DUBAI 10 July 2018: SME [small and medium enterprises] contribution to Dubai’s economy rose from 40 per cent in 2009 to 47 per cent in 2016 while their contribution to job creation rose from 42 per cent to 52.4 per cent during the same period in spite of the slow global economic growth, according to a study.
Dubai SME, the agency of Department of Economic Development in Dubai, in conjunction with Dubai Statistics Centre, released the study on the local SME sector as part of Dubai SME Development Plan, which is part of the Dubai Plan 2021.
Younger start-ups make up nearly 50 per cent of the companies registered in Dubai and it validates the emirate’s appeal as a global centre for entrepreneurship, knowledge transfer and innovation, which also boasts of a state-of-the-art infrastructure and flexible legislative framework conducive to investment.
Commenting on the study, Sami Al Qamzi, Director-General of the DED, said that the SMEs in Dubai have demonstrated their ability to withstand regional as well as global instabilities and continue to march with confidence. He reiterated the DED’s commitment to enabling the local SMEs to adopt best international practices and strengthening their role in economic development in Dubai. Al Qamzi also stressed the need for clear policies that enable the SMEs to absorb rapid changes and grow sustainably thus reinforcing the emirate’s competitiveness.
According to the UAE Ministry of Economy, SMEs are the key engines of the national economy and are identified as one of the most important strategic drivers to support productive sectors. More than 94 percent of the companies operating in the UAE are SMEs and together, they account for more than 86 percent of the total private sector workforce as well as more than 60 per cent of the country’s current GDP, which is estimated to go up to 70 per cent by 2021.
Underlining the role and importance of the SME sector in the overall economy in Dubai, the study, which was initiated during the first quarter of 2018, showed that SMEs continue to create a significant number of job opportunities and add substantial value to the emirate’s economy.