The future looks bright for the UAE, with the International Monetary Fund (IMF) predicting growth of 4.4 per cent for 2014 supported by stable oil and gas production from Abu Dhabi in addition to a number of large public projects.

Dubai’s economy has been buoyed by its appointment as the host for the Expo 2020. The emirate is also gearing up as it positions itself as the global capital for the Islamic economy. This drive towards becoming an Islamic hub will be reinforced this month as Dubai hosts the 10th World Islamic Economic Forum (WIEF), often referred to as the Islamic world’s Davos.

The atmosphere in the UAE is that of growth, opportunity and recovery from the economic uncertainty of recent years and is reflected in the performance and ambitions of the UAE’s Small and Medium-sized Enterprise (SME) sector. The Zurich 2014 Global SME Survey found that 26 per cent of SMEs in the UAE grew their domestic operations; this is more than any other country included in the global survey. In addition to this domestic growth, 20 per cent of SMEs in the UAE increased their overseas activities.

There is a distinct sense of optimism from SME organisations in the UAE. Approximately 8 per cent of the UAE’s SMEs express an interest in listing in the next five years, according to research conducted by Dubai SME, an agency of the Department of Economic Development (DED). Such ambitions have been backed by regulatory initiatives, such as the Federal law announced in April 2014 by His Highness Shaikh Khalifa Bin Zayed Al Nahyan, President of the UAE and Ruler of Abu Dhabi, stating that 10 per cent of contracts from government entities will be awarded to SMEs. Efforts such as these have resulted in the UAE now being ranked 23rd in the World Bank ‘Ease of Doing Business Index’ for 2014, up three places since 2013 and up an impressive 54 places from 2008.

In addition to the progress made to support SMEs and to facilitate an open and accessible business environment, government agencies continue to review and look to improve the operating conditions for SMEs. A report from the Dubai Economic Council (DEC) entitled ‘Understanding the SME financing dynamic’ calls for a broadening of the securities that banks can lend against, thereby providing SMEs with access to a broader range of financing solutions. The DEC also stressed the importance of a registry of SME’s assets that would be managed by an independent government body.

In addition to this call to action from the DEC, the IMF stressed in their July 2014 UAE Consultation paper that it should remain a priority for UAE that nationals be steered towards private sector jobs. To this end, the UAE Government is supporting internal labour markets and the SME sector through the launch of agencies such as Dubai SME. Perhaps one of the most significant initiatives from the UAE has been the establishment of the Business Village from Dubai SME, which provides a shared location for SMEs to access key business partners, financial institutions and government organisations.

Much like the UAE, the UK has identified the importance of the SME and mid-market sectors as a means to increase private sector employment and drive economic growth. The UK government should take note of the initiatives implemented by the UAE, which are based on raising the profile of the SME sector in addition to facilitating business operations and building relationships. In the same spirit, the UAE could benefit from more practical, financial support, which was been extended to UK SME companies by the UK government.

With a specific focus on the provision of finance, the UK government has launched several initiatives over the past four years. These include the Funding for Lending Scheme, which incentivises banks to boost their lending to UK businesses, and the Export Working Capital Scheme that allows UK exporters to access working capital finance from lenders, with the UK Government typically guaranteeing 80 per cent of the risk.

According to research conducted in the second half of 2014 by Bank of London and The Middle East (BLME), 35 per cent of UK mid-market companies applied for these government-backed finance initiatives, with the most popular scheme being the National Loan Guarantee Scheme. Through the National Loan Guarantee Scheme, the government guarantees a discount of 1 per cent on standard loan interest rates from participating banks. These initiatives have acted as a catalyst for growth for the SME and mid-market sector allowing companies to employ more staff and increase turnover.

— The writer is the CEO of BLME