BLOOVO.COM research shows SMEs account for 94% of country's companies, contribute 40% of GDP and employ 3.4 million people

Dubai February 6, 2017

Online recruitment portal www.BLOOVO.COM has come out in strong support of RATE SME, the voluntary rating framework launched by Dubai SME to bolster its contribution to Dubai’s GDP from its current 40% to 45% by 2021. The concern has called it a forward-looking step that will equip the sector to support national growth.

The RATE SME initiative asks small and medium firms to submit themselves for a competitive audit that will highlight areas of improvement, identify potential weaknesses, and give them a rating that can help drive new business.

www.BLOOVO.COM has been advocating for strengthening and supporting the country’s SMEs after conducting a comprehensive MENA-wide study that irrevocably pointed to the importance of SMEs in bolstering national economies, employing a new wave of young people, and creating a competitive knowledge economy.

For instance, www.BLOOVO.COM research shows that SMEs compose 94% of all active companies in the UAE, contribute 40% to the UAE’s GDP and collectively employ 72% of the country’s working population. In absolute numbers, there are currently over 350,000 SMEs in the UAE that together employ at least 3.4 million people.

Yet, the country’s SMEs still don’t have the same beneficial impact as their counterparts in developed markets such as the EU. While the UAE benefits from a 40% GDP contribution from its SMEs, the EU region derives at least 55% of GDP from small and medium enterprises.

SMEs in the country also face unique circumstances that initiatives like the RATE SME initiative can help prepare for. For one, they are informally tasked with generating employment for young nationals. An average 40% of the MENA region population is under 25 years old. With the public sector becoming saturated, SMEs are the only viable way of generating jobs at a rate that can match population growth. Regional SMEs have to struggle with challenges that can include a lack of credit, complex business environments, and slower than expected regulatory reforms.

“ www.BLOOVO.COM  recognizes the tremendous role that SMEs play in galvanizing the UAE’s economy and generating employment opportunities for a future generation. Yet, these SMEs have to battle a difficult environment that potentially hampers their true potential. Initiatives like RATE SME are a welcome step towards empowering these businesses to propel the UAE economy towards sustainable long-term growth based on innovation,” says www.BLOOVO.COM President and Co-founder, Iyad Abu Hweij.

The UAE doesn’t just have the largest percentage of its population employed by SMEs across the GCC region, but also leads that region in innovating initiatives to bolster SMEs. The groundwork was laid by Federal Law No. 2 of 2014 that categorised SMEs, established a dedicated council, and determined incentives for small business owners. Dubai, meanwhile, set up the Mohammed bin Rashid Establishment for Small and Medium Enterprises Development – also known as Dubai SME. The organisation enables startups and high-potential SMEs through a range of support services such as development advisory, capability building, licensing, funding and business incubation. RATE SME is the latest step in a long tradition of supporting SMEs.

“RATE SME is a step towards creating transparency and auditing SMEs for competitiveness. Official figures show the move could result in 40,000 new startups that create 370,000 jobs  between them. www.BLOOVO.COM is a staunch advocate for governmental and regulatory assistance in bolstering SMEs, and this initiative shows Dubai’s forward thinking in planning for the future. His Highness Sheikh Mohammad Bin Rashid Al Maktoum has formally declared that the UAE will always be proactive in launching constructive initiatives and in implementing strategies that support entrepreneurs - which is a statement that will built confidence in the market,” says www.BLOOVO.COM CEO and Co-founder Ahmad Khamis.

RATE SME attaches significant weight to an SME’s financial performance. Innovation, corporate governance, international outlook and corporate social responsibility variables also play a role in determining the final rating.

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About www.BLOOVO.com  is an innovative online recruitment platform, which aims at revolutionizing the recruitment processes across the MENA region. The platform functions through the use of Data Science & Advanced Algorithms to offers exclusive never-seen-before innovative features.
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© Press Release 2017