UAE mid-market growth outlook subject to economic uncertainties

UAE mid-market growth outlook subject to economic uncertainties

Mid-market players lack the capital resources of larger firms, or the economic support offered to smaller businesses, because they sit somewhere in the middle of the spectrum.

Published: Wed 11 Jan 2023, 4:48 PM

Mid-market players in the UAE’s services and manufacturing industries remain shielded from the debilitating effects of the global economic downturn and surging cost pressures, at least for the time being.

Higher hydrocarbons revenues and the government’s agile leadership and response to economic severities have allowed businesses in the country to withstand financial shocks and outperform many of their global peers.

But experts are concerned that if the market does not improve, the outlook could darken over the coming months.

“The fact of the matter is that there are headwinds. We cannot deny or ignore this,” says Hind Eisa Salim, executive vice-president and head of services and manufacturing at Mashreq Bank.

“Businesses in the UAE are blessed by the swift measures taken by the authorities since the Covid-19 pandemic. But the UAE’s economy and its source markets are global – and external issues will ultimately affect businesses.”

Moreover, industries around the world continue to be buffeted by mitigating factors that are external and uncontrollable in nature. Pandemic-induced supply chain issues persist, while rising interest