Dubai: Government officials, economists will gather to discuss Foreign Direct Investment (FDI) in small in medium-sized enterprises (SME) as they focus on ways to work on investment strategies to develop Dubai and the region as the preferred choice.

This year marks the 5th Annual Investment Meeting (AIM) at the Dubai international Convention and Exhibition Centre from today to Wednesday will bring together experts from more than 140 countries.

Sultan Bin Saeed Al Mansouri, UAE Minister of Economy, will deliver the opening speech focusing on the importance of FDI in the region.

“SMEs are the cornerstone of any economy, given their huge contribution to the Gross Domestic Product (GDP) as well as employment generation. Hence, it is important to have extensive discussions on SMEs being an incubator for creativity and innovation,” Al Mansouri said in a statement.

The UAE’s GDP is less dependent on oil due to diversification of revenue sources and higher inflow of investment, with the industrial sector increasingly becoming a major contributor as a result of attracting industrial investments.

SMEs are facing many obstacles, particularly on the funding side, which calls for increased investment. Participants at AIM 2015 will highlight the significance of boosting investments in such institutions, and ways to address barriers to financing, development and investments.

“The AIM agenda will include investments in general as well as FDI in SMEs and their integration with the overall financial system. It will also shed light on its financial obstacles and suggest solutions. We hope that AIM will come out with tangible results to strongly support this vital sector,” said Dawood Al Shezawi, the CEO of AIM’s Organizing Committee.

The AIM programme includes in-depth debates on patents and orientations of investments highlighting preferences of investors and host countries. It will highlight the views of governments, investors and owners of SMEs, with the goal of finding ideal solutions and ideas for developing this important sector.

Technology transfer

The conference will discuss on the need to encourage technology transfer and dissemination through FDI, along with new developments in foreign direct investment in the energy sector post the massive volatility.

The discussions will also revolve around the collapse in oil prices and its implications for the global economy and growing economies in general and for the Middle East in particular.

SMEs also face obstacles from selling in foreign markets, in light of competition from larger companies, or in light of issues preventing them from entering new markets.

Product development is also a challenge, since these facilities may lack the necessary mechanisms for developing its products, or they might lack expertise or market research, or lagging behind in technological advancement.

Lack of funding is one of the obstacles facing the SME sector, as they are unable to develop their products or expand business. Here is where the role of FDI comes in.

SMEs play a key role in reducing unemployment, especially in some developing economies.

Small and medium-sized enterprises have evolved and grown as a result of innovative ideas of owners, especially young people. These start-up companies are considered centres for innovation and creativity to support the economy, particularly as their activity is concerned with the needs of the community.

SMEs have a shorter establishment process for foreign investors, as they find ready entities for investments and promotion in large open markets.