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UAE Supply Chains – Networks of Tomorrow

Supply chain issues around the world have prompted businesses to adjust their strategies and adapt their business models to ensure greater resilience and flexibility in their operations. As a global logistics hub, UAE corporates are investing in improving their overall supply chain sustainability to navigate new market conditions.

In HSBC, we are focusing on discovering the latest trends of supply chains and the drivers of change, and how corporates are financing their trade, managing risk, and streamlining payments to achieve commercial success.

This is why we launched the HSBC Supply Chains Research-Networks of Tomorrow in the UAE to provide you with empowering insights. We spoke to decision makers from 68 organizations across the UAE from August to October 2022 to find out how they are reshaping their supply chains.

The UAE has proven its resilience as a financial, manufacturing and trading hub, emerging from the pandemic in a position of economic strengths. Global trade patterns remain in a state of flux and navigating new market conditions will require resilient and sustainable supply chains.

Chaker Zeraiki | UAE Head of Trade & Regional Head of Business Development MENAT, Global Trade and Receivables Finance, HSBC

Shifting supply chain strategies

The factors influencing supply chains in the last year

Inventory management

85%

are holding excess stock due to the logistical challenges

Supplier relationships

63%

are planning to reduce their supplier base in the next 12-24 months

Risk management

52%

view currency risk as the key supply chain management cost concern

Navigating new market conditions

How external factors are impacting risk and financing across supply chains

Trade finance

62%

are funding their supply chains using inventory financing

Digital payments

42%

pay their suppliers via electronic bank transfer or via purchase order

FX solutions

85%

will use forwards to hedge FX risk in the next 12-24 months

Ensuring supply chain resilience

How corporates are laying the foundations for future supply chains

Digitisation

46%

are looking for bank support to better visualise transactions across their supply chains

Sustainability

81%

are investing to make their supply chains more sustainable

Sustainable policy implementation

25%

have implemented measurable policies to require their suppliers to adhere to certain sustainable metrics

How we can help

Supply Chain Finance

Managing your supply chain

Gain complete visibility and control of your supply chain and transactions

International Payments & FX Management

Further insights

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Navigating Supply Chain Disruptions

Analysts and industry experts discuss how businesses can navigate shipping challenges and component shortages in a HSBC webinar.

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Best strategies to mitigate supply chain disruption

Vivek Ramachandran, head of global trade and receivables finance at HSBC, shares his insights on how companies can futureproof their operations against supply chain challenges and key opportunities for businesses in the coming year.

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Trade Academy

HSBC's Trade Academy aims to share the insight and knowledge of our trade experts, to help your business trade effectively abroad.

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