The closing of the accounts has sparked “fierce customer anger”, according to a story carried on the English-language website of Al Arabiya, a Saudi-owned television channel which broadcasts in Arabic out of offices in Dubai.
“Businesses subject to account closures have been given just 60 days’ notice to find alternative banking services, and some estimate it will cost them more than AED8,000 [$2,178 , £1,412] in fees to switch accounts,” the report said.
In a statement, HSBC noted that it had, as has been reported, been conducting a review of all its businesses since May 2011, "to meet its goal of streamlining the business and improving the return on capital", and that as part of this review, it had decided to close some of its business banking accounts in the UAE.
However, "the bank remains strongly committed to the SME segment in the UAE," the statement added.
In particular, HSBC said its review was looking to identify SMEs that operate across borders, or intend to in the near future, since "international business is at the heart of HSBC’s strategy, [and] these are the customers whose needs it is best-placed to address".
"By concentrating resources on this [international business] segment, the bank’s aim is to give its customers greater support, including access to a relationship manager," it added.
"Not only will they benefit from a personalised service and expertise in cross-border commerce, but it will help HSBC ensure that it meets its increasingly rigorous compliance and risk standards."
The statement did not say how many SME accounts in the UAE it planned to terminate.
‘£1bn in savings’ sought
In March, as he was unveiling the company’s 2012 results, HSBC chief executive Stuart Gullilver said he wanted to find a further $1bn in annual savings in 2013, as the bank continued its global strategic overhaul. Two months earlier, HSBC Bank International revealed it had completely closed down its Isle of Man and Guernsey centres for international clients based overseas, after having surrendering its branch licences in both crown dependencies.
