SMEs in the country look to an ‘e-future’

RITIKA SHARMA / Emirates Business

As the Small and Medium Enterprise (SME) industry takes center-stage
in the economy of the UAE, entrepreneurs are looking for fresh territories to venture into and start their
businesses.
According to a recent report that accessed the industries explored by budding entrepreneurs in the GCC region, Finance and Technology (Fintech) and e-commerce have emerged as two crucial domains, which promise to generate the highest Return on Investment (ROI) for SMEs.
The trend is evident especially in the UAE market, which has recently seen an over 24 percent surge in the number of businesses in these particular segments.
“Based on the investment activities we are involved in, Fintech, e-commerce and new media are the clear-cut future of SMEs in the country and in the wider region. However, still there is a lot of scope that can be explored in the digital space,” said Fadi Ghandour, founder and CEO of Aramex, the leading logistics and transport company in Middle East.
Among others, e-commerce has emerged as one of the fastest growing industries in the region. According to the estimates, with over 260 million internet users, Middle East e-commerce market is expected to reach $51.4 billion by 2017.
“As industry experts mention about a slowdown in retail, it is important to recognise that the e-aspect of retail —e-commerce — which is undergoing a boom. Most of these businesses began as SMEs and are now flourishing at a fast pace. These SME businesses are the trendsetters and companies across the globe are following their business models,” added Ghandour, who was speaking during a recent discussion, organised by Dubai Business Women Council.
New business players are also
disrupting the banking and finance sector with more and more Fintech SMEs springing up.
As technology and ease become the focal point for finance industry, experts believe there is a lot for scope for Fintech SMEs in UAE, due to highest rate of smartphone penetrations in the region.
“People are rethinking the banks. They want to know what all can be done with their accounts and credit cards without going to the branches. Fintech is not just the future of banks it is rather the future of entire money system,” said Ghari Sengusha, a Dubai-based entrepreneur who is working to develop a new Bitcoin technology, told Emirates Business.
UAE has seen a range of start-ups mushrooming in recent years that are offering innovative alternatives to the traditional banks and experts opine this is industry is poised to grow further.