Dubai launches $136 million initiative to help SMEs expand globally
Sheikh Hamdan bin Mohammed, Crown Prince of Dubai, has unveiled a Dh500 million ($136 million) initiative to help Dubai-based small and medium enterprises expand in regional and global markets.
The Dubai International Growth Initiative, launched by the government of Dubai in partnership with Emirates NBD, will boost efforts of Dubai SMEs seeking to set up an international presence, the Dubai Media Office said. The initiative is one of several steps the emirate has taken to support businesses and “serves as a strategic commitment to the future development of Dubai’s economy”, the media office said.
“Aligned with the objectives of the Dubai Economic Agenda, D33, to double the size of the economy, the Dubai International Growth Initiative will support the global expansion of SMEs founded in Dubai,” Sheikh Hamdan said.
Dubai, the commercial, financial and tourism centre of the Middle East, has a leading role in the global economy, and SMEs are pivotal in maintaining the emirate’s position as an international hub for business and trade, he said.
“The consistent and robust support for entrepreneurs, investors and SMEs reflects Dubai’s business-friendly environment, making it an attractive destination for both local and global investments,” Sheikh Hamdan added.
SMEs account for more than 90 per cent of registered businesses in the UAE, as well as most job opportunities in the country. Several initiatives have been launched in the past few years, at both the federal and emirate level, to support the growth of SMEs and boost their contribution to the national economy.
Dubai’s latest initiative is open to all SMEs founded in the emirate, irrespective of the owner’s nationality, and will be focused on “strategic sectors” of the economy.
Emirates NBD, Dubai’s biggest lender by market value, will provide financing to eligible companies at competitive interest rates, charging only the Emirates’ Interbank Offered Rate with no additional margin.
The lender will announce details of the financing programme next month, the media office said.
A joint steering committee will be established, comprising representatives from the government of Dubai and Emirates NBD, responsible for guiding the initiative, selecting eligible SMEs, overseeing the implementation and ensuring its success in meeting the emirate’s strategic objectives, it added.
“Facilitating the sustainable global expansion of SMEs is a priority for the government in line with the D33 Agenda,” said Sheikh Maktoum bin Mohammed, Deputy Prime Minister and Minister of Finance.
“These businesses play a pivotal role in the emirate, employing more than 60 per cent of the workforce.”
Dubai has maintained growth momentum since bouncing back from the pandemic-driven slowdown. Dubai’s economy expanded 3.3 per cent annually in the first nine months of 2023, driven by growth in the emirate’s tourism and transport sectors, government data shows.