More good news for the Dubai SME sector! Cheaper insurance costs and more convenient payment times are on the way
The Dubai government’s efforts to increase the contribution of Small and Medium-sized Enterprises in the country’s GDP is quite praiseworthy, and policies to boost the current growth would continue in the upcoming years as well.
Among all the companies in Dubai, 90% of them fit the criteria of SMEs. Due to emerging SMEs, the country’s unemployment rate has started to drop as well. Compared to 2009, employment opportunities in SMEs have raised to 11% more in 2019.
Aref Abdulrahman Ahli, the Executive Director of Budget and Planning at Dubai’s Department of Finance, said, “This proves the importance of SMEs and the big role they play in the economy of the Emirates.”
The UAE Ministry of Economy has acknowledged the contribution of the SMEs as one of the most important strategic drivers to cater productive sectors on the verge of the fourth industrial revolution.
To take the progress even further, the government has announced several measures to stimulate SMEs. The initiatives include paying them within 30 days instead of 90. On top of that, insurance costs are going to reduce, so that SMEs find it much easier to maintain their operations.
To encourage the startups, the Step Conference is arranged annually, which hosts prospective entrepreneurs, creative minds, digital enthusiasts and investors. Many industry experts have shared their thoughts while attending the event.
“Dubai thinks strategically,” said Fadi Ghandoor, the Chairman of the Wamda Group. “Other cities need to learn. It’s a decision-making process. There is vision and they basically promise something and deliver on it so people come here.”
Co-founder of NorthStart, a recruitment company that works to increase inclusion of people with learning disabilities in workforces, Ricky Mearns, said, “There are no other organizations in Dubai doing this. My background is in inclusion across the board and communities and education,” in an interview with Target Dubai. This proves how new innovative ideas are coming into Dubai as the entrepreneurs are not afraid of implementing their new ideas here.
If the government continues to support the SMEs with such helpful policies, more global startups will enter the country and take the economy forward.