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The majority (86%) of UAE entrepreneurs are actively expanding internationally or operating beyond their immediate borders, according to HSBC’s first Global Entrepreneurial Wealth Report (pdf). That places Emirati entrepreneurs second only to entrepreneurs in Hong Kong in terms of appetite for international expansion. The report surveys entrepreneurs in nine markets — France, Hong Kong, India, China, Singapore, Switzerland, the UAE, the UK, and the US — with investable assets ranging between USD 2-20 mn.
HSBC surveyed entrepreneurs to gauge their perspective in three areas: International business prospects, strategies for business exit, and the intergenerational transfer of wealth.
Personal wealth creation and education drive interest in expansion:Operational efficiency stands out as the primary advantage for conducting business abroad, with nearly 57% of UAE entrepreneurs seeing international markets as a potential avenue to enhance their margins. Almost 55% of UAE entrepreneurs are interested in international markets for their children’s education.
Family businesses are popular in the UAE: Almost 66% of UAE entrepreneurs have familial ties to established enterprises, surpassing the global average and highlighting a prevalence of affiliation with family businesses.
UAE entrepreneurs have the lowest inclination for business exits, with as many as 79% saying they don’t have immediate plans to sell off their businesses, the report says.
Family is a top priority when it comes to succession: Some 42% of UAE business owners are considering transferring their business to immediate family members, while 23% are leaning towards other family members. A mere 8% of UAE entrepreneurs prefer selling off their business to an external buyer.
Over half of UAE entrepreneurs aim to pass on or distribute their wealth to the next generation, while 39% want to use that wealth for charitable and philanthropic purposes, higher than the 29% global average, the report reads. Most surveyed entrepreneurs demonstrated a consistent family-centric mindset, prioritizing the preservation of wealth for future generations.
All entrepreneurs are worried their family members will drop the ball: Surveyed entrepreneurs express concerns about passing down wealth, citing a lack of trust in the next generation’s ability to manage family wealth or business. The UAE and India are specifically worried about the work ethic of future generations.
