Small and medium-sized companies (SMEs) in the UAE, especially in Dubai, are optimistic about the rest of 2023.
They hope to do more in the world after COVID than stay alive. This was what the second Mastercard SME Confidence Index for Eastern Europe, the Middle East, and Africa (EEMEA) showed.
The first SME Confidence Index looked at how the pandemic has affected SMEs across businesses, goods, and services, as well as how they are getting ready for a digital future. As a follow-up, the second poll version showed that small companies in the UAE are optimistic about business growth and that omnichannel payments give them the best chance to do so.
As companies recover from the pandemic and get back to growing, a study shows that 80% of small and medium-sized businesses (SMEs) in the UAE expect to make the same amount of money or more in 2023.
“This year’s SME Confidence Index shows how important digital payments are becoming for small businesses in the UAE. It also shows how positive SMEs are about the market’s many possibilities. Mastercard is giving small and medium-sized businesses (SMEs) the tools they need to grow online and get more access to new payment choices and resources that meet their changing needs and customers’ needs. “By helping small businesses, we hope to increase their important role in long-term economic growth,” said J.K. Khalil, Mastercard’s Cluster General Manager for MENA East.
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UAE SMEs anticipate the future.
Nearly three-quarters of the nation’s small and medium-sized enterprises (SMEs) are optimistic about business growth this year compared to 2022.
SME growth in the Middle East and North Africa (MENA) depends on employee training and upskilling (93%), financial services (92%), and telco infrastructure (91%). Information and guidance from industry specialists might also help.
Mastercard Academy’s “The Entrepreneur’s Odyssey” is a groundbreaking digital education platform that helps small businesses flourish by combining world-class academic and business resources. It was made to aid SMEs during this process. Mastercard is also working with Women Choice, an international organisation that helps women improve their personal and professional lives, to create one million employment opportunities for women in MENA. This will boost the local economy.
Mastercard also partnered with Travelling, the premier MENA B2B e-marketplace, in January to provide UAE SMEs with some perks to help them participate in the digital economy.
Top growth drivers include digital payment services.
UAE SMEs say omnichannel digital payments (92%), training and upskilling people (91%), digitizing business operations (90%) and improved data, analytics, and insights (90%) fuel growth.
UAE customers have adopted more digital payment methods in the last year, with 88% using at least one.
Mastercard is the government’s trusted partner in helping small companies go digital, promoting economic equality and inclusive prosperity. The company promises to connect 50 million SMEs to the digital economy by 2025.
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Over 50% of UAE SMEs fear cost increases.
A shifting market presents many challenges for UAE SMEs. More than 42% of UAE SMEs say they can’t grow because they don’t have enough money, 65% say their products and services are more expensive, and 65% still feel pandemic effects. Sixty-one per cent of SMEs feel they raise business costs significantly.
Despite the UAE’s economic woes, Mastercard works with many enterprises to help small businesses, especially new ones, succeed. April brought new financial and digital services from Mastercard and DIFC Launchpad. The programme aids over 200 startups, and over 100 “scale-ups” have created 8,000 jobs and raised $544 million in venture funding.
SMEs can react to changing business conditions and buying behaviours thanks to Mastercard’s worldwide connections, innovative technology, and extensive network. Through government and private sector partnerships, the company helps people receive money and establish small enterprises.