UAE SMEs Signal Growth Amidst Challenges
In a revelation that might change perceptions of the UAE's economic landscape, a report has emerged, shedding light on the state of SMEs post-pandemic. Conducted in collaboration with RFI Global, the report unveils a narrative of resilience and growth among UAE SMEs, painting a picture of prosperity amidst challenges.
Among the striking findings is the revelation that SMEs in the UAE have transitioned from mere resilience to a state of prosperity, with a staggering two out of three expressing optimism about the future business climate. This optimism is reflected in an overall confidence index score of 61, indicating a buoyant outlook despite the trials of recent years.
Diving deeper into the findings, it becomes evident that the buoyancy extends across various sectors. Industries such as Construction & Manufacturing, Public Services, and Transport showcase growth, with increases in revenue pushing them forward. This surge in revenue, particularly in Construction & Manufacturing, highlights the sector's resilience and adaptability in the face of adversity.
However, the report does not shy away from highlighting the challenges looming on the horizon. Rising labor and operational costs, coupled with the impending introduction of corporate tax, pose hurdles for SMEs. Moreover, the cost of capital and credit adds another layer of complexity to the equation, requiring sustained support from financial institutions and government entities alike.
Raheel Ahmed, Chief Executive Officer at RAKBANK, emphasised the role of SMEs in leading economic vitality, stating, "Small and Medium Enterprises are the backbone of every healthy economy, and this is especially true in the UAE." Ahmed's statement underscore the importance of empowering SMEs through actionable insights and support mechanisms to favour continued growth and success.
Dhiraj Kunwar, Managing Director, Business Banking, emphasised the report's potential to empower SMEs, stating, "We trust that this report will bring genuine value to small and medium enterprises who are seeking out credible content and data points to align their business strategy."
Despite the challenges, the report paints a picture of optimism and resilience, with SMEs embracing innovation and expansion. The need for financial solutions and advisory services emerges as a common thread, highlighting the indispensable role of banking support in navigating uncertain terrain.
As the UAE move towards economic recovery and growth, the insights gleaned from this report serve as a compass, guiding SMEs and stakeholders alike towards a future of prosperity and resilience in the face of adversity.
