UAE SMEs: Simple Tools Win

For years, spreadsheets have quietly powered small businesses. In the UAE, that hasn’t really changed - even as the country pushes forward with large-scale digital transformation.

A recent study by Fortis, based on responses from over 130 SMEs, highlights an interesting reality: despite billions being invested in modern tech, many businesses are still sticking with Excel for their day-to-day operations. In fact, about 64 percent of SMEs said they rely on spreadsheets to manage core functions. That’s higher than the adoption of accounting software, CRM tools, delivery platforms, or even POS systems.

This stands in contrast to the broader economic picture. The UAE is home to more than 557,000 SMEs. They make up nearly all registered businesses in the country and contribute over 60 percent to the non-oil GDP. They also employ the majority of the private sector workforce. On paper, it’s a highly dynamic ecosystem, backed by strong government support and significant investment in digital infrastructure.

But on the ground, things look a bit different.

Many smaller or traditional businesses continue to depend on spreadsheets and older systems. The reasons aren’t surprising - limited access to funding, gaps in infrastructure, and in some cases, hesitation around adopting new technology all play a role.

Fortis’ field research, which looked at sectors like F&B, car washes, and laundries, found a clear pattern. Businesses are comfortable using POS and payment systems where customers are directly involved. But when it comes to internal operations - especially inventory - things often shift back to Excel. More than 60 percent of respondents said they manage inventory outside their main systems.

There’s a practical reason behind this.

According to Fortis’ Chief Marketing Officer, Ahmed Sameh, many businesses have built their own customised spreadsheet workflows over time. These are tailored to how they operate, and they work. For many owners, switching to software that feels rigid or overly complicated doesn’t make sense.

Inventory modules, in particular, were often described as difficult to use. They require training, regular updates, and don’t always deliver immediate value. Excel, on the other hand, is familiar. It’s flexible, easy to tweak, and gives business owners a sense of control.

That said, the limitations are clear - especially for larger operations. Businesses handling higher volumes reported issues like mismatched data, manual errors, and time-consuming reconciliation. Without real-time visibility, small problems can take longer to fix.

For smaller businesses, though, the trade-off seems acceptable. Many said spreadsheets are still “good enough” for their current scale.

What this points to is not a lack of awareness, but a gap in how SME software is designed. Tools often don’t align with how these businesses actually function on a daily basis.

As the UAE continues to push its digital agenda - with goals like reaching one million SMEs by 2030 and rolling out changes such as e-invoicing and corporate tax - the pressure to modernise will increase. But adoption will likely depend less on adding features and more on simplifying them.

There’s a clear opportunity here. Businesses are looking for tools that combine the ease and flexibility of spreadsheets with the benefits of connected systems. The kind of software that doesn’t require a steep learning curve, but still improves efficiency.

In many ways, Excel has already set the benchmark - not because it’s advanced, but because it works the way small businesses need it to. The next wave of SME technology will need to do the same, just with better integration and fewer manual steps.