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How an AI-Led fintech is empowering UAE SMEs with financial clarity
Finanshels.com aims to address gap by targeting one of the root causes: poor financial visibility
- PUBLISHED: Thu 17 Jul 2025, 3:22 PM
Despite SMEs forming the backbone of the UAE economy, contributing over 50% to the country’s GDP and employing a substantial portion of the workforce, access to finance remains a major bottleneck. According to Kearney, the SME financing gap in the GCC is around $250 billion, and the UAE is no exception – this is a bottleneck for regional economic diversification.
“Traditional banks tend to be risk-averse, often rejecting up to 70% of SME loan applications due to limited credit history, poor financial documentation, or perceived higher risk. Compounding this are issues like inadequate financial infrastructure, lack of tailored lending products, and a maturity mismatch in financing structures,” said Muhammed Shafeekh, founder of Finanshels.com, a tech-enabled finance platform.
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Finanshels.com, aims to address this gap by targeting one of the root causes: poor financial visibility. “We provide automated, affordable accounting, bookkeeping, and tax compliance services specifically designed for SMEs across industries like startups, service-based firms, e-commerce, F&B and more. By helping businesses maintain robust financial records and stay compliant with UAE tax laws, we empower them to become loan-ready — improving both their financial health and credibility with lenders. We also launched an AI-powered WhatsApp tool for fast, low-cost corporate tax registration, making financial compliance more accessible than ever. Ultimately, by equipping SMEs with reliable financial insights, we reduce the information asymmetry that holds back funding decisions — making them bankable and investment-ready,” Shafeekh said.
Fintech holds transformative potential for SME growth in the UAE — especially in a landscape where traditional financial systems often fall short. From simplifying operations to unlocking new sources of financing, fintech can dramatically level the playing field for smaller businesses.
“At Finanshels.com, we’re leveraging technology to streamline key financial operations that are often overlooked or unaffordable for SMEs. Our automated bookkeeping, VAT and corporate tax compliance, and AI-driven tools eliminate the need for expensive legacy systems or full-time finance teams,” Shafeekh said.
But it’s more than just automation. Fintech platforms serve as an enabler of trust in the ecosystem. “When SMEs can produce accurate financial statements, stay tax compliant, and monitor their cash flows in real time, they not only improve their internal operations — they also build confidence with investors, banks, and even regulators,” Shafeekh said.
The outlook for the SME fintech sector in the UAE is strong, with the potential to reshape how small businesses access and manage their finances. As compliance requirements around VAT, corporate tax, and AML become more complex, SMEs will increasingly rely on fintech platforms that simplify these burdens.
Shafeekh believes the next phase of growth will be driven by the following factors:
Sector-vertical Specialization: Moving away from one-size-fits-all solutions, we focus on tailoring financial services to niche sectors like startups, service-based firms, e-commerce, F&B, etc—each of which has unique cash flow patterns and compliance needs.
Embedded Finance: Integrating essential financial tools like payments, lending, and compliance within the day-to-day platforms SMEs already use—making finance a seamless part of their operations.
Data-Driven Credit Assessment: By leveraging real-time bookkeeping and tax data, we can help financial institutions assess SME creditworthiness more accurately—potentially reducing loan rejection rates and increasing trust in SME lending.
Public-Private Collaboration: We see enormous potential in fintechs like us working hand-in-hand with banks and government bodies to democratize access to funding, streamline compliance, and build a more inclusive financial ecosystem.
“The sector is not just evolving—it’s maturing. And as that happens, fintechs that deeply understand SME pain points and deliver relevant, tech-enabled solutions will be at the forefront of this transformation,” Shafeekh said.
Somshankar Bandyopadhyay is a News Editor with more than three decades of experience. Currently, he manages the news production of the business section, ensuring that the top economic and business news of the day reaches its readers.
