After facing unprecedented changes in the wake of the COVID-19 pandemic, SME confidence in the UAE is on the rise, according to the latest research by Mastercard and the inaugural Mastercard MEA SME Confidence Index found that 88% of SMEs in the UAE are optimistic about the next 12 months. In fact, two-thirds (66%) are projecting revenues that will either grow or hold steady.
As many regional economies gradually enter the normalization and growth phase, and social restrictions continue to ease, small and medium sized businesses in the UAE have identified easier access to funding (40%), acceptance of digital payments (34%) and training and upskilling staff (34%) as the top three drivers for growth. This highlights the opportunities for small businesses that arise from both internal transformation as well as industry regulations and trends.
Making sure that SMEs have all the support they need to go digital and grow digital, is a key focus for Mastercard. The company works closely with the government, financial organizations and the wider business community to create opportunities for the over 400,000 SMEs that operate within the UAE and provide employment for over 86% of the UAE workforce.
Mastercard has pledged $250 million and committed to connect 50 million micro, small and medium size businesses globally to the digital economy by 2025 using its technology, network, expertise and resources in support of the company’s goal of building a more sustainable and inclusive digital economy. As part of these efforts, Mastercard is focused on connecting 25 million women entrepreneurs. For many small businesses, reducing their dependence on cash through digital payments acceptance, has played a major factor in being able to get paid and maintain revenues.
“Starting a business is one of the most ambitious and rewarding things one can do, and it’s great to see that confidence is returning to the UAE’s SME sector after a challenging period. The study highlights the potential of several key drivers of growth that small and medium businesses in the UAE rely on as they look towards an optimistic future. At Mastercard, we connect SMEs to the technologies, the network and the expertise they need to sustainably grow their businesses, collaborating to build prosperous and more inclusive economies,” said Girish Nanda, Country Manager, UAE and Pakistan, Mastercard.
When asked about the main thing that keeps them up at night, 60% of SMEs in the UAE mentioned the challenge to maintain and grow their business was their top issue. Looking at concerns over the next 12 months, 61% identified the rising cost of doing business, while 38% cited the need for easier access to capital and funding. Private sector partnerships (57%) and government-led initiatives (53%) were identified as having the biggest potential to positively impact SMEs and the wider UAE market.
