UAE Businesses Thrive Despite Global Conflicts
Manoj Sureka, CEO & Managing Partner at Synergy Fin. Consulting is a seasoned expert in banking, finance, and business funding advisory. He specializes in structuring debt, private credit, and trade finance solutions for SMEs and corporates.
Known for his deep understanding of the subject, Manoj has been instrumental in helping businesses navigate complex financial environments and raise capital even in challenging conditions.
Q: How are global conflicts impacting businesses in the UAE and the wider region?
Ongoing tensions in the GCC are directly impacting trade, logistics, and capital flows.
For UAE-based businesses, we are seeing fluctuations in freight costs along key routes such as the Red Sea corridor and increased insurance premiums for shipments passing through sensitive zones. Sectors like industrial metals, oil derivatives, and food commodities are experiencing price volatility.
However, the UAE’s strategic positioning as a global trade hub and strong connectivity through Emirates and DP World have ensured continuity.
Q: In such uncertain times, how is access to funding changing?
During volatile periods, traditional banks tend to adopt a more cautious approach. Credit underwriting becomes stricter, especially for sectors exposed to global trade risks. At the same time, alternative financing channels are gaining traction. Trade finance instruments like LC discounting, invoice financing, and supply chain finance are being increasingly used to maintain liquidity.
Technology-driven lenders and private credit funds are also stepping in to bridge the gap, offering faster approvals based on real-time data rather than just historical financials.
Capital is always available, but in uncertain times, it flows only to those who are prepared and transparent.
Q: How is technology helping businesses manage risk in a war-influenced environment?
Technology is no longer optional; it is central to survival.
Businesses are now using AI-driven tools to monitor supply chain disruptions, predict delays, and optimize procurement strategies. Financial dashboards provide real-time cash flow visibility, enabling quicker decision-making. The winners in today’s economy are not the biggest businesses, but the most informed ones.
Q: What role does the UAE play as a safe financial hub during global instability?
With strong regulatory frameworks, a stable currency, and investor-friendly policies, the country attracts both institutional and private investors. Free zones like DIFC and ADGM have further strengthened the financial ecosystem.
Q: Are SMEs more vulnerable in such scenarios? How can they cope?
SMEs are typically more exposed due to limited capital reserves and dependency on specific markets or suppliers.
However, they can build resilience through smart financial planning. This includes: Maintaining sufficient working capital buffers, diversifying the supplier and customer base, and leveraging trade finance instead of blocking cash in transactions.
Q: What practical steps should businesses take immediately?
Businesses must shift from reactive to proactive planning. Secure funding lines in advance, even if not immediately required. Regularly monitor cash flow and liquidity positions.
