The inaugural SME Confidence Index report from UAE’s RAKBANK unveils a thriving post-Covid-19 panorama, with SMEs showcasing sturdy progress and optimism.

The index provides an in depth evaluation throughout key industries, together with development and manufacturing, transport, buying and selling, public providers, skilled providers, and client and retail providers.

Two in three SMEs expressed a constructive view of the long run enterprise surroundings within the nation, based on the report by RAKBANK in collaboration with impartial analysis firm RFI World.

The report’s general confidence index for UAE SMEs stands at 61, based mostly on RFI World‘s evaluation of UAE macroeconomic indicators and a survey of over 1,000 SMEs performed between November and December 2023.

It additionally reveals SMEs’ progress is propelled by notable will increase in income over the previous two years, particularly inside key sectors resembling development and manufacturing, and public providers.

“Small and medium enterprises are the spine of each wholesome economic system, and that is very true within the UAE, the place SMEs make up 94 per cent of corporations and contribute over 50 per cent to the nation’s GDP,” says Raheel Ahmed, CEO at RAKBANK.

“That’s the reason we centred this inaugural report across the SME sector, in step with our precedence of supporting this flourishing section by way of actionable insights to help of their decision-making, in direction of higher enterprise progress and success.”

Contained in the report

The report paints a constructive financial outlook for the UAE, forecasting non-oil GDP progress of over 4 per cent in 2024 and an general GDP improve of 5.70 per cent this yr. Notably, the RAKBANK SME Confidence Index highlights indicators of restoration, together with resort occupancy charges approaching pre-pandemic ranges, signaling a revival within the tourism sector.

Nonetheless, it additionally acknowledges challenges dealing with SMEs, resembling rising labour and operational prices, the upcoming introduction of company tax, and monetary constraints. Overcoming these obstacles requires continued help from monetary establishments, complementing authorities initiatives.

Leveraging sturdy macroeconomic information and enterprise sentiment evaluation, the report highlights a buoyant enterprise surroundings, significantly evidenced by the issuance of latest enterprise licences in Dubai. Regardless of challenges like oil value fluctuations, macroeconomic indicators point out beneficial circumstances for SME progress.

SMEs are actively pursuing innovation and enlargement, with a eager concentrate on launching new merchandise/providers and responding to buyer demand. Banking help emerges as essential, with excessive satisfaction ranges amongst SMEs for tailor-made monetary options.

Dhiraj Kunwar, MD enterprise banking at RAKBANK, additionally added: “RAKBANK has a wealthy legacy of supporting SMEs, and the launch of our Index in partnership with RFI World builds upon this legacy, because the UAE’s first SME-specific confidence survey. We belief that this report will convey real worth to small and medium enterprises who’re in search of out credible content material and information factors to align their enterprise technique.”