Swedish companies in UAE upbeat about growth prospects
Mays Ibrahim (ABU DHABI)Seventy-one percent of Swedish companies operating in the UAE view the business climate as good or very good, according to the 2025 edition of the Business Climate Survey for Swedish Companies in the UAE.The survey, released by Business Sweden in the UAE, gathered responses from 46 Swedish companies active on the mainland or in one of the UAE's more than 40 economic free zones.It revealed that 67% of Swedish companies in the Emirates expect their industry turnover to increase, and half plan to increase their investments slightly or significantly in the next 12 months.The report's findings point to the UAE's role as a critical regional business hub, as many Swedish companies use it as a springboard into neighbouring GCC countries, as well as wider markets across the Middle East, Africa and South Asia.Positive sentiment is dominant across businesses of all sizes, especially in the industrial segment with 68% of firms anticipating turnover growth.The key factors behind Swedish companies' success in the UAE include partnerships and relationships, sales competence and cost efficiency.These firms also highly appreciated personal safety, physical infrastructure, and access to quality distributors and service providers in the UAE.Notably, no company reported exposure to corruption, such as fraud or attempts of bribery from public bodies and internal counterparts.Swedish firms have operated in the UAE since the 1960s, with around 200 Swedish companies now present in the market.According to the report, the UAE remains Sweden's largest trading partner in the MENA region.
In 2024, Swedish exports to the UAE grew by 33% compared to the year before, reaching $1.6 billion. Swedish direct investment flows to the UAE also saw a sharp rise to $618 million in 2023.
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