Abdullah Al Darmaki, the chief executive of Khalifa Fund for Enterprise Development, left, says SME loans will play a huge part in the returns of the UAE finance industry. Sammy Dallal / The National
Abdullah Al Darmaki, the chief executive of Khalifa Fund for Enterprise Development, left, says SME loans will play a huge part in the returns of the UAE finance industry. Sammy Dallal / The National

Khalifa Fund chief urges UAE banks to do more to help small businesses



The financial community was urged to do more to help small businesses at the Abu Dhabi Entrepreneurship Forum yesterday.

A new small and medium enterprises (SME) draft law approved in June is set to be passed to promote the sector, but it would do little without further support, said Abdullah Al Darmaki, the chief executive of Khalifa Fund for Enterprise Development.

“There has been talk of an SME law that will empower our smaller companies, but one law is not going to create a vibrant SME landscape, especially when it is not in conjunction with a bankruptcy law,” said Mr Al Darmaki.

“I am not looking to copy-and-paste a law from the US or the UK. Our finance industry knows what to do, but there is nothing encouraging them to do it. Why are our banks posting record profits and the SME sector [is] not being part of the conversation?”

Understanding and reducing small business failure was high on the agenda at the forum yesterday.

The benefits of a healthy SME ecosystem were also discussed, with questions on how to create a healthier environment for companies. “The finance sector is missing out; banks should not only be about giving loans, but making an investment in small and medium-sized businesses and seeing what the returns are,” said Mr Al Darmaki.

“I guarantee that five years or more down the road, SME loans will play a huge part in the returns [for] our finance industry.”

at the forum also voiced their concerns about topics such as licensing and permits.

Ahmed Hassan Al Mansoori, the chief executive of Al Mansouri Health Products, spoke of the difficulty in getting permission for a health supplement that helps in controlling diabetes.

“It is not easy to register this product here in the UAE. The Ministry of Health took one year … the other [government agencies] took between three and six months,” Mr Al Mansoori said.

“When we started we needed [a lot of] support and the Khalifa Fund financed us for the project. We hope we get some good support from the Government, especially the government hospitals and that will give us a good push.”

Businesspeople at the forum also spoke of licensing issues, particularly for products and services that do not fit conventional businesses.

Alicia Al Mutawa, the general manager of Alessia Couture, has difficulty in explaining the idea of couture cleaning.

“It’s not easy but you cannot give up. When it comes to the permits it tends to be hard, especially when it is an innovative product,” said Ms Mutawa. “I had to say it is not a laundry, it is not dry cleaning, it is couture cleaning at the very high end. So the licence was supposed to say ‘Couture Cleaning’, but it ended up as ‘Couture’.”

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COMPANY PROFILE

Name: Qyubic
Started: October 2023
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5 of the most-popular Airbnb locations in Dubai

Bobby Grudziecki, chief operating officer of Frank Porter, identifies the five most popular areas in Dubai for those looking to make the most out of their properties and the rates owners can secure:

• Dubai Marina

The Marina and Jumeirah Beach Residence are popular locations, says Mr Grudziecki, due to their closeness to the beach, restaurants and hotels.

Frank Porter’s average Airbnb rent:
One bedroom: Dh482 to Dh739 
Two bedroom: Dh627 to Dh960 
Three bedroom: Dh721 to Dh1,104

• Downtown

Within walking distance of the Dubai Mall, Burj Khalifa and the famous fountains, this location combines business and leisure.  “Sure it’s for tourists,” says Mr Grudziecki. “Though Downtown [still caters to business people] because it’s close to Dubai International Financial Centre."

Frank Porter’s average Airbnb rent:
One bedroom: Dh497 to Dh772
Two bedroom: Dh646 to Dh1,003
Three bedroom: Dh743 to Dh1,154

• City Walk

The rising star of the Dubai property market, this area is lined with pristine sidewalks, boutiques and cafes and close to the new entertainment venue Coca Cola Arena.  “Downtown and Marina are pretty much the same prices,” Mr Grudziecki says, “but City Walk is higher.”

Frank Porter’s average Airbnb rent:
One bedroom: Dh524 to Dh809 
Two bedroom: Dh682 to Dh1,052 
Three bedroom: Dh784 to Dh1,210 

• Jumeirah Lake Towers

Dubai Marina’s little brother JLT resides on the other side of Sheikh Zayed road but is still close enough to beachside outlets and attractions. The big selling point for Airbnb renters, however, is that “it’s cheaper than Dubai Marina”, Mr Grudziecki says.

Frank Porter’s average Airbnb rent:
One bedroom: Dh422 to Dh629 
Two bedroom: Dh549 to Dh818 
Three bedroom: Dh631 to Dh941

• Palm Jumeirah

Palm Jumeirah's proximity to luxury resorts is attractive, especially for big families, says Mr Grudziecki, as Airbnb renters can secure competitive rates on one of the world’s most famous tourist destinations.

Frank Porter’s average Airbnb rent:
One bedroom: Dh503 to Dh770 
Two bedroom: Dh654 to Dh1,002 
Three bedroom: Dh752 to Dh1,152