Scope of Business Opportunities for SMEs in UAE in 2017
- July 19, 2021
- Posted by: axiom_admin
As we step into 2017, Axiom Mark’s Business Consultants analyze the economic growth of UAE in 2016 and bring to you a comprehensive report of the various scope of Business Opportunities in 2017. Small and Medium Enterprises (SMEs) have been key factors that have accelerated the economic development of UAE creating a sustainable economic diversity across various segments and industries like Finance, Telecom, Retail, Real Estate, Automobiles, Food, Media etc. With the wave of Expo 2020 building momentum and the decline in the Oil and Gas Sector, more number of people have chosen to become startup Entrepreneurs in the last year.
SMEs have been the backbone of current economic development of UAE accounting to 94 % of all companies in the Country and 90% of the Workforce. In 2016 alone, there as an estimated 400,000 SMEs across the Country and the UAE Ministry of Economy cites that, collaboratively SMEs contribute 60% of the GDP (estimated to increase to 70% by 2021). Setting up pace for Expo 2020 which is expected to bring together more than 180 nations and 25 million people across the world, the UAE Government and policy makers have brought together various policies and regulations to create a conducive environment for SMEs to perform well.
Expo 2020 has announced that 20% of the Expo’s total direct and indirect spend accounting to more than Dh5 billion in contracts will be awarded to Small and Medium Scale Enterprises (SMEs) both locally and Internationally. This widely acclaimed announcement has created an uproar amongst the growing SME populace, setting up pace for more opportunities, growth and business development in UAE in 2017. More Startups, Franchisee of Major Retailers, Offshore Companies of Multinationals and Corporates are expected to enter the UAE market in 2017.
Analyzing the various factors that have influenced the economic growth and development of UAE over the past years, Axiom Mark’s Business Consultants have outlined the significant factors that will outline the Scope of Business Opportunities in UAE in 2017. They are
1. Dubai Future Accelerators Initiative: A brilliant initiative aimed at creating Dubai as an Innovation hub is the Dubai Future Accelerators Initiative. With an investment of Dh1bn, this scheme pairs Government Departments with innovative companies to find solutions to the various challenges faced in this century. Headquartered in a 22,000 square foot building, 8 accelerators work in collaboration with the Government departments focusing on education, health, Infrastructure, transportation, security, energy and finance sectors. Technology SMEs and Innovators can make use of this opportunity to showcase their skills on a global platform and make a niche for themselves.
2. Investors &Financial Support from Banks: SMEs have the advantage of receiving adequate financial support from Investors and banks of UAE. In fact, the UAE Central Bank has re-strategized to encourage SMEs through financial assistance and enable more business progress.
3. Economic Diversification Policy: The Economic Diversification Policy is aimed at creating revenue from non-oil resources to reduce the perceived dependency of Oil and Gas Sectors for economic growth of UAE. Axiom Mark’s subject matter experts cite that encouraging non oil sectors have worked miracles for UAE and has seen an increase in GDP of 3.6% in 2016.
4. Planned Economic Strategy: The Ministry of Economy’s strategy clearly outlines its focus in 2017 on science, technology and innovation, which is composed of over 100 initiatives worth more than Dh 300 billion paving more opportunities for SMEs.
Summarizing, the scope of business opportunities for SMEs in UAE 2017 is wide and promising. SMEs will do good by harnessing this kind of conducive environment to establish their business and achieve success.