A thriving small business sector has long been acknowledged as crucial to overall economic success and while that is as true for us as it is elsewhere, the reason is different here compared to many other countries. Usually the importance of small- and medium-sized enterprise (SME) sector is because it provides jobs, but here the positions created overwhelmingly go to expatriate workers, mostly from South and Southeast Asia.
Instead, the importance of a healthy SME sector is through supporting the major companies operating here, providing niche services that large corporations are ill-suited to provide but which otherwise would be done by foreign contractors. Equally important is the goal of diversifying the economy away from extractive industries, making it more multifaceted, and by establishing the UAE as an entrepreneurial hub, acting as a counterbalance to the large public sector.
At present, SMEs account for about 60 per cent of the UAE’s non-oil economy, including 90 per cent of businesses overall. The sector employs more than 42 per cent of workers, with the Ministry of Economy predicting that SMEs will account for 70 per cent of the country’s GDP by 2021.
However those running SMEs face a series of challenges, despite many factors in their favour. The benefits include the absence of tax and the fact that we rate 23rd – the highest of any Arab country – in the World Bank's 2014 survey on the ease of doing business. But as The National has reported, some SMEs find it difficult to access loans at reasonable rates – or often getting a loan at all. The bank rejection rate for loan applications made by SMEs varies between 50 and 70 per cent, while this month thousands of small businesses were advised by Standard Chartered bank that it would no longer offer them banking services.
What should be done to help this sector? Tax relief is a commonly used tool elsewhere but obviously does not apply here. The National recognised the importance of SMEs by launching a campaign yesterday to support them. Giving this sector easier access to credit, albeit with proper risk measures in place, will allow business owners to achieve their full potential. If SMEs thrive, the entire UAE economy will reap the rewards.
A State of Passion
Directors: Carol Mansour and Muna Khalidi
Stars: Dr Ghassan Abu-Sittah
Rating: 4/5
Living in...
This article is part of a guide on where to live in the UAE. Our reporters will profile some of the country’s most desirable districts, provide an estimate of rental prices and introduce you to some of the residents who call each area home.
MATCH INFO
Rugby World Cup (all times UAE)
Final: England v South Africa, Saturday, 1pm
The bio
Favourite vegetable: Broccoli
Favourite food: Seafood
Favourite thing to cook: Duck l'orange
Favourite book: Give and Take by Adam Grant, one of his professors at University of Pennsylvania
Favourite place to travel: Home in Kuwait.
Favourite place in the UAE: Al Qudra lakes
Brief scores:
Manchester City 2
Gundogan 27', De Bruyne 85'
Crystal Palace 3
Schlupp 33', Townsend 35', Milivojevic 51' (pen)
Man of the Match: Andros Townsend (Crystal Palace)
Scorecard:
England 458 & 119/1 (51.0 ov)
South Africa 361
England lead by 216 runs with 9 wickets remaining
Fanney Khan
Producer: T-Series, Anil Kapoor Productions, ROMP, Prerna Arora
Director: Atul Manjrekar
Cast: Anil Kapoor, Aishwarya Rai, Rajkummar Rao, Pihu Sand
Rating: 2/5
THE DETAILS
Deadpool 2
Dir: David Leitch
Starring: Ryan Reynolds, Josh Brolin, Justin Dennison, Zazie Beetz
Four stars
Draw:
Group A: Egypt, DR Congo, Uganda, Zimbabwe
Group B: Nigeria, Guinea, Madagascar, Burundi
Group C: Senegal, Algeria, Kenya, Tanzania
Group D: Morocco, Ivory Coast, South Africa, Namibia
Group E: Tunisia, Mali, Mauritania, Angola
Group F: Cameroon, Ghana, Benin, Guinea-Bissau
THE SPECS
Engine: 1.5-litre turbocharged four-cylinder
Transmission: Constant Variable (CVT)
Power: 141bhp
Torque: 250Nm
Price: Dh64,500
On sale: Now
Men from Barca's class of 99
Crystal Palace - Frank de Boer
Everton - Ronald Koeman
Manchester City - Pep Guardiola
Manchester United - Jose Mourinho
Southampton - Mauricio Pellegrino
COMPANY PROFILE
Name: Kumulus Water
Started: 2021
Founders: Iheb Triki and Mohamed Ali Abid
Based: Tunisia
Sector: Water technology
Number of staff: 22
Investment raised: $4 million
South Africa v India schedule
Tests: 1st Test Jan 5-9, Cape Town; 2nd Test Jan 13-17, Centurion; 3rd Test Jan 24-28, Johannesburg
ODIs: 1st ODI Feb 1, Durban; 2nd ODI Feb 4, Centurion; 3rd ODI Feb 7, Cape Town; 4th ODI Feb 10, Johannesburg; 5th ODI Feb 13, Port Elizabeth; 6th ODI Feb 16, Centurion
T20Is: 1st T20I Feb 18, Johannesburg; 2nd T20I Feb 21, Centurion; 3rd T20I Feb 24, Cape Town
Meydan racecard:
6.30pm: Al Maktoum Challenge Round 2 (PA) Group 1 | US$75,000 (Dirt) | 2,200 metres
7.05pm: UAE 1000 Guineas (TB) Listed | $250,000 (D) | 1,600m
7.40pm: Meydan Classic Trial (TB) Conditions | $100,000 (Turf) | 1,400m
8.15pm: Al Shindagha Sprint (TB) Group 3 | $200,000 (D) | 1,200m
8.50pm: Handicap (TB) | $175,000 (D) | 1,600m
9.25pm: Handicap (TB) | $175,000 (T) | 2,000m
10pm: Handicap (TB) | $135,000 (T) | 1,600m
COMPANY%20PROFILE
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