Dubai: Companies from UAE are planning the most international expansion relative to all other countries globally over the next year, according to Citi Commercial Bank’s annual mid-market survey of corporates.
The study showed the most popular destinations for global corporate expansion are the United States, China and Vietnam.
“Global confidence is increasing in companies based in emerging Europe and the Middle East for the clients we polled,” said Vincent Valladares, Head of Citi Commercial Bank, Middle East.
“Companies are increasingly finding more partners in the region than in recent years and it’s encouraging to see that UAE companies rank top of the list globally in international expansion plans,” said Valladares.
Of all companies planning global expansion, 10.4 per cent are from the UAE followed by 8.2 per cent each from Taiwan and the United States.
“We feel this reflects well on the UAE and indicates they see expansion as a means of growing their businesses,” said Valladares.
Most popular international expansion destinations among companies surveyed are the United States accounting for 8.2 per cent of the total and closely followed by 7.8 per cent of firms opting for China.
While 13 per cent of Middle Eat companies polled expect to expand internationally within 2 to 3 years, only 6 per cent of companies polled are planning to expand to the Middle East within the next 2 years.
The study is based on statistical data on expectations for the future business environment and expansion plans from 4,706 Citi Commercial Banking clients. In the Europe and Middle East region the survey covered companies based in 29 countries including Bahrain, Czech Republic, Slovakia, Hungary, Jordan, Poland, Romania, Russia, Turkey and the UAE with average and median annual overall revenues of $103 million (Dh378 million) while 46 per cent of companies polled have up to $25 million in revenue and 54 per cent generate revenue well above that amount.
A vast majority (94 per cent) of the 4,706 respondents are senior financial executives, while 54 per cent of those are CEOs, CFOs, Managing Partners or Owners.
A significant number (19 per cent) of larger companies (with revenues in excess of $25 million) polled expect to expand internationally within 2 to 3 years, with the most popular region for expansion being Asia.
The study also showed the most popular destination countries in the Middle East and Central and Eastern Europe (CEE) are the UAE and Russia. Cross-border expansion to CEE and Middle East is primarily coming from Europe and Asia. While manufacturers plan to expand to CEE and ME countries the most, Emirati, Hungarian and Chinese companies are planning the most cross-border expansion to CEE and Middle East countries.
The survey showed that the UAE’s cross border investments are global in nature and the country’s top trade routes to the rest of the world are closely lined to Singapore, South Africa, India, Hong Kong and United Kingdom.
“Global confidence is increasing in companies based in emerging Europe and the Middle East for the clients we polled. Companies are increasingly finding more partners in the region than in recent years,” said Tasnim Ghiawadwala, Head of Citi Commercial Bank, Europe, Middle East & Africa.
