‘The Future of SMEs in the UAE’ report launched by MBRSG

‘The Future of SMEs in the UAE’ report launched by MBRSG

- Based on wide fieldwork across mainland and free zone companies across the UAE, the report identifies challenges that face SMEs and Start-ups due and since the pandemic and extracts potential directions for policies and strategic initiatives.

- Two thirds of surveyed SMEs and start-ups cited "negative financial impact" due to the pandemic

- 60% of companies reported lower net profit than pre-pandemic time, while 10% reported profit growth due to the pandemic, and 30% reported no impact on profit from the pandemic.

- 66% of surveyed SMEs said they sought financing during the past two years

- Only 12% of medium-sized enterprises reported cutting training expenses, and 15% cut staff benefits because of the pandemic

- Impact on products and services: 38% of responding SMEs reported shifting their production towards new products and services due to COVID-19 impact

- Impact of COVID-19 relief measures: a third of the surveyed SMEs reported that the government relief measures decreased financial pressures, 9% said they “rescued the company from bankruptcy” and 16% said they helped them retain talent and prevent layoffs.

- Digital transformation: Prior to the pandemic, UAE-based SMEs reported wide challenges implementing online payment systems, but 56% claimed it became "easy" or "very easy" since COVID-19.

Dubai, UAE