The UAE is seeking to boost the number of companies operating in the country by nearly 67 per cent to 2 million by 2031, with a focus on developing the small-and-medium enterprises critical to its economy.
The Arab world's second-largest economy is increasing its target from the current 1.2 million companies, up from 600,000 five years ago, Abdullah bin Touq, Minister of Economy and Tourism, said in a press conference in Abu Dhabi. Of these, SMEs comprise 94 per cent currently.
The UAE on Sunday launched a national campaign titled The Emirates: The Start-up Capital of the World aimed at attracting and training Emiratis to set up their own businesses in sectors of strategic importance to the economy.
“The campaign brings together more than 50 entities from both the public and private sectors, with the aim of training and nurturing 10,000 Emirati entrepreneurs, creating thousands of economic opportunities, and raising community awareness on the importance of leveraging the economic momentum the country is witnessing,” Sheikh Mohammed bin Rashid, UAE Vice President and Ruler of Dubai, said in a Media Office statement.
“A series of initiatives will be introduced, with a call for all institutions to actively participate in this campaign and support its objectives.”
SMEs form the backbone of the national economy, contributing more than 63 per cent of the non-oil gross domestic product. The importance of the sector is underpinned by the fact that the UAE is currently home to 50 business incubators spread across the country, Sheikh Mohammed said.
“The UAE also leads among 56 global economies in supporting SMEs and in providing the best possible environment for their growth and success,” he added.
The government is looking to attract Emirati SMEs to five main sectors including food and food processing to bolster its food security strategy, tourism and hospitality that comprise 13 per cent of its GDP, financial services with a focus on FinTech, the space economy and data analytics, the minister said.
The campaign aims to attract and train entrepreneurs, make the UAE an attractive destination for talent and SMEs and promote the success stories of Emiratis who have contributed to raising awareness about the importance of entrepreneurship.
“We believe that the future is forged by our young entrepreneurs, therefore we are seeking to empower nationals to create new economic opportunities and start their own businesses, instead of just searching for a job,” the minister said during the press conference.
SMEs are a key pillar for economic growth in the UAE, representing about 94 per cent of all businesses and employ about 86 per cent of the private sector workforce, according to the Khalifa Fund for Enterprise Development.
The SMEs sector contributes 63.5 per cent to the non-oil GDP of the UAE, making it a vital growth engine for the economy.
The UAE government has rolled out numerous initiatives to support the growth of SMEs. These include programmes to bridge gaps in access to finance, procurement and developing skills by connecting smaller enterprises with opportunities and resources, some of which are available through government platforms such as Tamm.
With the UAE signing comprehensive economic partnership agreement (Cepa) deals with key trading partners around the world, it is forging a pathway for SMEs to export their goods and services to markets beyond the country's borders.
“SMEs today are part of our delegations and international exhibitions. We're looking always to bring SME's as a part of that, we even cover sometimes part of their travel [expenses], we support them as well with exhibiting by taking a booth on the ministry level but also allowing them space to exhibit their services or products,” Mr Bin Touq said.
The UAE is rolling out several programmes to meet its SME sector goals including launching the StartupEmirates.ae Digital Platform in partnership with the New Economy Academy. It will provide free mentorship programmes and connecting youth with start-ups.
The platform aims to attract 10,000 entrepreneurs and create 30,000 new jobs by 2030, offering shared workspaces, business networking events, training programmes and cross-border partnerships to position the UAE as a gateway for global start-ups.
Other programmes includes an entrepreneurship programme, a specialised content creator programme in economics and entrepreneurship, project management experts programme, UAE tax agent programme. It will also hold young entrepreneurs and graduate business expo and will help lunch 250 Emirati real estate companies, according to the Media Office statement.
