Saudi Arabia's smaller businesses are among the most confident in the world, according to a new survey by HSBC, SABB's global banking associate. HSBC's “Global Small Business Confidence Monitor”, a study of more than 6000 enterprises in 20 key markets, showed that Saudi Arabia's smaller business sector was especially optimistic about, growth prospects for the Saudi Arabian economy, increasing capital expenditure in their own operations, enlarging their workforce, and expanding their international business. The survey confirms the results of another HSBC study of business confidence among leaders of larger companies in the region which was published last month. Saudi Arabia came out top in that poll. Of the 300 Saudi companies participating in the new survey, 86 percent see the Kingdom's economy growing at or above the current rate, with more than half of those predicting growth of at least 4 percent over the next 12 months. Only 14 percent believe the economy could slow down. In addition, more than half of those companies involved in cross-border and international trade believe that this part of their business will grow over the next 12 months, particularly with the rest of the Middle East, South East Asia and Europe. Fewer expect trade with China and India to expand as fast. - SG Across the region, a growing proportion of small businesses are optimistic for their prospects in 2010 signaling increasing capital investment and recruitment. Qatar business confidence was the highest at 159 points followed by Saudi Arabia at 125 points and Egypt at 110 points. Globally, the SME indices tracked by HSBCH in most countries and territories hold a positive outlook, with the Middle East at 125, Latin America at 118, the US and Canada at 107 and the UK at 101. France is just below neutral at 94. But emerging markets in Asia, the Middle East, Latin America and Eastern Europe are significantly more optimistic than the developed markets of the US, Canada, the UK and France, with an average index of 121 versus 106. The semi-annual HSBC Small Business Confidence Monitor gauges the six-month outlook of SMEs on local economic growth, capital investment plans and recruitment. This was the first time that Middle East countries were included in the list of 20 markets, capturing the views of more than 6,000 SMEs in Asia, the Middle East, Europe, North America and Latin America - the largest international survey of its kind. The results were used to calculate an index ranging from 0 to 200 where 200 represents the highest confidence level, 0 represents the lowest, and 100, neutral. The survey was conducted in October and November 2009 by research agency TNS. Nicholas Levitt, regional head of Business Banking HSBC said: “Confidence levels appear to be back to pre-financial crisis levels. The Middle East outlook correlates strongly to the global emerging market outlook, and as a major international trading hub, the region is well-placed for future growth.” Forty seven percent of the region's SMEs expect local GDP growth to increase over the next six months. Thirty six percent expect the pace to remain the same, and only 17 percent expect growth to slow. On capital expenditure, Mideast region is the second most confident region, after India when it comes to investing in their own businesses in 1H10. Forty seven percent are planning to increase their capital expenditures, 41 percent say they will maintain current levels and only 11 percent are planning reductions.
