Revealed: the importance of SMEs to Dubai's economy

MAGNiTT News 2 years ago - Thu, Nov 8, 2018, 6:12 AM

Revealed: the importance of SMEs to Dubai's economy
Author: MAGNiTT

By Sam Bridge / Arabian Business

 

SOURCE: Arabian Business - Revealed: the importance of SMEs to Dubai's economy


New study says SMEs contribute 47% of the emirate's GDP and 52% of its workforce

Dubai SME, the agency of the Department of Economic Development (DED) in Dubai, has revealed that small and medium-sized businesses make up 47 percent of the emirate's GDP and more than half of its workforce.

The agency mandated to develop the SME sector, in conjunction with the Dubai Statistics Centre, released a new study as part of Dubai SME Development Plan, which is part of the Dubai Plan 2021.

The study, which was initiated during the first quarter of 2018, showed that SMEs continue to create a significant number of job opportunities and add substantial value to the emirate’s economy, state news agency WAM reported on Monday.

The SME contribution to Dubai’s economy rose from 40 percent in 2009 to 47 percent in 2016 while their contribution to job creation rose from 42 percent to 52.4 percent during the same period in spite of the slow global economic growth.

It said younger start-ups make up nearly 50 percent of the companies registered in Dubai, validating the emirate’s appeal as a global centre for entrepreneurship, knowledge transfer and innovation.

Sami Al Qamzi, director-general of the DED, said that the SMEs in Dubai have demonstrated their ability to withstand regional as well as global instabilities and continue to march with confidence.

He reiterated the DED’s commitment to enabling the local SMEs to adopt best international practices and strengthening their role in economic development in Dubai.

Al Qamzi also stressed the need for clear policies that enable the SMEs to absorb rapid changes and grow sustainably thus reinforcing the emirate’s competitiveness.

Abdul Baset Al Janahi, CEO of Dubai SME, added: "The study confirms that our efforts over the past years have been fruitful and that the range of initiatives and policies Dubai SME has adopted are today being considered as global best practices by international organisations and institutions including the World Bank, United Nations, and the Organisation for Economic Co-operation and Development."

Al Janahi said Dubai SME will continue to launch innovative initiatives to accelerate enterprise growth and provide practical solutions to the challenges facing the SMEs, particularly innovative financing mechanisms.


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