- UAE’s multimillionaire business owners rank second globally in their intent to expand internationally, as per HSBC’s 2023 report.
- Entrepreneurs with fortunes ranging from $2 million to over $20 million are motivated by access to investments, real estate opportunities, and operational efficiencies for overseas expansion.
- Europe leads as a preferred expansion destination for 55% of UAE entrepreneurs, followed by the Middle East (42%), North America (32%), and Asia (23%), reflecting a diverse global expansion strategy.
Multimillionaire business owners in the UAE are poised for international expansion in the coming years, with a significant emphasis on growth opportunities in Europe, Asia, and the Americas. This revelation comes from a recent survey conducted by HSBC, shedding light on the strategic outlook of entrepreneurs in the region and their plans for global expansion.
According to HSBC’s Global Entrepreneurial Wealth Report 2023, business owners in the UAE rank second globally in terms of their intention to expand internationally, with an impressive 86% either planning to expand abroad or already in the process of entering international markets. This places them just behind Hong Kong at 96%, showcasing the UAE’s robust entrepreneurial spirit on the global stage.
The survey, which polled nearly 1,000 entrepreneurs across nine markets, including the UAE, US, UK, India, Hong Kong, and mainland China, revealed that entrepreneurs with fortunes of at least $2 million to over $20 million are driven to expand overseas by factors such as access to direct investments, real estate opportunities, and operational efficiencies.
Richard Van Der Meer, Head of Commercial Banking, UAE, HSBC Middle East, commented on the findings, noting that UAE corporates and family conglomerates are increasingly looking beyond regional borders for expansion. While the Middle East remains a key growth market, there is a growing interest in venturing into Asia, Europe, and the Americas.
Europe emerges as a top destination for expansion, with 55% of entrepreneurs surveyed expressing interest in the region over the next three to five years. Additionally, 42% are eyeing opportunities in the Middle East, 32% are considering North America, and 23% have their sights set on Asia.
Farzad Billimoria, Head of Global Private Banking, UAE, HSBC Middle East, attributed this global outlook among UAE entrepreneurs to the country’s strategic location, pro-entrepreneurial policies, advanced infrastructure, and market access, all of which foster an environment conducive to global outreach and expansion.
Despite their ambitious expansion plans, a significant portion of UAE’s wealthy business owners remain committed to philanthropy and sustainable investing, with 56% expressing a desire to use their fortunes for such purposes.
However, the survey also highlighted an area of concern, with nearly one-third of wealthy business owners in the UAE yet to discuss succession plans with their loved ones. Additionally, 13% indicated that they do not intend to broach the subject with their families, underscoring the importance of proactive succession planning in safeguarding family wealth and business legacies.
As UAE entrepreneurs set their sights on global expansion, the findings of the HSBC survey provide valuable insights into the strategic priorities and aspirations driving their growth trajectories on the international stage.
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Last Updated on February 20, 2024 by Safiya K
