The contribution of SMEs in the UAE GDP grows 100% in comparison to 2010
The contribution of small and medium enterprises (SMEs) to the UAE gross
domestic product (GDP) doubled at 60 per cent in 2011, according to the
Ministry of Economy.
A report developed by Gulf Capital showed that the figures represent 100 per
cent increase in comparison to 2010 result as SMEs have become a vital cog
to the growth of the UAE economy.
The Ministry of Foreign Trade economic bulletin reported that the SME sector
in the UAE contributed 30 per cent of the GDP.
Gulf Capital, one of the largest and most active alternative investment
firms in the Middle East, which recently launched a $300 million (Dh1.1
billion Credit and Mezzanine Fund to meet the financing needs of fast
growing companies in the Middle East and Turkey, signed up as headline
sponsor of SMEinfo Awards as part of its strategy to support top performing
SMEs.
Recognising the invaluable economic input of businesses in the SME sector,
the Gulf Capital SMEinfo Awards seek to honour the top performing SMEs whose
outstanding business performance and innovations have contributed to the
growth and robustness of the UAE economy.
Mohammad Saleh Shelwah, Assistant Undersecretary for Economic Policy
Affairs, told Gulf News: “Since the SME sector’s contribution to the UAE’s
GDP is very high, the new forthcoming SMEs law has been developed to boost
economic output and to reduce the unemployment pressure in the private
sector as it creates a lot of job opportunities.”
The SME sector is the biggest employer in the country.
“SMEs are the backbone of economic development and growth, and we should
have proper legislation,” he added.
The Ministry of Economy announced earlier that the UAE is drawing a new SMEs
law, to be issued by the end of this year, which will strengthen
competitiveness of the economy and attract greater investment.
The new law will be issued this year as part of ongoing economic reforms.
This is aimed at attracting investment and ensuring sustainable growth by
strengthening the non-oil sector and reduce the country’s dependence on
volatile oil prices, Shelwah said.
He said that the law will strengthen competitiveness of the national economy
and boost the SME sector.
Abdul Baset Al Janahi, Chief Executive Officer of Dubai SME, highlighted
Dubai’s participation in developing the SME law which is in its final stage.
He said: “The UAE is already locked in a drive to diversify its economy by
attracting investment and encouraging industrial projects, and SMEs are seen
as a key factor in diversification given the country’s limited resources.”
