HSBC commits $5bn in corporate lending to UAE companies to boost growth

The funding is expected to help businesses enter new markets and re-engineer their supply chains, the lender says

HSBC's office in Canary Wharf, London. Corporate lenders are seeking to tap into the post-pandemic economic recovery as companies step up spending. AFP

HSBC, Europe's biggest bank by assets HSBC, Europe's biggest bank by assets, has committed $5 billion to support the global expansion of UAE companies.

The lender expects to receive inquiries in the next few months from companies in the agriculture, education, FinTech, green energy, green transport, healthcare, trade and urban design and mobility sectors, it said on Sunday.

"Our $5bn commitment, between now and 2023, will support plans that strong companies have to enter new trade markets, re-engineer their supply chains, to innovate – and to play an active part in helping shape the nation's future growth story," said Abdulfattah Sharaf, chief executive of HSBC UAE.

Corporate lenders are seeking to tap into the post-pandemic economic recovery as companies step up spending, economies open up and trade rebounds.

About 81 per cent of UAE companies intend to increase their spending by the end of 2021, according to HSBC's Navigator 2020 report.

That compares with 66 per cent of companies worldwide.

About 90 per cent of UAE companies expect to expand their international trade over the next 12 months to 18 months compared to 72 per cent globally, the report found.

"Our research clearly indicates that UAE companies are ready to invest internationally and sustainably," Mr Sharaf said.

"We will use our international network and our balance sheet to support the ambitions of our customers in the UAE to deliver long-term growth and stability as the economy continues its transition to a sustainable and digitally led future."

HSBC will also extend incentives such as green lending discounts and certifications, access to targeted growth programmes and trade-related benefits such as green trade assessments to businesses that meet the required criteria.

The bank's move comes as nine in 10 UAE companies surveyed in its Navigator 2020 report said they expect to benefit from ESG investments, HSBC said.

In May, HSBC said it had issued the first green mortgages in the UAE, expanding its sustainable lending portfolio within the country.

The bank approved three mortgages for customers purchasing homes in The Sustainable City community in Dubai. The green home loans will be available for properties across the UAE if they meet sustainability criteria, HSBC said.