UAE boosting financial inclusion for SMEs

UAE boosting financial inclusion for SMEs

Small and medium sized enterprises, SME, are defined as enterprises that are made up of under 250 employees. These small and medium sized enterprises are said to make up 47% of the economy of UAE. More than half of the workforce in UAE works for SME.As Dubai is known as the most active business hub around the world where finance for new businesses in UAE is always available, it appeals more to foreign investors. With an increase in finance for new businesses in UAE, there is increase in workplaces, and an increase is seen in the job opportunities.However, if the business owners end up facing financial problems, without proper aid, the business ends up shutting down. This causes many people to lose their jobs. Increase in the labour turnover rate will affect the economic rate of UAE.

Business Setup Dubai helps you setup an SME in Dubai. The whole process is made easy for with the experience of the experts at the firm.

Financial Inclusion for SMEs in UAE

According to the managing director of the International Monetary Fund (IMF), Christine Lagarde, almost 96% of the registered firms of UAE are small and medium sized enterprises. Therefore, SMEs are the seen as the biggest contributors to the GDP of UAE. However, SMEs are also the organizations that suffer the most in terms of finances.

Therefore, Lagarde disclosed that closing the financial gap will provide various economic benefits. One of the greatest benefits expected from this decision is an increase of 1% in annual economic growth of UAE which will lead to business opportunities in UAE. This will further lead to creating almost 15 million new jobs, by the year 2025.

So, it has been decided to extend credit provided by the banks for small and medium sized enterprises. An increase was seen in the workforce rate as jobs were created as a result of new SMEs.

Almost 50% of the companies registered in Dubai are SMEs. This is one of the reasons Dubai appeals as the hub for business opportunities in UAE. There are many investment opportunities for new business set ups which in turn leads to increase in job opportunities.

Furthermore, Lagarde also commented on a number of factors related to the economy and the institutions that are being considered. These factors include updating the legal framework and data processing which will reduce the risk of lending to SMEs. The government of UAE is also working on providing better market conditions that will allow the SMEs to operate successfully.

Services we offer

UAE has been working on updating the regulations in regards to business operations. The new regulations can be difficult to work with, especially for business owners that have no previous experience of operating a business. This is where professional business consultancies come in to play.

Business Setup Dubai is a consultancy that provides assistance to business owners in Dubai. They provide help for mainland company formation, free zone company formation and offshore company formation.

The process through which Business Setup Dubai walk their clients ensures that all kinds of registrations and permissions for operating the business are granted. This is so the business owners are able to successfully run their business.

This process includes giving detailed consultation sessions that allow the consultancy to figure out the best method of setup for the business. After which the consultancy provides step by step guidance for visa stamping and processing, registration and verification of the business etc.

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