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DUBAI / Emirates Business
The introduction of Value Added Tax (VAT) in the UAE has served an opportunity for small and medium enterprises (SMEs) to review their processes and identify opportunities to streamline operations.
UAE’s SMEs are key to driving economic growth, innovation and job creation in the region. According to a new study by MENA Research Partners (MRP), SMEs in GCC region are forecast to grow by 156 percent in next five years, with the sector set to be worth $920 billion. The SME sector in the Gulf will employ 22 million people in five years. While the GCC region accounts for 34 percent of SMEs in the Middle East and North Africa, it has the largest potential for SMEs regionally, the study noted.
“VAT in the UAE was introduced to boost the development of the economy. However, SMEs in the country have also been able to introduce governance in their operations with the introduction of the new tax,†Mohammed Fathy, General Manager of Dubai-based consultancy, Al Dhaheri Jones & Clark.