Middle East SMEs most confident

HSBC’s Small Business Confidence Monitor

According to HSBC's Small Business Confidence Monitor, small and medium enterprises in the Middle East are amongst the world's most confident, with 49 percent reporting a positive economic outlook for the next six months.

Not only that, but the report also stated that half of all regional SMEs were looking to increase capital expenditure (capex) by the end of the year. All over the region, companies reported a positive outlook with Saudi Arabia second in overall global rankings, pipped by Vietnam. For the first time, the data monitor also included information from the UAE.

The Middle East region scored higher than the aggregate scores for emerging markets, developing markets and the overall global figure, for the second time.

Bi-annual monitor

The HSBC Small Business Confidence Monitor happens every two years and gauges the outlook of SMEs on local economic growth, investment plans, recruitment and future plans. It is the largest survey of its kind, questioning more than 6300 SMEs across 21 markets in Asia, the Middle East, Europe, North America and Latin America.

Saudi Arabia registered a score of 145, the highest in the Middle East and second highest in the world after Vietnam.

In Qatar, business confidence among small and medium sized businesses fell from a high of the inaugural results of 159 in 4Q09 to 137 in 2Q10. Monitor newcomer UAE scored 120, which puts it in line with other emerging markets while Egypt maintained its position between the global and developed markets with a score of 116.

Speaking to Arabian Business about the report, Simon Vaughan Johnson, Head of Commercial Banking, HSBC Mena said, "These results demonstrate that confidence remains steady amongst SMEs in the MENA region, and I'm delighted to see the Middle East remain one of the top regions surveyed.

"Across the region, our business banking teams are reporting a return to confidence after an uncertain 2008 and 2009. The data shows that regional SMEs are increasingly looking at international trade for new markets and opportunities, with the majority of Qatari and Saudi Arabian SMEs reporting international activity.

"Increasingly, these companies are looking east for business development, with China leading the rankings as the first international market of choice for the UAE, Saudi Arabia and Qatar; and third highest market for Egyptian SMEs."

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