The United Kingdom has dominated the headlines over the last week thanks to the Scotland referendum.
So the arrival of 11 small and medium British businesses to the UAE last week was a much quieter affair in comparison. Working in sectors as diverse as fashion and fertilizer, the SMEs were all here to tap into what they consider one of the most dynamic markets globally.
The trip was organised as part of Santander bank’s Breakthough programme, which helps fast-growth SMEs expand their businesses into new markets. The companies included in the delegation have an annual turnover of between £500,000 (Dh3m) and £25 million.
As a bank, there is obviously a financial component to the services Santander offers its SME clients but many other elements are non financial, according to John Williams, who heads the programme and led the delegation to the UAE. The bank also provides advice on operations, marketing, strategy and entry into new markets.
"SMEs probably need quite a bit of support when they engage in the early stages with international markets because they don't have the resources like BP or Shell might," Mr Williams says. "In terms of making connections, or finding out how to set up a company, or indeed setting up a company, SMEs – which may have one or two or up to 40 staff – don't have a team of people inside it that specialise in the sort of stuff that large corporates always do."
SMEs are considered key drivers of economic growth in most countries, and vital for job and wealth creation. In the UK, they account for 59 per cent of private sector employment and almost half of commercial turnover, according to government figures. In the UAE, they contribute to 60 per cent of GDP and the government has set out guidelines to bolster SME activity as part of its 2020 Economic Vision.
The bank has previously taken similar delegations to Mexico, Brazil and the US. While the financial institution’s presence in the UAE isn’t as strong as it is in those markets – it has a representative office here but doesn’t engage in commercial activities – Mr Williams doesn’t want that to be a limiting factor. Breakthrough has teamed up with Abu Dhabi Commercial Bank to provide on-the-ground services when needed.
The UAE also has certain characteristics that make it particularly appealing to UK business, according to Mr Williams: the country is committed to supporting the growth of local and international businesses; the government has a “phenomenal economic plan” in place; it’s geographic location between east and west is convenient; and the UAE and UK have a long history of relations.
In January, Vince Cable, the UK Secretary for State for Business, Innovation and Skills, launched the UK Trade and Investment (UKTI) Gulf Inward Investment team in Dubai to attract more investment from the UAE to Britain.
The UAE’s current booming growth and infrastructure development is the reason James Whittick, sales and marketing director of fertilizer manufacturer GreenBest, applied to come on the trip. The firm supplies bespoke fertilizer for non agricultural use such as on golf courses. A chance encounter won him a contract in Qatar two years ago and the rampant demand there for his product made him decide to try to replicate that success in the UAE.
“It’s not growing like this anywhere else,” he says.
Also on the trip was Cecile Reinaud, the founder of sophisticated maternity fashion company Séraphine. Her sales went supersonic after the Duchess of Cambridge wore one of her frocks for her first official family portrait with her baby son George and she is now seeking franchise partners. She had meetings with Landmark Group and Majid Al Futtaim Group.
“The market seems underdeveloped,” she says. “It looks like what the market was like in the UK ten years ago where the only players [in maternity wear] were very downmarket, with no option for something more fashionable and of higher quality. Also, online shopping is very backwards.”
While her range is currently stocked in two places in the UAE, Ms Reinaud hopes to have her first store here open in a year.
As well as meeting with potential clients, the delegates also had a briefing set up by the UK’s Department of Trade and Industry on how to do business here and the current economic backdrop. They also met with UK Embassy staff, the British Business Group and the British Centre for Business in Dubai.
Briton Sohan Singh is the founder of International Media Advertising, a media planning and buying company. Because his firm provides a service, rather than a physical product, he says meeting with potential clients in person is essential to creating good business relations.
“The face-to-face is very important,” he says. “They like to see who they are doing business with. They like to establish a relationship. It’s very important from my side because we don’t have assets to sell, it is a service industry, so if they don’t trust and feel they can rely on us they won’t deal with us.”
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