and infrastructure. 60% of respondents said access to critical technologies and infrastructure will be a major influence on their organisation’s strategy over the next three years, highlighting the role of AI and digital capabilities in improving forecasting, decision-making and operational resilience.

Senior leaders and institutional investors are also positioning for long-term returns from AI and technology themes. Increasing exposure to AI and tech themes was a top three driver of portfolio repositioning in both the UAE (52%) and Saudi Arabia (46%).

Organisations are also extending their investment timeframes to align with a more complex landscape. Over half of businesses globally (53%) said that their investment horizons have lengthened compared to three years ago. These timeframes are higher in Saudi Arabia (73%) and (67%) in the UAE, signalling a shift towards longer-term positioning despite ongoing uncertainty, it said.

Kervanci continued: “Businesses in Saudi Arabia and the UAE remain committed to medium-term strategies, anchored by their confidence in the GCC’s economic fundamentals and long-term diversification plans. The survey shows that, while international growth remains a priority in the long term, firms also see opportunities to realign intraregional supply chains to keep trade flowing. They are also looking to deploy investment in AI and digital capabilities to help improve productivity, decision-making and competitiveness. As a leading international connector, HSBC is supporting clients to keep trade, capital and investment moving to support their growth ambitions.” - TradeArabia News Service