Dubai: Shaikh Mohammad Bin Rashid Establishment for Small and Medium Enterprises, an agency under the Dubai Department of Economic Development (DED), yesterday launched Dubai SME100, a ranking system for UAE-based Small and Medium Enterprises (SMEs).
The ranking aims to recognise the SMEs that have made big contributions to Dubai's economy and will serve as a strong credential for enterprises to access new markets and funding.
The Dubai SME100 will rank SMEs based on their performance across a set of financial and non-financial parameters.
"The SME sector is a key catalyst of economic growth in the UAE and the country has one of the most progressive and fast-evolving SME landscape. Dubai has moved to the next level of growth, and in our renewed growth and development outlook, SMEs play a very significant role in creating new value-add to the national economy.
Vibrant growth
"Creating a vibrant growth environment for SMEs is important to attracting new talent as well as investors, who can add value to our economy while they also benefit from our strengths," said Shaikh Ahmad Bin Saeed Al Maktoum, Chairman of Dubai Supreme Fiscal Committee, President of Dubai Civil Aviation and Chairman and Chief Executive of Emirates airline and Group, at the launch of Dubai SME100.
Going by the official definition of the SME, which is any registered firm with a turnover of up to Dh250 million and up to 250 staff, the SME sector in Dubai comprises 95 per cent of the businesses, 42 per cent of the workforce and contributes 40 per cent of the annual GDP.
According to a presentation by Nasser Saidi, chief economist of the Dubai International Financial Centre, the GCC SME segment is likely to contribute an additional $100 billion (Dh367 billion) to the region's GDP and create up to 2 million jobs in the coming years.
"Throughout all negotiations with other countries, we have made SME development a top priority," said Sultan Bin Saeed Al Mansouri, Minister of Economy.
He noted that the government has recently signed MoUs with Germany and South Korea to provide the SME sector with strategic advantages which include increasing their national production and re-export by entering into joint ventures to increase FDI in the UAE. A similar MoU will soon be signed with Italy.
Partnership initiative
Two weeks ago the Ministry of Economy launched a strategic partnership initiative to establish industrial incubators across the GCC.
The ministry also recently signed an MoU with the Techno-Park in Dubai to enhance co-operation on innovation and all aspects of attracting investments to the UAE. With regard to funding, the Khalifa Fund for Enterprise Development has recently increased its funds to Dh2 billion in order to extend its financing services to all emirates.
To be considered for the ranking, SMEs in Dubai can submit their entries online and so far more than 800 eligible entries have been nominated by banks and other stakeholders.
The rankings will be published in October this year to be followed by a special awards ceremony.
