Entrepreneurship and SMEs: future in the UAE
March 25, 2019
Since 2002, SMEs have been in the forefront to mobilise support for entrepreneurial ideas and initiatives from the government and the private sector in the UAE. Many entrepreneurs have benefited from start-up, advisory and development services which the UAE offers.
SMEs are the backbone of any economy, accounting for more than half of workforce employment whilst heavily contributing to a country’s GDP.
With the Expo 2020 Dubai and a mix of ambitious projects offering a wider field for innovative products, services and technologies, Dubai is implementing programmes aimed to bridge gaps in terms of knowledge, skills and capital in the SME sphere.
As of today, 95% of the business in the UAE are SMEs and 52% employment provided by SMEs. The Gross Domestic Product (GDP) by SMEs in the United Arab Emirates is currently 47%, which is expected to expand to 70% by 2021.
In the next few years, entrepreneurs and SMEs in Dubai will witness varied initiatives aimed to support and sustain enterprise growth. The UAE government has institutionalised numerous initiatives to support SMEs to grow and succeed.
The Mohammed bin Rashid Fund of Dubai SME has provided AED 68 million in financial assistance to SMEs and the Hamdan Innovation Incubator alone has helped 571 projects take off. The Dubai SME 2021 Plan focuses on:
- Increased entrepreneurial activity
- Enhanced SME competitiveness through innovation
- Productivity and quality
- Stronger SME integration with high-growth economic opportunities
The Abu Dhabi Ghadan 2021 plan and Abu Dhabi Vision 2030 plan aim to stimulate investment, creating a sustainable economy and economic growth and innovation which focuses on business and investment, society, knowledge and lifestyle. A Dh50 billion three-year development accelerator programme for Abu Dhabi has been approved out of which AED 20 billion will be allocated to the 2019development package, which was announced by Abu Dhabi’s Crown Prince Sheikh Mohammed bin Zayed.
SMEs have unprecedented opportunities globally, with services and trade increasingly dependent on global value chains and intelligent technologies improving service efficiencies. Dubai for example, has embraced artificial intelligence, blockchain and the Internet of Things, in its race to become one of the best Smart City's in the world.
At New Horizons Business Consultants, we would like to help sustain stakeholder engagement to help the SME community capitalize on the opportunities ahead. Why not benefit from the above by setting up your own SME business in the UAE?