Sunday, Oct 02, 2011
Gulf News
Abu Dhabi The small and medium enterprises (SMEs) employ 70 per cent of the workforce in the Middle East and North Africa (Mena) region and yet, they contribute only 30 per cent of the GDP in the region, according to Frederic Sicre, executive director of Abraaj Capital.
“SMEs play an essential role in building a competitive private sector and contributing significantly to employment and economic activity. SMEs employ up to 70 per cent of the workforce in Mena region; however, they only contribute to 30 per cent of the GDP in this region,” said Sicre.
Speaking on the sidelines of the 5th edition of the Massachusetts Institute of Technology (MIT) Enterprise Forum of the pan-Arab region, Sicre said that the Mena region’s SMEs face difficulties in terms of financial facilities from the banking sector. “Although they hire 70 per cent of the workforce in the region, SMEs share of bank loan portfolios of projects is only 8 per cent,” he added.
“In the GCC, SMEs share of bank loan portfolios of projects is 2 per cent which shows that the SMEs are not given due financial facilities to expand and develop,” remarked Sicre.
Fadi Gandour, founder and CEO of Aramex, told Gulf News that SMEs and young entrepreneurs should differentiate their services and business.
Gandour said that SMEs seem significantly more financially constrained than large firms, especially in Mena countries. “If we want to witness a quantum leap in the SMEs and the entrepreneurships in the Mena region, we should invest in ideas to turn them into reality,” he added.
By Shehab Al Makahleh?Staff Reporter
Gulf News 2011. All rights reserved.
