A new report highlights the enduring appeal of the UAE to small and medium-sized enterprises (SMEs) and business startups.
The report by Diligencia, Gulf Capital and MEED reveals that the number of SMEs entering the UAE has grown by 30 percent over the past decade. It says that the rise in SMEs in the UAE is being driven by the introduction of new policies designed to boost private sector growth, such as allowing 100 percent foreign ownership of limited liability companies (LLCs) in certain sectors.
“New and innovative companies continue to use the UAE as a base for their regional operations. Despite the softening of the economic market in recent years, existing companies have shown resilience,” said Dr. Karim El-Solh, CEO of Gulf Capital.
The report says that SME growth is particularly strong in the technology, health care and education sectors.
The development of non-oil sectors is a key objective of the UAE’s strategic development vision to diversify the economy away from oil dependency,
According to the Ministry of Economy, SMEs account for about 94 percent of all companies operating in the UAE and they employ about 86 percent of the country’s private sector workforce.
The report by Diligencia, Gulf capital and MEED highlights the leading role played by Dubai in providing the required business environment and economic infrastructure to support new companies.
It says that an average of 1,000 new company licenses were registered every year in Dubai from 2015 to 2018.