Dubai the ideal platform for growth of SMEs

Dubai the ideal platform for growth of SMEs

The Dubai SME100 initiative aims to celebrate Dubai’s top-performing SMEs to encourage continuous enterprise development, investment and best practices in the SME sector.



By Abdul Basit (chief Reporter)

Published: Sun 22 Feb 2015, 11:19 PM

Last updated: Thu 25 Jun 2015, 11:57 PM

Dubai — Dubai is an ideal platform to support small and medium enterprises, or SMEs, and enable businesses to gain access to global markets.

This was stated by Shaikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of the Dubai Executive Council at the launch of the third cycle of the Dubai SME100 rankings for 2015.Shaikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of the Dubai Executive Council

The Dubai SME100 initiative aims to celebrate Dubai’s top-performing SMEs to encourage continuous enterprise development, investment and best practices in the SME sector. Dubai SME is the agency of the Department of Economic Development mandated to develop the SME sector.

The ranking provides SMEs with a firm ground to market their capabilities to regional and global investors while also assisting them in sourcing growth capital. By providing a reliable index of SME performance, the ranking also serves as a base of investable SMEs for a potential secondary listing of SMEs capable of taking the initial public offering route.

The initiative not only embodies an innovative approach in developing SMEs but also signifies a turning point, which leads this vital sector towards enhanced business capital and a range of growth enablers. The ranking has also reinforced its relevance as a long-term plan to evolve into a local, regional and global role model in SME development.

“SMEs today represent 95 per cent of all firms registered in Dubai, 42 per cent of the labour force and 40 per cent of the emirate’s GDP. Therefore, this sector has a critical role in achieving and fostering overall development across diverse economic sectors. SMEs also provide the best opportunities for new business models, employment as well as innovation and when placed within a progressive development ecosystem they can fast evolve into global enterprises,” Shaikh Hamdan said.

Dubai has become the focus of attention of the business community, and has a global reputation in the field of entrepreneurship, he said, adding that Dubai is an ideal platform for SMEs in various vital sectors such as health, education, information technology, logistics, tourism, hospitality, etc, and the emirate has successfully enabled businesses to reach other markets in the region and around the world.

“The SME sector forms the central nerve of the economy of the emirate of Dubai due to its flexibility, diversity and sustainability. Hence, the Government of Dubai has launched various initiatives aimed at promoting entrepreneurship and SME development. This commitment to promote entrepreneurship and SMEs is supported and led by our socio-economic stability, openness and visionary leadership,” said Sami Al Qamzi, director-general of the DED.

Abdul Baset Al Janahi, chief executive officer of Dubai SME, said: “We are pleased to launch the third cycle of SME100. For the top 100 SMEs in 2013, the net combined turnover exceeds Dh4.5 billion, which is an increase of over 100 per cent from the 2011 ranking, and their profit exceeds Dh434 million, 98 per cent higher than in 2011. The top 100 also employ more than 7,000 among them and the productivity per worker exceeds Dh636,000, a 22 per cent increase over 2011.”

Al Janahi noted that in the 2013 ranking, SMEs that achieved double-digit revenue growth over the last three years are 81, a 53 per cent growth from the 53 such SMEs in the 2011 list. A 32 per cent increase (from 41 SMEs in 2011 to 54 in 2013) is also seen in terms of companies that achieved more than 20 per cent growth over the last three years. Presently, Dubai SME seeks to provide an appropriate environment and ideal opportunities for the SME100 companies to move to a more inclusive and expansion phase in the field of entrepreneurship.

Dubai-based SMEs meeting the official Dubai SME definition can apply for the SME100 ranking provided they have three years of audited financials. Unlike other rankings, which are based mainly or purely on financial dimensions, the Dubai SME100 ranking places a balanced emphasis on financial and non-financial dimensions that affect enterprise performance and development. The non-financial dimensions cover innovation, international orientation, human capital development and corporate governance.

— abdulbasit@khaleejtimes.com


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