New financing initiative allows SMEs to boost their exports

Dubai: Small and medium enterprises (SMEs) will be able to boost their exports, thanks to the latest financing initiative by Dubai Export Development Corporation (DEDC).

Exporters in Dubai will be able to receive finance up to 33 per cent of their export expenses through the Export Assistance Programme (EAP), launched by DEDC, which could help the businesses cruise through economic stress, officials say.

"The Export Assistance Programme was developed to help private companies in entering their products and services in other markets. This financial assistance scheme intends to assist aspiring and current exporters to undertake export promotion activities to increase opportunities outside the UAE," said Engineer Saeed Al Awadi, Chief Executive Officer, EDC.

"In this scheme, a qualified entity can receive up to Dh100,000 in grant payments during a year. This is equal to one third of the actual expenses not exceeding the applicable expense limits."

The DEDC, an agency of the Dubai Department of Economic Development, Government of Dubai, commenced operations in 2007.

Surging exports

Dubai export and re-export sector is the real driving force behind Dubai's economy. A recent study showed that Dubai's exports and re-exports surged to a higher level despite slow global recovery.

The latest statistics by Dubai Chamber of Commerce and Industry showed a 13.7 per cent increase in exports and re-exports by its members in the first half of 2010.

The DEDC has a very clear objective to be a ‘world-class' export development and promotion body by creating an enabling environment for Dubai's exporters, with the aim of enhancing the competitiveness of Dubai as a preferred trading partner.

It has developed value-added trade support services to UAE based firms exporting through Dubai, for accelerated and profitable expansion of their businesses in foreign markets.

Ahmad Al Banna, a business analyst, said: "For a long time Dubai has been know as a centre for export and re-export that enrich the markets in the region, East Africa, Iran, Pakistan and the neighbouring countries."

The growth in trade relies on demand and supply and most of Dubai exports and re-exports depend on food products and basic consumer items that were not been affected by the economic slowdown, he added.

Boom

Al Banna said, that the world economic crisis has affected most business sectors, not only trade. However, all businesses will flourish in due course. DEDC also offers a series of benefits to Dubai's SMEs, such as participation in trade exhibitions, market research, market and buyer visits. The EAP is available to SMEs that are members of EDC and are licensed by a government entity. SMEs represents about 85 per cent of Dubai's private sector.

How to apply

The application process to become an EAP member has already commenced. English and Arabic applications are available online via www.dedc.gov.ae/en/eap/entry-application/ and www.dedc.gov.ae/ar/eap/entry-application/