The impact of SMEs on the UAEs economy
December 10, 2018
You’ve had your "eureka moment" and have decided to setup your own company. What are the next steps? And how do you turn your ideas into your very own business? Perhaps you should look at the UAE as a business-friendly hub to setup your business, rather than Europe? What would make sense from a tax perspective? Where should I start?
There are many reasons to start your own business. You may yearn for greater autonomy or flexibility at work, or you might simply have a great idea to bring to life. Small and medium enterprises (SMEs) are viewed as the ‘engine’ for economic growth and a vital contributor to an economy’s GDP. They are a primary source of entrepreneurship, innovation and employment creation.
According to Ministry of Economy, the SMEs sector represents more than 94 per cent of the total number of companies operating in the United Arab Emirates and provide jobs for more than 86 per cent of the private sector's workforce. In Dubai alone, SMEs make up nearly 95 per cent of all companies, employing 42 per cent of the workforce and contributing around 40 per cent to Dubai's GDP.
The UAE Government has an ambition to enhance the contribution and performance of the SME sector by establishing initiatives and programmes to help with sources for funding SMEs.
For all the advantages of working for yourself however, there are as many challenges. It is therefore essential to be armed with knowledge, valuable and reliable contacts and patience. Let NHBC be your guide and give your small business the best chance for success!