UAE Business: 60% of SMEs in the UAE ‘posted lower net’ during Covid times – Gulf Digital News

UAE Business: 60% of SMEs in the UAE ‘posted lower net’ during Covid times – Gulf Digital News

Two thirds of surveyed small and medium enterprises (SMEs) in the UAE and start-ups cited "negative financial impact" due to the Covid pandemic.

Some 60% of SMEs in the UAE posted lower net profit than the pre-pandemic time, while 10% reported profit growth due to the pandemic, and 30% reported no impact on profit from the pandemic, said a report titled ‘The Future of SMEs in the UAE - Drafting a Future Roadmap and Lessons for the Post-Pandemic Phase’ launched by the Mohammed Bin Rashid School of Government (MBRSG), in collaboration with the Ministry of Economy and with support from Google.

Some 66% of surveyed SMEs said they sought financing during the past two years while only 12% of medium-sized enterprises reported cutting training expenses, and 15% cut staff benefits because of the pandemic.

Shifting production

About 38% of responding SMEs reported shifting their production towards new products and services due to Covid-19 impact

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.

Prior to the pandemic, UAE-based SMEs reported wide challenges implementing online payment systems, but 56% claimed it became