LONDON, August 21, 2012 /PRNewswire/ --
Over half of a 1 billion AED fund aimed at small and medium sized enterprises has been allocated just three months after its launch, according to HSBC Bank Middle East. 57% of the HSBC International Trade SME Fund has been awarded to UAE businesses since it was announced on 15 May 2012. The Bank has allocated the Fund at a rate more than one and a half times faster than in previous years. This year is the third tranche in HSBC UAE's flagship SME Fund programme.
Commenting on progress, Rana Al Emam, Head of Business Banking, HSBC Bank Middle East Limited, UAE said: "We are very excited to announce that over 570 Million Dirhams of the International Trade SME Fund has been allocated. Focusing the Fund on businesses with cross border trading requirements is vital given the growing number of businesses positioning themselves to take advantage of international trade corridors to grow and succeed. The Middle East is an historic trading hub for East to West trade flows. With the centre of the economic world progressively moving east - these 'trade corridors' have emerged even stronger than ever."
88% of the Fund allocated to date has been awarded to businesses seeking to trade internationally. Trade continues to be a strong area of focus for HSBC both regionally and globally. A trade bank by origin, HSBC believes that it can continue to add value to this segment through leveraging this strength, its global footprint and extensive expertise.
"Every application is assessed thoroughly on a case by case basis. Looking at the breakdown so far, 69% of the Fund allocated so far has gone to customers that did not previously borrow from HSBC, while the remaining applicants from our existing customer base. In addition, I am pleased to say that we are very much on track to fulfilling our commitment of allocating 30% of the total Fund to Emirati owned businesses" added Rana Al Emam.
Andreas Iliovits, Founder and Managing Director of Mosart Marble & Mosaic International, an HSBC customer who has benefitted from this year's Fund commented:
"Following a competitive bidding process, we were awarded a contract to supply and install stone works for the external cladding for the Presidential Palace in Abu Dhabi. This has been marked as one of the region's most prestigious projects and will be a source of pride for the country.
"Given we have always considered HSBC to be a strong, reliable support who really takes the time to understand our business, we turned to the Bank's HSBC International Trade SME Fund to help us address the challenging requirements of the project.
"HSBC came through for us, and we are now in a position to be able to import the latest technology needed for the job from Germany and Italy - as well as the necessary materials from Turkey on an ongoing monthly basis. Not only that, but having a reputable bank's support further raises our credibility and cements our ongoing working relationships with suppliers.
"Winning this project, backed by the strength of HSBC's support, has catapulted us to being a robust and international player able to carry out large value contracts in the UAE, regionally and globally".
New customers seeking to make an application can contact their nearest branch, visit the HSBC business banking website or call our call centre. Existing customers can reach out to their Relationship Manager as well.
Notes to editors:
HSBC Commercial Banking
HSBC Commercial Banking (http://www.hsbc.ae/1/2/) serves more than 3.5 million customers, from small enterprises to large multinationals, in over 60 developed and emerging markets around the world. Whether it is working capital, trade finance or payments and cash management solutions, we provide the tools and expertise that businesses need to thrive. With a heritage stretching back nearly 150 years, and a network covering three quarters of global commerce, we make HSBC the world's leading international trade and business bank.
For more information see http://www.hsbc.com/1/2/business-and-commercial
HSBC in the MENA Region
HSBC is the largest and most widely represented international banking organisation in the Middle East and North Africa (MENA), with a presence in 14 countries across the region. HSBC has operations in the United Arab Emirates, Egypt, Qatar, Oman, Bahrain, Kuwait, Jordan, Lebanon, Pakistan, Algeria and the Palestinian Autonomous Area. In Saudi Arabia, HSBC is a 40% shareholder of Saudi British Bank (SABB), and a 49% shareholder of HSBC Saudi Arabia for investment banking in the Kingdom. In Iraq, HSBC holds a majority shareholding in Dar Es Salaam Investment Bank. HSBC also maintains a representative office in Libya.
This presence, the widest reach of any bank in the region, comprises some 273 offices and around 12,000 employees. In the full year 2011, HSBC in the MENA region made a profit before tax of US $1,492 million.
SOURCE HSBC AE