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HSBC logo is seen on a bank branch in the Financial District in New York, US, Aug. 7, 2019. REUTERS/Brendan McDermid/File Photo/File Photo
DUBAI, June 27 (Reuters) – HSBC (HSBA.L) said Sunday it is committing $5 billion in loans to “strong” companies in the United Arab Emirates to help fuel the Gulf country’s growth plans.
The UAE’s economy suffered in 2020 as vital sectors such as tourism and hospitality were crippled by the COVID-19 pandemic.
Corporations, government-affiliated institutions, as well as the sovereigns Abu Dhabi, Dubai and Sharjah, have borrowed billions to support their finances and spending.
“Our research clearly indicates that companies in the UAE are ready to invest internationally and sustainably,” said Abdulfattah Sharaf, HSBC’s CEO for the UAE and head of international.
“Our US$5 billion commitment, between now and 2023, will support plans strong companies must have to enter new trading markets, redesign their supply chains, innovate and play an active role in shaping the future growth story of the country,” Sharaf added in a statement.
The British bank’s commitment marks 75 years since HSBC opened its business in the UAE, a major oil producer and center of trade and trade.
HSBC said the Navigator 2020 report found that 81% of UAE companies are expected to increase capital spending by the end of 2021, compared to 66% globally.
Reporting by Yousef Saba; Editing by Alexander Smith
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