Feb 12 2012 |
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SME sector is an untapped goldmine
By Yazad Darasha
12 February 2012
The top 100 micro, small and medium sized companies in Dubai have combined revenues of AED2.3bn, net profit of AED220m, and employ 4,319 people.
The top 100 micro, small and medium sized companies in Dubai have combined revenues of AED 2.3 billion, assets of AED 1.4 billion, aggregated net profit of AED 220 million, and employ 4,319 people, according to data and rankings released on Sunday by Dubai SME, an agency of the Department of Economic Development ( DED ).
Dubai SME announced the first-ever 'Dubai SME 100' ranking of companies in a ceremony at the Dubai World Trade Centre. The companies that made into the first list of top 100 SMEs were honored by His Highness Sheikh Ahmad Bin Saeed Al Maktoum, President of Dubai Civil Aviation and Chairman and Chief Executive of Emirates airline and Group.
"This commitment to promote entrepreneurship and SMEs is in the DNA of Dubai... The Dubai SME 100 initiative will ... encourage [SMEs] to think outside accepted parameters, push their creativity and thus achieve their goals," Sami Dhaen Al Qamzi, Director General of the DED , said at the event.
"SME's are the lifeblood of the country and region," Abdulfattah Sharaf, Chief Executive Officer, HSBC Bank Middle East, UAE, told Zawya. "The Middle East carries huge growth potential and the UAE is one of the world's leading trade hubs, all of which enables a promising future for businesses of all sizes."
Dubai SME received 1,092 registrations for the initiative, of which 196 SMEs moved to stage two. The top 100 were selected and ranked based on complete submissions of financial statements, supplemented by either a management interview or site visit to ascertain facts and evaluate the merits of each case.
Of the 100 ranked SMEs, based on Dubai's official SME definition, 15% are classified as micro enterprises, 52% as small and 33% as medium-sized enterprises. Of the 100, 62 are from the services sector, 13% from manufacturing and 25% belong to the trading sector.
"These top 100 SMEs have persevered to achieve major triumphs for their business models, innovations and brands over the years. They have become successful in their own right," said Abdul Baset Al Janahi, CEO of Dubai SME. "Dubai SME's role is to create a platform for evaluating these top SMEs. Investors in particular will be interested to know who these promising SMEs are, and perhaps invest in them. This will help SMEs gain additional external capital, new talent, markets and brand enhancements," Al Janahi said.
The SME sector in Dubai is a major driver of the economy, accounting for 95% of the enterprises and 40% of the workforce. It contributes 42% of the annual value-add created by the emirate, according to the DED . The SME sector, in addition to being a key source of innovation, new products, services, markets and new business models, also supports a whole business ecosystem and all parts of the industry value chain making up the economy of Dubai and the UAE.
The Dubai SME 100 ranking places a balanced emphasis on financial and non-financial dimensions that affect enterprise performance and development. The non-financial dimensions cover innovation, international orientation, human capital development and corporate excellence.
To qualify for the ranking, the company must have audited financial statements for at least three years, and be an independent entity registered in Dubai (under DED or the free zones). The SMEs were only after they submitted all relevant information voluntarily. Hence, the ranking does not necessarily represent Dubai's top SMEs, but SMEs that have undergone the Dubai SME evaluation process for ranking, the DED clarified.
Also read SME ranking “can be pipeline” for secondary listing market for small firms in Dubai
© Zawya 2012
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