The regional head of corporate banking at HSBC, Dan Hewlett, confirmed the optimism of the BoE’s view on the UAE post covid-19 economy performance and said in a statement to “Al Bayan” magazine that the UAE economy is the most Shocks absorbing in the gulf region. even with oil remaining at low levels for a longer period, and this was all possible due to diverseeconomy plans, the significant contribution of small and medium companies, and the strength of the UAE's sovereign reserves as well.

Hewlett pointed out that there are indications of an economic recovery beginning in the country with the return of some vital economic activities ,an important increase in levels of investment, acquisition and export in global markets such as Asia and Europewhich will have a positive impact on the UAE economy , being a major trading partner for these markets.

The results of a recent global study conducted by the bank where 100 UAE companies took part, recently revealed that only 1% of the companies in the country felt that their survival was threatened in the long term, while less than one-fifth (only 18%) in the country expressed their willingness to act Quickly to ensure the stability of its business beyond Coved 19.

Hewlett stressed during a result-review online conference in Dubai yesterday that UAE companies have a strong spirit in entrepreneurship, which is reflected in their adaptation to the situationof the pandemic, the fast change of work style and planification plans, indicating the need for the private sector in the UAE to continue making efforts to make business more flexible and faster to adapt and deal with challenges.

Drive to change

Hewlett pointed out that the "Covid 19" pandemic has turned as a driver of change for many companies in the UAE and motivated them to adjust their work methods, especially with regard to technical investment, sustainability and the ability of suppliers in supply networks, noting that companies in the UAE felt the impact of the Corona virus pandemicCovid 19 and realized the need to make major changes in the way the business is done, to be more flexible in dealing with similar challenges in the future.

Security of the supply network

According to the study conducted by the World Bank, 51% of companies in the UAE felt stable and strong in their business and had to make few adjustments, while 25% of companies in the UAE faced some challenges but were confident  and sure about their survival, while 5% of companies faced difficulties to cope with the situation and realized the vital need to completely change their ways of work to make their business survive .

Hewlett added: The supply network became an attention and a major focus for many companies in the Emirates during the past few months.

The study revealed that 72% of companies in the UAE have expressed their intention to adopt the necessary measures to ensure the safety of their supply networks during the next upcoming years, compared to the 67% of the global ratio of the rest of the world markets.

38% of the UAEcompanies that were surveyed said that the most important measure they will take in the field of supply network security is to identify their important suppliers.

The covidcrisis forced many companies in the UAE to reconsider the investment strategy specially in the technology field, as 66% of the companies strongly agreed that the difficult circumstances showed how to make better use of technology to improve and secure business.

64% of companies in the UAE plan to invest in technology during the next five years, while a quarter of them view technology as a top priority.

The importance of sustainability

According to the study, the Corona pandemic crisis showed companies in UAE the importance of sustainability more than ever. 95% of companies in the UAE have agreed on the importance to reassess their business and build it on stronger environmental bases.

Companies believe that the three most important aspects that will directly affect their business are air quality, sterilization, and pollution (46%), digital technology (44%), and the circular economy (43%).

Corporate support

Dan Hewlett, Regional Head of Corporate Banking at HSBC said: “Small and medium-sized companies are a very important component in diversifying country economies and creating jobs, especially in the UAE, which has spared no effort in providing support to these companies and We at HSBC believe that a large part of these companies will be big companies in the future, and therefore there are major companies that invest in it,and we are glad partners in the journey of these companies.

The HSBC global study in 14 countries showed that many companies in the UAE (79%) were affected by the repercussions of the Corona pandemic, compared to 72%, which represents the rest of the companies in all other global markets covered by the study.