A new report from international bank Standard Chartered reveals that global companies are increasingly expanding their operations in the UAE to navigate the complexities of rising tariffs and geopolitical shocks. The study, which surveyed over 1,000 corporate leaders across 17 markets, identified the UAE as a “stand-out market” for trade growth, with one in five businesses planning to increase their sourcing, manufacturing, or export activities in the country within the next five years.
The Global Hedge Against Uncertainty
In an era of supply chain disruptions, the UAE’s political neutrality and robust infrastructure have positioned it as a critical safe haven for international trade. Executives credit the nation’s stability as a key factor for the inflow of businesses. This was evident during the Russia-Ukraine conflict, where goods intended for those markets were diverted to Dubai’s free zones before being rerouted globally. Similarly, Indian exporters have begun moving operations to the UAE to bypass steep US tariffs, using the country as a flexible base to redirect products to other markets if tariffs make them uncompetitive.
A World-Class Logistical Hub
The UAE’s appeal is significantly bolstered by its superior logistics infrastructure. Dubai’s Jebel Ali port, one of the world’s busiest, along with numerous free zones offering duty-free storage and re-export options, provides unmatched flexibility. Ashish Panjabi, COO of UAE electronics retailer Jacky’s, described the country as logistically the “centre of the world,” citing its excellent air and sea connections. This allows businesses to bulk-ship products into Dubai for consolidation before re-exporting them worldwide, a convenience that outweighs rising operational costs for many.
Growing Interest From India And China
The trend is being led by major economic powers seeking to de-risk their supply chains. Indian businesses have shown significant interest, with Dubai’s Bharat Mart trading hub at Jebel Ali free zone receiving over 9,000 expressions of interest. Chinese manufacturers, particularly in the renewables sector, are also exploring moving operations to the Middle East to avoid potential tariffs and decentralize their manufacturing for better access to international markets. The ability to move funds freely while complying with international anti-money laundering regulations further enhances the UAE’s attractiveness as a hub for both goods and capital.
About Standard Chartered
Standard Chartered is a leading international banking group with a presence in 53 of the world’s most dynamic markets and serving clients in a further 64. The bank is listed on the London and Hong Kong Stock Exchanges. Its purpose is to drive commerce and prosperity through its unique diversity, and its heritage and values are expressed in its brand promise, here for good.
Source: AGBI
