Scope of SME business in UAE
Dubai has always been a very attractive destination for company formation, business setup and investments. UAE has over 10 million foreign visitors annually while the geographical proximity to the southern region has historically stimulated trade and exchange relationships leading to business formation in UAE. But now, the SMEs (Small and Medium Enterprise) in UAE is the biggest contribution towards the growth of UAE.
In today’s time, SMEs represent 95% of all firms, account for 42% of the workforce and contribute around 40% to the GDP generated in Dubai’s economy, this number is growing gradually almost every day. Also, the policy makers have made it easy for the SMEs to establish their business in UAE.
SMEs form the foundation of any modern economy. It not only boosts investments and employment but also sustains economic growth. Recently, UAE’s Finance Ministry unveiled a new law to support the growth of SMEs, thus boosting entrepreneurship in the country. The new law will require federal government entities to allocate at least 10% of their purchasing, servicing and consulting budgets to SMEs. Start-up and running costs for SMEs will also be reduced, and the firms will have increased access to finance from the Emirates Development Bank.
Given that SMEs account for 95% of all businesses in Dubai, a steady increase in the number of business licenses is a clear indication of growing interest among businesses to establish operations in UAE. Dubai SMEs are highly export-oriented with 51% of the SMEs demonstrating that a significant part of their revenues is generated outside UAE.
Moreover, with professional business setup companies, providing various services including operational and other accounting services, one can easily establish and grow their business in UAE whether it is an SME or a full-fledged business.
With FlyingColour, one can establish their company – mainland, offshore or free zone in UAE without any hustle. The company has 10+ year of experience and 10,000+ satisfied global clients. They also provide accounting services, PRO services and business centres in UAE as well that too at the highly affordable prices.
Thus, with friendly policies and support of government SMEs in UAE have immense scope and growth opportunities.
