Al-Janahi: Small companies are most affected by the repercussions of "Corona"

The "Mohammed bin Rashid Project Support Fund" is considering delaying the beneficiaries' installments for an additional two months

• The "Mohammed Bin Rashid Establishment for Small Business Development" confirmed that the sector is flexible and able to overcome the effects of the "pandemic".

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• Abdul Basit Al-Janahi: "Dubai has a strong economic system, unparalleled in the region."

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The Mohammed bin Rashid Establishment for Small and Medium Enterprises Development, one of the Dubai Economic Institutions, has stated that it is studying an extension of the delay in the installments of the beneficiaries of the Mohammed bin Rashid Fund to Support Medium and Small Enterprises, for an additional two months, stressing that the small and medium enterprises sector is the most affected by the outbreak of the Corona pandemic.

The Foundation indicated, to "Emirates Today", that it responded, during the current year, quickly to the repercussions of the crisis, when it decided last March to postpone the fund's installments for three months, as part of Dubai's economic endeavor to take the necessary steps to deal with the repercussions that affected the world's economies, Pointing out that the small enterprises sector is resilient and able to overcome these impacts.

Small Projects

The Executive Director of the Foundation, Abdul Basit Al-Janahi, confirmed to “Emirates Today” that “the small and medium enterprises sector is the most affected by the outbreak of the Corona pandemic, but at the same time it is the most flexible in dealing with the current situation.” He expected the sector to begin to recover during the first quarter of Next year, with the start of distributing medical vaccines.

Al-Janahi explained that the "fund", which supports Emirati youth in obtaining appropriate financing for their projects, aims to support small and medium enterprises and finance innovative pioneering projects.

The fund has a team of experts and consultants specialized in supporting small and medium enterprises, to prepare and direct investors from Emirati entrepreneurs towards the best ways to qualify them for obtaining financing.

Al-Janahi said that “(the fund) works to support and finance citizens’ projects, provide various financing solutions, and monitor the commitment of the owners of projects that receive support from the fund, according to the approved system by studying the submitted reports and field visits, as well as reviewing and providing the necessary advice on the feasibility study. And the work plan prepared by the applicant ».

Open up the markets

He added that the decision to open markets in Dubai was a difficult one, but it was correct, as it greatly reduced the harm that could be inflicted on small business owners, pointing out that with the "opening" and the return of small enterprises to work, the impact of the pandemic decreased, as many managed From owners of small and medium enterprises to deal flexibly with the crisis.

He continued, "The workers in small enterprises were aware of the development and the impact of the pandemic on the companies in which they work. Therefore, some project owners did not face a challenge when they decided to reduce some salaries in an attempt to absorb the effects of the crisis."

He explained that many small projects did not bear the repercussions of the closure or the decrease in demand, and responded to the crisis by temporarily stopping activity, indicating that a number of project owners who temporarily stopped, have now started to return, with the taking of measures and precautionary measures, and with flexibility that enables them to gradually return to full Activity.

Project owners

Al-Janahi said that “some project owners are still in the same confrontation with banks and financing institutions, which were not flexible enough to deal with the repercussions, and led to the suffering of the owners of small enterprises,” noting that in this context, the “Foundation” has postponed the payment of the beneficiaries' installments in the Mohammed Fund. Bin Rashid to support medium and small enterprises, for a period of three months last March, and now we are studying the extension of this measure for another two months, especially for entrepreneurs who have not yet been able to overcome the repercussions, as part of the commitment to the directives of the wise leadership to support business continuity, and to support and guide Emirati entrepreneurs, To get the best financing solutions.

He added that "Dubai has a strong economic system, unparalleled in the region, which makes it the most flexible in dealing with crises that could affect the global economy." He expected the small and medium enterprises sector to surpass the "Covid-19" crisis, during the first quarter of the year. Next, with the spread of good news about the adoption of a number of vaccines globally, indicating that the start of the vaccine distribution and the regular operation of airports, and the return of tourism and travel, will have a remarkable impact in the sector, which will be most affected by the indicators of recovery during the first half of next year.

business pioneers

He indicated that Emirati entrepreneurs were able to deal with the crisis, and continued their work at lower costs, and reduce some activities, pointing out that small enterprises are the most flexible due to the decrease in the number of employees in a single project, but they faced a major challenge in dealing with cash flows within the small and medium enterprise. .

He mentioned that "the Mohammed Bin Rashid Establishment for Small and Medium Enterprises Development" deals with this sector, based on the reality of development and not merely providing financing.

Al-Janahi said that “(the corporation) has supported its members in the field of government procurement and speeding up government payments,” adding that the coming period will witness remarkable demand from the local economy, and that it is best suited to start new projects, with production costs falling to record levels, especially office rents, commercial space and rents. Residential.

Fund finances

The Mohammed bin Rashid Fund to Support Small and Medium Enterprises provides multiple types of financing, including the establishment loan, and aims to encourage and motivate citizens to do business, by financing part of the capital needed to establish a project, or financing expansionary operations, and working capital for projects. the list.

It is a non-profit loan with a value ranging between 100,000 and one million dirhams.

The fund also provides a credit loan, which is characterized by its high value for owners of small and medium enterprises, as this loan is financed by the banks with which agreements and memoranda of understanding have been signed, and it also provides a grace period that allows them to cover costs and make profits, in addition to a very reasonable interest rate.

The value of the credit loan ranged between one million and three million dirhams.

It also provides a loan financing bills, which is a loan between 10 thousand and one million dirhams, to provide liquidity to Emirati projects that have contracts and awards with future payments due, and it is not for profit.

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