Entrepreneurs in the UAE are second most likely to operate internationally or be in the process of expanding abroad, behind Hong Kong and ahead of global counterparts, a new study has revealed.
According to HSBC’s Global Entrepreneurial Wealth Report, 86 per cent of the almost 1,000 businessmen surveyed for the study opined that the UAE-based entrepreneurs are most likely to operate internationally, while 96 per cent of the respondents said those in Hong Kong are better positioned.
The UAE, which has one the world’s most conducive and thriving ecosystems for entrepreneurial ventures, is also home to the highest number of globetrotting entrepreneurs in the world, followed by India. Some 64 per cent of UAE-based entrepreneurs live a global life, with a minimum of two and a maximum of six locations they call home. Compared to that the most domestically based entrepreneurs are found in the US (78 per cent) and France (65 per cent).
The study also found that almost one-third of UAE’s wealthy have yet to discuss succession plans with their families. About 13 per cent said they don’t plan on ever broaching the subject.
The survey covered entrepreneurs with investable assets ranging from $2 million to more than $20 million across nine markets including the UAE, the US, the UK, India, Hong Kong, and mainland China. Two-thirds of entrepreneurs in the UAE were found to come from a family business background.
The study found that UAE business owners are among the most international entrepreneurs with the majority eyeing Europe (55 per cent) for expansion over the next three to five years, followed by the Middle East (42 per cent)), North America (32 per cent)) and Asia (23 per cent). Access to direct investments, real estate opportunities, and operational efficiency are key factors driving wealthy entrepreneurs’ decisions when it comes to international growth.
“It is no surprise that entrepreneurs and family business owners based in the UAE have a global outlook. The country’s strategic location, pro-entrepreneurial policies, advanced infrastructure, and market access encourage global outreach and expansion, helping businesses secure profit margins and increase customer base,” said Farzad Billimoria, head of Global Private Banking, UAE, HSBC Middle East.
“While operating across borders can bring complexity, it also offers endless possibilities, be it the ability to raise a family in many different countries and cultures, access to new markets for business or a broader range of investment opportunities,” added Billimoria.
More than half (56 per cent) of UAE respondents say they want their wealth used for philanthropic causes and sustainable investing.
“We are seeing this trend when talking to our clients, as corporates and family conglomerates in the UAE are increasingly expanding internationally. They often expand first within the region with Saudi being a key growth market, but increasingly now also look to Asia, Europe, and the Americas. We are very excited about this opportunity and with HSBC’s strong network spanning over 50 markets, we can support and often accelerate our clients’ international growth plans,” Richard Van Der Meer, head of Commercial Banking, UAE, HSBC Middle East.
Source: www.khaleejtimes.com