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Dubai SME report - key statistics [SME Advisor Middle East](SME Advisor Middle East Via Acquire Media NewsEdge) Dubai SME produced a comprehensive report on the state of the Dubai SME sector covering the size, composition, profile and characteristics of SMEs. The first-of-its-kind report comprises a detailed analysis of the economic relevance and business performance of SMEs, based on Dubai's official SME definition. Abdul Baset Al Janahi, Chief Executive Officer of Dubai SME Aimed to provide a multi-dimensional overview of the SME sector in Dubai, the report will help people working in the realms of policy, human resource development, technology solutions, and corporate governance strategies, banking and financial services to evaluate the prevailing trends and needs in the sector, and respond accordingly. His Excellency Sami Al Qamzi, Director General of DED, said: "A state of the sector report on small and medium enterprises in Dubai is essential to enabling this vital sector attract due attention and achieve the goals envisioned for this sector. Having pioneered an official SME definition the natural next step for Dubai is indeed to highlight the potential and gaps in the sector for appropriate action by all concerned. "The total contribution of SMEs to Dubai's gross domestic product stands at 40 per cent and these enterprises are a growing presence in sectors that drive growth in Dubai. Sector-wise, Trading SMEs account for 47 per cent of the total GDP contribution with Services and Manufacturing following with 41 per cent and 13 per cent respectively," Al Qamzi said. Abdul Baset Al Janahi, Chief Executive Officer of Dubai SME, said the report will serve as a reference for all stakeholders in economic development at the federal and local levels besides providing strategic inputs for the five-year strategic plan of Dubai SME, which is in the pipeline. "The report brings valuable insights – it shows that the SME sector in Dubai is critical to the emirate's economic dynamism and has immense opportunities for future; it also shows there is room for improvement at the individual SME level, especially in terms of competitiveness and investment in human resources, innovations and transparency, to name a few," Al Janahi said. Key statistics: - The report reveals 57 per cent of the SMEs operate in Trading while 35 per cent are in the Services sector. However, Service firms are the leading SME employers with 51 per cent of the workforce and Trading comes second with 33 per cent. Meanwhile, Manufacturing shows strong prospects with 16 per cent of the workforce. - Human resource consultants as well as training firms and information technology (IT) firms have significant opportunities in the local SME sector as focus on efficiencies and adoption of IT solutions is apparently insufficient, often leading to low SME productivity. - The report says productivity per person (PPP) among Dubai SMEs is AED 112,253, lower than in other trading and service-oriented economies like Singapore (AED 391,816) and South Korea (AED 214,787). - SMEs that use advanced IT systems account for 21 per cent of the total and those that have a dedicated staff or unit for employee welfare are only 25 per cent but 72 per cent of the SMEs said they evaluate and reward employee performance on a regular basis. - The survey also shows a high export orientation among local SMEs as 51 per cent of them draw some part of their revenues from regional and international markets. Moreover, 60 per cent of Dubai SMEs have more than 20 per cent of their sales revenues provided by export markets. - Manufacturing SMEs have comparatively higher orientation to corporate governance in Dubai as 26 per cent of them have a formal organisation structure or audited financial statements, as against 18 per cent Services firms and 14 per cent Trading companies. - Exposure to external financing among local SMEs remains low and personal wealth remains the major source of capital. Only 10 per cent of the SMEs said they have accessed long-term capital financing. (c) 2014 Corporate Publishing International. All rights reserved. Provided by Syndigate.info, an Albawaba.com company |