Rise of Small and Medium Enterprises in Dubai: Asian and Australian Businesses Lead the Way
In a stunning development, the year 2023 witnessed a whopping 550 percent increase in small and medium enterprises (SMEs) setting up shop in Dubai, with a significant contribution from Asian and Australian businesses, as per a recent report.
International Appeal: Dubai Attracts 104 SMEs in a Year
Dubai’s international chamber disclosed that a total of 104 SMEs were drawn to the city in the span of 12 months, showcasing the emirate’s dedication to doubling its economy and solidifying its position among the top three global cities.
Diverse Origins and Sectors
The report highlighted that 32 percent of the incoming firms hailed from the Middle East and Eurasia, while Asian and Australian SMEs made up 29 percent. Latin America and Europe accounted for 26 percent, with 13 percent representing African companies. The predominant sectors for these SMEs were trade and logistics at 17 percent, IT at 13 percent, and food and agriculture at 10 percent.
Dubai’s Business-Friendly Environment
President and CEO of Dubai Chambers, Mohammad Ali Rashed Lootah, credited the surge in SMEs to the emirate’s favorable business climate, ongoing service development, favorable legislation, and diverse investment opportunities. He emphasized the role of the international representative offices in promoting Dubai’s business community and showcasing the emirate as a valuable destination for global expansion.
Global Expansion and Local Support
In alignment with Dubai’s vision of supporting local SMEs to expand internationally, the number of representative offices operated by the Dubai International Chamber grew by 16 in 2023, reaching a total of 31. This growth was further boosted by a 500 million dirham ($136.16 million) initiative launched by Dubai’s Crown Prince Sheikh Hamdan bin Mohammed in January, in partnership with Emirates NBD, to assist SMEs in accessing global markets.
Driving Economic Growth and Empowering the Workforce
With SMEs accounting for 60 percent of the workforce in Dubai, initiatives like these are crucial for stimulating economic growth and fostering entrepreneurship in the emirate. Dubai remains committed to attracting foreign direct investments and supporting the growth of both traditional and emerging sectors to solidify its position as a global business hub.