UBF unveils literacy handbook for SMEs

The UAE Banks Federation (UBF) recently launched a financial literacy handbook for small and medium enterprises (SMEs) aimed at improving the level financial awareness in the country.

The handbook seeks to equip business owners with knowledge and skills that will enable them to make sound financial decisions and ultimately operate their businesses successfully.

“In an increasingly complex financial environment, it is essential for entrepreneurs — particularly owners of SMEs — to have a strong grounding in the principles of business finance to keep their business afloat. SMEs play a critical role in an efficient and competitive economy, and a thriving SME ecosystem will positively contribute to a society’s economic stability and development” stated Abdul Aziz Al Ghurair, chairman of UAE Banks Federation.

Representing over 60 per cent of the country’s GDP and employing 42 per cent of its workforce, small and medium enterprises (SMEs) form the backbone of the UAE’s economy.

SMEs, which make up 94 per cent of all companies operating in the country, account for a good share of the customer base of local banks, another cornerstone of the country’s economy.

“Financial education offers entrepreneurs a deeper understanding of business strategies and objectives, as well as the availability of financing options and support services. It also leads to proper financial planning, which enables small businesses to maximise their chances of business success by taking advantage of business opportunities and weathering business downturns,” Al Ghurair said.

The handbook urges SME owners to acquire the skills and knowledge in finance and regulatory frameworks.