SME Sector in Dubai
SME Sector in Dubai
What is SME?
You must be thinking what SME actually is. It is the abbreviation of Small and Medium Enterprises. You can get the idea of in this way, that, these are the businesses on the small and medium level. Not everybody is able to establish a multinational business agency or firm. Also, not everybody has that much of an investment to start.
Starting with a business is a bit risky, whether it will work or not. People try to play safe and start with investing a small amount of money. It makes these organizations a part of SME.
Every country has an SME sector. Either large or small. Most developing countries have a rather large SME sector. The growing economies encourage these SMEs and let them build and flourish.
Benefits of SME
SME sector has a big share in the economy of the country. Imagine shutting down these small and medium enterprises, the country will surely collapse. This ensures that SMEs share a major chunk in the economy. All the countries who work strategically, plan to enhance and encourage SMEs.
What do you think it will help in? these flourishing SMEs will help the government earn more revenue and therefore, help the country’s economy get better and stronger. And establishing country you see, there is a great part of SMEs in their success.
The countries build their revenue and treat these SMEs as an asset. A multinational company in a country do benefit the economy but not as much as these SMEs.
You can figure a great difference between a country has lower SMEs stat to that of having a higher SMEs statistic.
SMEs in Dubai is a flourishing country. It has come a long way in the past few years and has been getting better ever since. The government of Dubai is continuously taking measure to make its economy better and stronger.
You will see a big part of SMEs in the establishment and stabilizing of the Dubai economy. It is not only about the economy but for facilitating the people there and the visitors even more. You can see the standard of living in Dubai. It is a lot higher than in most countries.
It is because of these small and medium enterprise sectors which are helping people more and more and helping to regulate and make the economy better. Dubai has always been an attraction for people in any country. For this, the government is putting efforts to make it a favourite country.
There are also business opportunities in Dubai. These are mainly for those who are interested in the SME sector of Dubai. The laws are made much easier for the people investing in the SME sector. The government has also started a free zone to encourage small business and let them earn a profit without any taxes.
According to the statistics, this SME sector in Dubai regulates the GDP by 47%. It is undoubtedly a big chunk of any GDP.
SMEs and Their Turnovers in Dubai
If we talk about the trading sector, there are different types of SMEs
A firm with less than equal to 9 employees is a micro SME. It can have a turnover of about AED 9 million.
A firm which has about 35 employees. It can be less or equal to 35. It can have a turnover of AED 50 million.
A firm having about 75 employees. Lesser or equal. It can earn a turnover of about 250 million.
Then comes in the manufacturing sector.
The Micro SME
It is a manufacturing firm, having almost 20 employees and workers. It can have a revenue of about AED 10 million
It is a manufacturing firm which has about 100 employees. It can earn a turnover of AED 100 million.
A manufacturing firm having almost 250 employees. This firm can earn a turnover of AED 250 million.
Services firms have different statistics.
A micro SME has around 20 employees and it can have a turnover of 3 million AED.
A firm having almost 100 employees can have a turnover of 25 million AED.
A service firm in Dubai having 250 employees can have a turnover of 150 million AED.
You can have quite a bit of an idea about SME and how much is their turnover. Firms in different sectors earn differently. The manufacturing sector SMEs earn the most.
The Economy of Dubai
The economy of Dubai is mainly based on the industries. The trade, service and the manufacturing companies are bone of Dubai. These firms are holding the economy of Dubai well.
One more thing that helps in the GDP growth is foreign trade. Dubai is a travel hub and visitors’ hub. It is a country which connects to most other countries.
One thing you know for sure, the SMEs are extremely export-oriented. The people in the SME sector are more inclined towards exports. According to stats, 51% of the SME sector is more towards exports.
We can see the trading sector is more inclined to towards the exporting than the manufacturing sectors. The manufacturing sector is also the most earning SME sector in Dubai. Asia and Africa are the main exporters.
Dubai is focusing more on the SMEs to strengthen the economy. You can get your business started with an innovative idea. If your idea is an innovative idea your business is more likely to reach a higher level and get to the international level.
SMEs is likely to earn more if you are working hard and have your employees properly working, the firm can have a great turnover. While in SME you should also look forward to planning a training session for your employees. This will surely increase productivity and will let your firm earn more and more. SMEs are more about the basic grass, root level employees and functioning. Even with this small firm, you can load of profit.
The IBN SME Sector is a stage made for Company proprietors and Senior Executives to share their insight and gain from one another. Individuals are welcomed on a month to month/every other month premise to offer by means of an introduction or instructional course, their particular information of a subject appropriate to their business area so every part going to the occasion leaves the stay with learning they can use the next day in their organization or occupation.
The SME bunch has additionally turned into an exceptionally effective systems administration gathering and we effectively urge individuals to allude business chances to our kindred individuals.
Enhancing SME Finance
As a feature of endeavours to help SME development in the nation and decrease the hole among the free market activity of SME fund, the Dubai Chamber of Commerce and Industry (Dubai Chamber) issued new rules for upgrading SME account in November.
Its Chairman, Abdul Rahman Saif Al Ghurair, said at the occasion that improving SME access to the fund would viably guarantee Dubai’s proceeded with advancement as a universal exchanging centre point.
“SMEs speak to more than 90 percent of Dubai organizations and they assume a fundamental job in structure an aggressive private part, and contribute altogether to business and monetary movement in Dubai and the UAE”.
Al Ghurair said:
“In spite of their indispensable job in Dubai’s economy, a considerable lot of our SME individuals keep on confronting challenges verifying financing at reasonable rates. Truth be told, the UAE’s all out bank loaning to SMEs is around 3.85 percent when its objective is 24.3 percent. Along these lines, tending to this issue has been an essential undertaking for the Dubai Chamber,”
Dubai SME, the organization of the Department of Economic Development (DED) in Dubai, has uncovered that little and medium-surveyed organizations make 47 percent of the emirate’s GDP and the greater part of its workforce.
The organization commanded to build up the SME segment, related to the Dubai Statistics Centre, discharged another investigation as a major aspect of Dubai SME Development Plan, which is a piece of the Dubai Plan 2021.
The investigation, which was started amid the primary quarter of 2018, demonstrated that SMEs keep on making countless chances and increase the value of the emirate’s economy, state news organization WAM provided details regarding Monday.
The SME commitment to Dubai’s economy ascended from 40 percent in 2009 to 47 percent in 2016 while their commitment to work creation ascended from 42 percent to 52.4 percent amid a similar period regardless of the moderate worldwide financial development.
It said more youthful new businesses make up almost 50 percent of the organizations enlisted in Dubai, approving the emirate’s intrigue as a worldwide place for enterprise, learning exchange and development.
Sami Al Qamzi, executive general of the DED, said that the SMEs in Dubai have exhibited their capacity to withstand provincial just as worldwide dangers and keep on walking with certainty.
Al Janahi said Dubai SME will keep on propelling imaginative activities to quicken venture development and give pragmatic answers for the difficulties confronting the SMEs, especially creative financing instruments.