Contribution of Small and Medium Size Businesses to Dubai’s Economy in 2021
Small and Medium-sized Businesses account for more than half the workforce in Dubai, contributing almost 52% to its Gross Domestic Product (GDP). The SMEs (Small and Medium Enterprises) in Dubai account for approximately 95% of the city’s enterprise population making them an integral part of Dubai’s economy. When the COVID 19 pandemic hit the Dubai economy like any other in the world, small and medium-sized companies of the mainland were affected the most, the lockdown protocols and trade restriction being a huge blow to these budding companies. A reflection of which could be seen in the economy almost until the end of 2020. However, the recent trends show a remarkable comeback of the Dubai economy and the contributions of small and medium-sized business enterprises to this ascend is inevitable.
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There are many reasons why SMEs are an integral part of Dubai’s economy. In addition to their numbers and service outputs, they are also the prototypes of future industries which can transform the economy of the mainland to newer levels. Now that the COVID-19 restrictions are easing, the SME sector is back to its full potential, with daily services like salons and hotels providing various services throughout the clock. Moreover, with EXPO 2020 and other innovative projects on the horizon, the demand for supplies and services is higher than ever before. The Dubai government, realizing their importance in the mainland has come up with novel strategies to boost the growth of small and medium enterprises in Dubai, including various incentives and entrepreneurial training programs under the leadership of Dubai Entrepreneurship Academy (DEA). All these incentives along with the digitalization of delivery and payment methods have helped SMEs survive and stay strong despite the crucial trouble the COVID-19 situation has put them through.
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As SMEs are restarting their business all over the city abiding by new protocols, the economy is seeing a remarkable boost with the GDP contribution of SMEs expected to rise to 60% by the end of 2021. Entrepreneurs from various fields are confident and optimistic about the future especially with the investor-friendly attitude the Dubai government is undertaking. These, along with the mainland’s business-friendly environment, the SMEs are getting back to their feet, contributing a fair share to the pulsating economy of Dubai.
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