What should businesses look forward to in 2017?

dubai - The challenge in 2017 would be to surpass the competitive industry

While we know that the world's largest Ferris wheel, nestled in Dubai, is going to be the ultimate eye for the city, we are wondering what's going to be the eye for Dubai when it comes to the business arena in 2017? With the New Year ringing in, every business is gearing up for new opportunities and explore avenues of growth by outlining their agenda for the year.

The year 2016 has been a roller-coaster for many businesses and despite the emerging economic headwinds, Dubai has seen a great increase in establishments of small and medium enterprises in the year bygone. Every business has to face challenges, but one can only reap benefits provided one sows the seed of hard work fuelled by passion. The land that we live in has an eco-system that allows SMEs to thrive, especially with its booming infrastructure industry.

We should not forget that large corporates of today were the SMEs of yesterday. With the advancement in technology, more and more new start-ups are tapping the opportunity and offering unique products.

The recent memorandum of understanding between the Sharjah Investment and Development Authority (Shurooq) and Dubai SME aims to boost the entrepreneurial spirit in Dubai and Sharjah, ultimately contributing towards enabling SMEs to be major drivers of economic, social and cultural development. This extended support by the government would open doors to opportunities manifold.

There are many dots to connect for an efficient business model that shows results on the growth curve. Here's what I had in mind:

The focal point for businesses
Businesses should not only be prepared against policy changes, financial market volatility and ever-changing technology, but should also focus on leveraging the present resources of growth by investing in advanced technology and enhancing productivity even during stagnation. This will be a threshold for many to rise above uncertainties.

Joining hands to foster growth
Joint ventures with different industries or international collaborations are imperative for a business to be successful beyond borders. Coming together of two companies not only pulls their strengths together but also aligns their forces to firmly march ahead. So SMEs, joint ventures and collaboration is the key factor.

Impact of bilateral trade
Trade relationships between two countries play a vital role in the growth dynamics of a region. The trade relationship between India and the UAE is quite strong as India ranks third among countries that export to the UAE, accounting for 9.2 per cent of the UAE's total imports. Economic sources expect the value of trade exchanges between the UAE and India to hit $100 billion in 2020. The UAE has become South Africa's biggest export partner in the Middle East. There's a strong trade and investment relationship between the US and the UAE which keeps growing with each passing year. Here we see, how important it is to expand one's presence for a company's growth and betterment.
 
Currents from currencies
Currency alone has the power to build or break down a market at any given point in time. While it plays a pivotal role in business, it is very important to comprehend its nature and channelise it in the right manner in one's business. Currency swaps boost bilateral economic and trade ties as well as help to limit exposure to fluctuations in the interest rate and reduce market risk in the foreign exchange market. Enterprises can benefit from currency and interest rate swaps as it allows them to take benefit of global markets by pulling together two companies that have an edge in different markets.

Edge of investments
For investors, 2017 would be a year to expand their reach to new segments, especially when Dubai is eyeing to raise the bar with its infrastructural developments in the next three years.
Majority of the free zones the UAE owns are in Dubai. This provides small and medium enterprises a strong platform to start their business. This is the reason why the SME sector is a vital contributor to the UAE's GDP. With the upcoming Expo 2020, SMEs can eye multiple avenues of growth from the beginning of 2017.

Surpassing competition
With every passing year, there's increased competition in the market. The challenge in 2017 would be to surpass the competitive industry. Value addition to your services would be the key factor while diversification of your portfolio would be another edge to break through the clutter.

As per Middle East Business Intelligence Service MEED, Dubai's preparations for Expo 2020 will see GDP growth rise to between four to five per cent a year from 2017 to 2020, as compared to 3.1 per cent in 2016. This is a good sign for the business sector.

Dubai is a land of opportunities. You just need to believe in yourself and move forward. With Expo 2020, the emirate will unfold many more pathways of growth for all of us. I would like to quote the popular saying: Tough times don't last but tough people do. The crucial key to sustain your abilities is your state of mind; because when the mind works, everything else gradually falls in place.

The writer is the regional director - Mena for the SME Chamber of India and IITC India and the president of Diplomats Summit, UK. Views expressed are his own and do not reflect the newspaper's policy.