Expectations of improved revenue over the next quarter

"Central": 70% of owners of small and medium enterprises are "financially restricted" in financing

The Central Bank conducted a survey on small and medium enterprises that included a sample of 629 companies.

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The Central Bank revealed that 70% of the owners of small and medium companies see themselves as "financially restricted", meaning they are unable to obtain financing at a reasonable cost, pointing out that 85% of small and medium companies work in the field of trade and services.

In a report issued yesterday, the Central Bank stated that the results of its first survey on small and medium enterprises, and included a representative sample of 629 companies covering the Emirates of the country, stated that small and micro enterprises constitute 79% of the total sample of the survey, while the largest number of company owners believe that Reducing the guarantees required for borrowing helps reduce the financing cost by half.

According to the Central Survey, more than two-thirds of the owners of the participating companies expect revenues to improve during the next quarter, after the start of the recovery from the emerging corona virus (Covid-19).

Financing funds

The Central Bank added that the survey also showed that SMEs financing funds are less stringent than banks with regard to the need for financial accounts, pointing out that the Khalifa Fund for Enterprise Financing showed that bank credit has improved for clients who have audited accounts, but at the time. The same companies did not necessarily have lower borrowing costs.

The Central Bank indicated that the Khalifa Fund considered the absence of a regulatory framework dedicated to small and medium-sized companies as the most important obstacle to borrowing.

Financial technology

With regard to the provision of financial technology solutions to small and medium-sized companies, the survey showed that digital products (credit guarantee, credit line, etc.), access to market data and research, as the two most important services in the financial technology field, facilitate credit conditions for micro, small and medium enterprises.

He said, "Digital products, in particular, will improve the efficiency and duration of credit disbursement for micro, small and medium enterprises, while access to market data and research will enable better decision-making by small and medium enterprises."

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