Companies Look at UAE and India for Trade Activities

India, which is one of the fastest-growing large economies and the world’s most populous market, has emerged as the top destination for more than 40% of corporates planning to increase trade and manufacturing activities, Standard Chartered Bank said.

In its report entitled “Future of Trade: Resilience,” Standard Chartered also said that the UAE has been another economy attracting attention, with corporates in nearby markets intending to expand trade and manufacturing activities. These corporates also remain committed to the US and Mainland China – key nodes in the global supply chain.

The report was based on the latest research by Standard Chartered, collected from July to early August 2025, and was based on a survey of 1,200 corporate leaders from 17 markets across four sectors.

It showed emerging technologies and global economic growth patterns are equally critical: 53 per cent of corporates rank these three factors as the top strategic drivers of global trade over the next three to five years.

“The Intra-regional trade is set to rise as well, with Malaysia and Indonesia next in line, potentially strengthening ASEAN’s regional integration,” the report said.

While tariffs remain a top concern for corporate leaders, the emergence of new technologies and global economic growth are also highlighted as equally important drivers of cross-border activity that keep respondents awake at night.

These three areas of concern underline the complexity facing corporates, that there is no dominant factor that will drive the future of trade. But challenges could also bring opportunities, to boost efficiency through digitalisation and capture opportunities, for example in sourcing and manufacturing in emerging markets.

Cost of Resilience

Almost all corporates are concerned about rising costs resulting from realigning supply chains, geopolitical uncertainty and changes to tariffs. As many as 62% of corporates expect cost increases by 5% to 14% in the next three to five years.

To be resilient, corporates intend to adopt a proactive stance, responding in several ways. And though not new, the top three strategies identified, adjusting treasury management strategies, increasing digitalisation efforts and realigning supply chains, reflect the multi-faceted environment. The market and sector findings in this report locate opportunities, and inform considerations and priorities.

The vast majority of corporates reported they were either already using a supply chain finance (SCF) platform or plan to adopt one within two years, reflecting recognition of the efficiencies created by such tools.

Giving corporates the ability to finance suppliers further down a supply chain could create a more inclusive trade ecosystem – addressing the longstanding trillion-dollar trade finance gap, the report said.

Key Drivers of Global Trade

Rapid changes to the global tariff regime, with tariffs implemented on many markets over the past few months, are a key concern for corporates, given their impact on costs and supply chain disruption.

Just over half (53%) of corporates rank tariffs in the top three issues expected to shape globe trade in the medium term – with 20% ranking tariffs as their primary concern. However, this concern has eased (from 27%) when compared to the results of a pulse survey that the bank conducted in April.

Smaller and more trade-dependent markets were understandably more concerned about tariffs, with almost two thirds of respondents in Malaysia and Vietnam (62% and 60% respectively) listing tariffs among their top three concerns – a reasonable reaction considering the US is the third-largest and biggest market, respectively, for exports from these two countries.

The rise of AI, alongside the growing momentum around digital assets, featured significantly among respondents, with 53% seeing emerging technologies as important as trade tariffs in helping to drive the future of trade.

Respondents in Nigeria, in particular, were highly focused on emerging tech, with 74% citing it among their top three issues. Respondents in the UAE and Saudi Arabia also rank this highly, with over 60% adding this to their top three drivers.

Nigeria, designated Africa’s Digital Trade Champion by the African Union, is investing in emerging technologies such as AI and blockchain, while the UAE and Saudi Arabia have government-led efforts to enhance the countries’ advanced manufacturing prowess in areas like robotics and AI.

This could help to diversify their economies, remove trade barriers and unlock new opportunities for exports, the report said.

Despite warnings of a slowdown in global growth over the coming years due to tariffs, inflation and geopolitical tensions, Asian markets, which contribute over 60% of global growth, are expected to remain resilient.

In India and Mainland China, 60% and 59% of corporates respectively cite global economic growth among the top three factors defining the future of trade – higher than the survey average of 53%, the report noted.