Businesses and investors in Saudi Arabia and the UAE are pushing forward with medium-term growth strategies, focusing on artificial intelligence and redesigning supply chains to build resilience amidst regional instability. A new survey by HSBC indicates that confidence in the GCC’s economic fundamentals is enabling companies to invest for the long haul, recalibrating priorities towards technology and intraregional trade.
Quick Facts
- 94% in KSA & UAE expect more regional trade patterns.
- 60% say tech will heavily influence strategy.
- AI is a top-three driver for portfolio repositioning.
Confidence in GCC Fundamentals
The survey highlights a notable confidence gap between regional and global leaders. Respondents in Saudi Arabia (57%) and the UAE (50%) expressed a strong belief in their ability to reposition their organizations for long-term growth, a figure significantly higher than the average of 36% among their counterparts in Europe and Asia.
This confidence appears anchored in the region’s strong economic fundamentals and long-term diversification plans, allowing leaders to maintain strategic focus despite market volatility.
Rethinking Supply Chains for Regional Growth
According to the report, which surveyed 600 senior leaders and institutional investors across Saudi Arabia and the UAE, supply chain reconfiguration is being viewed as a major growth lever. An overwhelming 98% of Saudi and 95% of UAE respondents agreed that international growth opportunities can be found by reconfiguring supply lines.
Furthermore, 94% of businesses in both countries anticipate that cross-border trade and investment will become more regional over the next five years, indicating a strategic shift to strengthen local corridors.
Selim Kervanci, CEO for MENAT at HSBC Bank Middle East, commented on the findings: “As a lynchpin of global trade, this survey gives a glimpse of the immediate response measures undertaken by firms in Saudi Arabia and the UAE to secure the flow of goods and trade, amid disruption in the region.”
AI and Tech Take Center Stage
Access to technology and infrastructure has become a central pillar of corporate strategy. 60% of respondents said these factors will be a major influence on their organization over the next three years, with a clear emphasis on using AI and digital tools to improve forecasting and operational strength.
This focus is also reflected in investment decisions. Increasing exposure to AI and tech themes was a top-three driver for portfolio changes in both the UAE (52%) and Saudi Arabia (46%).
Organizations in the region are also adopting a longer-term investment outlook. Investment horizons have lengthened for 73% of businesses in Saudi Arabia and 67% in the UAE, compared to a global average of 53%, signaling a clear move towards long-term strategic positioning.
“They are also looking to deploy investment in AI and digital capabilities to help improve productivity, decision-making and competitiveness,” Kervanci added.
About HSBC
HSBC is one of the world’s largest banking and financial services organizations, with a presence in 56 countries and territories. It is the largest and most widely represented international banking organization in the Middle East, North Africa and Türkiye (MENAT) region, with operations in nine countries. In Saudi Arabia, HSBC is a 31% shareholder of Saudi Awwal Bank (SAB).
Source: Zawya
