Across MENAT, corporates are reshaping their supply chains, strengthening working capital and deepening links with Asia to navigate trade volatility. Banks like HSBC are supporting this shift through digital trade platforms, structured finance and sustainable supply chain solutions, helping businesses convert shifting conditions into trade growth.
Uncertainty is nothing new for Middle East corporates. From pandemic disruptions and tariff disputes to regional conflicts, volatility has become a permanent feature of global markets. Yet companies remain strikingly optimistic. For example, HSBC’s 2025 Global Trade Pulse shows 94% of UAE firms expect cross‑border trade growth, outpacing global sentiment. This confident outlook reflects experience.
Deyana Cherneva, head of global trade solutions for the Middle East, North Africa and Türkiye at HSBC, says: “Uncertainty and volatility are a business‑as‑usual topic for corporates. We’ve had Covid, geopolitical tensions, and now tariffs impacting the Middle East. Corporate clients have been working on scenario planning and resilience for years, and trade products are exactly the tools to support those efforts.”
Turning volatility into strategy
That resilience now shapes how companies in the region operate. Many are using scenario planning to anticipate supply chain disruptions and to switch routes or suppliers at short notice. Working capital tools, such as receivables finance, supply chain programmes and short‑term trade loans, have become essential to keep cash flowing when markets shift.
The reality is that volatility is not a temporary challenge but a constant feature of today’s markets. “In challenging times, it is even more important to optimise working capital,” Cherneva says. “Structured trade or short‑term lending optimises cash flow at preferential pricing compared with long‑term loans. Clients treat this as an absolute necessity, not a nice‑to‑have.”
One way companies are adapting is by building deeper partnerships across supply chains. “Where a company may have demand markets but no local production, partnerships can fill that gap and keep goods moving,” Cherneva explains. These relationships are particularly valuable as supply chains adjust to tariff disputes and changing production hubs.
Alongside these partnerships, structured trade finance is gaining momentum. While long familiar to corporates in North America and Europe, many Middle East companies are adopting solutions such as contract monetisation and tailored receivables programmes for the first time. These allow businesses to convert predictable cash flows, such as lease or service contracts, into immediate liquidity, thereby strengthening their balance sheets and enabling them to reinvest in growth.
“Structured trade is helping corporates go beyond basic lending into solutions that are directly linked to their commercial flows,” says Cherneva.
A flagship example is Saint‑Gobain’s sustainable supply chain programme, delivered in partnership with HSBC. It enables the building materials company’s suppliers, largely SMEs, to access preferential financing based on Saint‑Gobain’s credit profile, helping them secure capital they might otherwise struggle to obtain. The programme also incorporates sustainability criteria, rewarding suppliers that meet environmental and social standards.
“Anchor buyers can support their suppliers, who in turn can secure financing on better terms, while connecting working capital management with broader ESG goals,” Cherneva says. “It strengthens the whole ecosystem and aligns financial incentives with sustainability priorities.”
Asia connections gather pace
Those capabilities are proving critical as trade surges between the Middle East and Asia, providing access to fast-growing consumer markets and new sources of technology and investment capital.
For example, economic ties between the UAE and China have expanded dramatically, rising from just US$2bn in 2000 to nearly US$100bn in 2023, according to data published by the Emirates News Agency (WAM). In the first nine months of 2024, trade between the two countries reached US$74.5bn and is projected to reach US$200bn by 2030. Investment flows are also growing, with Chinese investment in the UAE increasing by 16% and UAE investment in China rising by 120%.
“The dynamics between MENAT and Asia are booming, particularly in consumer goods, clean energy and electric vehicles,” says Cherneva. “China is one of the world’s leading solar panel producers, and we are seeing strong flows into the UAE’s clean energy market. Green automobiles are another growing segment, with Chinese brands increasing their presence in the region. And of course, oil and gas continues to be a core trade driver.”
HSBC’s presence in both markets is an advantage. “We have deep relationships and decades of experience in both China and the Middle East, which allows us to connect clients across these corridors quickly and effectively,” Cherneva posits.
The bank’s renminbi (RMB) capabilities are a further differentiator. HSBC recently issued the first RMB‑denominated guarantee in the Middle East, reflecting growing interest in settling trade in China’s currency. “We are supporting customers with RMB products and are looking at how we can extend that capability across the region,” Cherneva adds.
Digital tools to close funding gaps
Supporting these expanding trade flows requires faster processes and broader access to finance. These needs are increasingly being met through digital solutions. “Digitalisation is not an enabler anymore. It is a necessity,” Cherneva says. “Clients demand faster turnaround times, paperless processes and user‑friendly infrastructure.”
The HSBC Trade Solutions (HTS) digital trade platform is one response, providing straight‑through processing and paperless documentation. It supports solutions such as HSBC TradePay, a digital trade finance tool that enables real-time invoice settlement.
“With TradePay, customers can upload invoices and have them paid instantly, with full notification and reporting,” says Cherneva. “It optimises their finance functions and reduces errors, allowing them to focus on their core business.”
This immediacy is crucial in industries with tight cash cycles or suppliers that rely on prompt payment to maintain operations.
Digitalisation also plays a crucial role in addressing one of trade finance’s biggest structural challenges: funding SMEs that lack extensive credit histories. Supply chain finance programmes enable smaller suppliers to leverage the creditworthiness of anchor buyers, thereby improving their access to capital at competitive rates. For MENA corporates sourcing from or selling into Asia, these structures are especially valuable, as they support supplier networks in markets where smaller producers are prevalent and help ensure supply chain continuity.
These supply chain finance structures are increasingly being designed with both sustainability and liquidity in mind. As corporates look to future‑proof their supply chains, sustainability criteria are starting to shape how programmes are designed and how suppliers are rewarded.
“Sustainability criteria are starting to shape supply chain finance structures and support responsible business practices,” Cherneva says. “That is an exciting development for the region and something we expect to see much more of in the coming years.”
Seizing the moment
Looking ahead, Cherneva highlights three areas of opportunity: growing intra-MENA connectivity, the region’s position as a bridge between East and West, and the rapid advancement of digital platforms and technology. “The region is perfectly placed to seize these shifts,” she says.
MENAT’s growing economic strength is expected to amplify these opportunities, but success will depend on how financial institutions position themselves. Cherneva sees HSBC shifting its focus from transaction execution to advisory services and co-creating solutions with clients. “The future will be about supporting clients in optimising their operations and building the solutions that keep them competitive,” she says.
With strong bank support, modernising supply chains, and a growing focus on structured finance, MENAT businesses are better positioned to manage volatility and capitalise on opportunities. “With the right planning, partnerships and innovation, businesses can turn uncertainty into an opportunity for growth,” Cherneva concludes.