SCA, Ministry of Economy to launch platform for funding SMEs

Small and medium-sized companies are the main drivers of the UAE’s economy

  
Image used for illustrative purpose. Young businessman working in office, using laptop.

Image used for illustrative purpose. Young businessman working in office, using laptop.

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ABU DHABI: The Securities and Commodities Authority, SCA, is working with the Ministry of Economy and the Organisation for Economic Co-operation and Development, OECD, to launch a new international initiative to create a platform for funding small and medium-sized enterprises, SMEs, said Dr. Obaid Al Zaabi, CEO of the SCA.

According to the SCA, the process for funding such companies will involve monetary funds, which will have the authority to collect the necessary funding for these companies. The platform, which will be similar to crowdfunding, will manage quality control and handle issues related to accreditation and applying the Corporate Governance Charter.

Small and medium-sized companies are the main drivers of the UAE’s economy, and are key to supporting its strategic productivity structure, as they represents over 94 percent of the total number of companies in the country, 73 percent of the wholesale and retail trade sector, 16 percent of the services sector, and 11 percent of the industrial sector. The number of such companies now exceeds 350,000, which provide work opportunities for over 86 percent of the total private sector workforce.

They also make up over 60 percent of the country’s GDP, which the ministry predicts to increase to 70 percent by 2021. In Dubai alone, small and medium-sized companies represent close to 95 percent of all local companies and 42 percent of the workforce, while making up some 40 percent of the emirate’s GDP.

The UAE is continuing to help improve the performance of small and medium-sized companies, through initiatives and programmes that provide them with funding.

© Copyright Emirates News Agency (WAM) 2018.

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