The UAE maintains its leadership position in the Middle East in financing with 56% of venture capital investments

The Small Enterprises and Enterprises Council reviews the "Economy" strategy for entrepreneurship and small and medium enterprises

The Council of Small and Medium Enterprises and Enterprises held its first virtual meeting, headed by the Minister of State for Entrepreneurship and Small and Medium Enterprises, Dr. Ahmed Belhoul Al Falasi, in the presence of representatives from the Ministry of Education, the Ministry of Artificial Intelligence, Digital Economy and Remote Work Applications, the Central Bank of the United Arab Emirates, and the Abu Dhabi Global Market , The Dubai International Financial Center, the Dubai Future Foundation, the Hub 71 platform to support emerging technology projects in the Emirate of Abu Dhabi, and the "Sheraa" Entrepreneurship Center in Sharjah, in addition to a number of entrepreneurs and owners of small and medium enterprises. 

During the meeting, the Council reviewed the strategic plan prepared by the Ministry of Economy to stimulate and develop the sector of entrepreneurship and small and medium enterprises, to achieve the UAE's development goals for the next 50 years, and to establish an integrated, supportive and attractive environment for entrepreneurs and owners of small and medium enterprises, which have a fundamental role in economic development, innovation and creating opportunities. New hire.

The strategy focuses on 6 main axes, which are ease of doing business, access to finance, increasing demand, business support, innovation and digital transformation. It will also focus on two main enablers, namely human capital, data and information.

The Council also reviewed the initiatives of the economic recovery and advancement plan led by the Ministry of Economy in cooperation with a number of stakeholders at the federal and local levels and in partnership with the private sector, most notably the initiatives directed at supporting small and medium-sized companies. The council also discussed a number of innovative ideas and solutions to ensure the development of micro and small enterprises. To be medium and large and to enhance its contribution to the growth and diversification of the national economy.

Dr. Ahmed Belhoul Al Falasi 

emphasized that the UAE has made qualitative leaps at the Arab and global level in the sector of small and medium enterprises and entrepreneurship, thanks to the visions of the wise leadership, as it has become a leading international center due to the provision of an attractive legislative and investment environment compatible with the best international standards, building specialized institutions and enhancing the role of innovation. Which has become the core of the country's economic policies and the transition towards a knowledge economy led by distinguished national cadres. 

His Excellency added: “The outstanding performance achieved by small and medium-sized companies is a positive indication of the effectiveness of government measures and proactive solutions that have contributed to maintaining the running of the sector companies on their right path, and in line with the government vision of enhancing the sector’s contribution to the national economy by stimulating entrepreneurship and consolidating its position. A fundamental pillar to reach our goals of building a diversified and sustainable economy that meets our future ambitions. "

In addition, the Board reviewed the achievements made during the past year, which highlight the qualitative leap made by the sector in the average volume of financing granted to each startup company, as the total average financing for each transaction increased from 11.8 million dirhams per deal in the year 2019 to reach 16.2 million dirhams per transaction. In the year 2020 to achieve a growth of 37.5%, in conjunction with the increase in the number of registered companies owned by Emirati citizens by 9.5% compared to the year 2019, in addition to the increase in the number of university graduates in the country who have established start-up companies, bringing the rate of increase in the past three years to 43%, in conjunction with the increase in the number of Emirati graduates who have established entrepreneurial projects by 54% during the same period, as the emerging projects of graduates were concentrated in Abu Dhabi, Dubai and Sharjah.

In this context, he said: “These are important indicators that enhance the status of the startup sector, one of the important and main sectors to continue the process of achievement in the next fifty years. The council is considered a key platform to support the small and medium-sized enterprises sector and involve experts and stakeholders in building the development environment and enhancing the capacity and means. Its growth and increase in its contribution to the state's non-oil gross national product. Supporting entrepreneurship is at the top of the ministry's work agenda, as it is a major pillar to advance the diversification of the national economy. "

In addition, the Council discussed a set of initiatives and cooperation plans to support the enterprise sector and small and medium enterprises, address the challenges facing its growth, accelerate its recovery from the "Covid 19" pandemic, in addition to discussing various measures to reduce and reduce the cost of doing business, and work to diversify options. Financing and facilitating banking procedures, and ways to expand the scope of special incentives and facilities related to government procurement, increase demand for products, and support innovative business and digital transformation.

Entering new global markets 

He also discussed with the members and business leaders the challenges related to the sector, and presented innovative ideas and advanced technical and digital solutions that support the development of micro and small companies and their transformation into medium and large companies, thus contributing to the national economy, by enhancing the competitiveness of these companies and their ability to expand into foreign markets, develop their products and facilitate Its cooperation and partnership with major companies and helping them to enter new global markets. 

He explained that the SME Council will have a fundamental role in setting concrete steps to find practical solutions to all sector challenges, and it will also work on developing strategic policies and plans for the development of small and medium enterprises and enterprises, setting the necessary controls and rules for coordination between the National Program for Small and Medium Enterprises and Enterprises and the concerned authorities, and following up Program performance indicators, through coordination with representatives of relevant authorities in the relevant government and private sector.

A leading position in finance 

Last year, statistics and reports indicate that the UAE maintained its leading position in financing with 56% of risk capital investments, achieving the lead in the Middle East by a large margin than other countries, and it also acquired about 26% of the number of deals, which is the largest share. Of investments in the region.

The UAE is making unremitting efforts to develop the performance of the entrepreneurship and small and medium enterprises sector and increase its contribution to the country's GDP by providing all the tools for success and growth accelerators, as the sector is a source of more than 57% of the jobs for the workforce in the private sector, and the sector’s contribution has reached 52. In percent of the non-oil GDP of the United Arab Emirates in 2017. 

It is noteworthy that

the Small and Medium Enterprises Council undertakes a number of key functions in regards to organizing and developing the small and medium-sized enterprises sector, including proposing and reviewing policies and legislation in support of building the sector, preparing studies and reports related to understanding challenges and finding solutions, and working on developing initiatives and programs to support businesses and small and medium enterprises. And other initiatives, programs and incentives aimed at developing the business environment and helping them expand prosperity.

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