On Sunday, June 27, 2021, HSBC stated that they are pledging $5 billion in financing to “outstanding” firms in the United Arab Emirates to assist fuel the Gulf country’s growth goals.
The UAE’s economy struggled in 2020 when important industries including the hospitality and tourism sectors were decimated by the COVID-19 pandemic.
As we all know, the United Arab Emirate’s GDP dropped by 6.1 percent in 2020, according to preliminary figures released by the country’s statistics center on Sunday, as the coronavirus pandemic affected numerous vital industries.
Companies, government-linked organizations, and regional states like Abu Dhabi, Dubai, and Sharjah have all loaned billions to shore up their budgets and support expenditures.
“Our study clearly demonstrates that UAE firms are interested in investing worldwide and consistently,” Abdulfattah Sharaf, HSBC’s CEO for the UAE and head of worldwide, stated.
“Our $5 billion pledge, from now until 2023, will assist strong firms’ aspirations to accessing trade agreement markets, re-engineer their production processes, innovate – and play an integral part in shaping the country’s future development story,” Sharaf said in an announcement.
The British bank’s pledge comes 75 years after it first made its debut in the UAE, which is a significant economic powerhouse as well as a key trade and investment center.
HSBC said its Navigator 2020 results demonstrated 81 percent of firms in the UAE were projected to boost government expenditure by end-2021, compared to 66 percent internationally.
HSBC is a global institutional investor and banking holding corporation based in the United Kingdom. With net capital of $2.984 trillion, it is Europe’s second-biggest bank.
As per Forbes magazine’s composite metric, HSBC was the globe’s sixth-largest commercial entity in 2014. The Financial Stability Board considers it a fundamentally significant bank.