Alkesh Sharma Emirates Business
Small and Medium Enterprises (SMEs) are emerging as the lifeline of UAE economy. In 2014-15, the country registered its best economic performance in 44 years by growing its Gross Domestic Product (GDP) to AED1.47 trillion, thanks to 60 percent contribution from the SME sector.
Giving a major boost to SMEs, Emirates’ financial institutions, including the major banks, are supporting the sector and entrepreneurs in a big way. Right from providing initial incubation services to offering mentoring, infrastructure and easy loans, these organisations are contributing their bit. In one such latest commitment, Emirates Development Bank (EDB) has pledged a combination of expert business and
, with products designed specifically to help local entrepreneurs and businesses.
“Comprising around 300,000 companies and accounting for 86 percent of the workforce in the private sector, SMEs play a crucial role in the UAE economy. With more challenging economic conditions, it has never been more important to support this sector, which is so important to the future growth and prosperity of our nation,” said Rashid Mahboob, Acting CEO of EDB.
According to the Ministry of Economy, SMEs represent almost 92 percent of the total number of companies in the UAE and provide more than 86 percent of jobs in the private sector.
The growing number of successful SMEs in the Emirates is reflective of the government’s stress on economic diversification and creating a congenial environment for entrepreneurs and the start-ups.