A nation or economic backbone is formed by the Small and Medium Enterprises (SME’S). The definition of Small and Medium Enterprises varies for different regions or countries depending on

  • The amount of workforce that is involved in carrying business.
  • Total profits, revenues, shares, and other financial methodologies and their net worth.
  • The employability standards etc. also is a vital factor that determines whether it can be grouped under an SME category or microfinance or large firm/organization category.

Categorization of SME Sector in UAE

An entity or firm is categorized as Small or Medium Enterprise in UAE depends upon two key factors “Amount of Workforce/strength of the workforce and the Year on Year (Annual) sales and turnover in different sectors like Manufacturing, Trade, Energy and services, etc.

Small, Medium, Large Company/Entity in UAE: Sector Wise

  • Trading Sector: – An entity or a company where the workforce quantity ranges from six to fifty employees with an annual turnover of around Dh50 million especially in a trading sector is known to be a small company. Wherein if there are more than fifty to Two Hundred Fifty workforce employed with an annual turnover of Dh250 million, it is a Medium Entity/company. Anything in between these stats in the trading sector in UAE having a yearly turnover of Dh150 million is known as a Microfinance company.
  • Manufacturing Sector: An entity/organization where the overall workforce ranges from ten to hundred with an annual operating revenue/turnover of Dh 50 million paves the way for a small entity/company. Wherein, if there are more than Hundred one to Two Hundred and Fifty sized workforces with an annual turnover worth Dh 250 million, it comes under a Medium company.Any company, having more than Two hundred fifty-one to Three Hundred Fifty sized workforce operating annual turnover worth Dh 500 million, comes under Large company/organization.
  • Services Sector: – In Services sector workforce size for a small entity/company ranges between six to ten with an annual turnover of Dh 20 million and for a medium entity/organization, overall workforce range between fifty-one to two hundred with global operating turnover at Dh 200 million.Any companies/entities above these limits are entitled as large company and below this threshold limit is known as a Microfinance company.
  • Assertiveness and SME’s contribution in UAE Economy: –Such is the assertiveness of the SME sector in UAE that a whopping 96 percent of companies fall under Small, Medium and Microfinance category. They contribute to overall more than a whopping sixty percent of the total workforce attributing to overall 50 percent GDP (Gross Domestic Product) of Dubai, Second biggest GCC (Gulf Cooperation Council) economy. According to UAE’s national growth strategy, an essential mission is to ensure a surge in overall contribution of SME’s to the Arab World economy and employability status.
  • Efforts, Government aids to support SME Sector in UAE:- UAE has always strived hard to surge and maintain a positive growth of the SME sector in the region which is often touted as “Second lifeline” for the Arab league countries after the three-year oil slump beginning 2014 which is slowly regaining back.

According to IMF (International Monetary Fund’s) Christine Lagarde, “Various policy and key decision makers including himself are striving hard to boost up SME business in Arab league world which in turn will boost up the regions overall economic development by one percent year on year and as well prime motive is to generate a whopping fifteen million newer refined Job market within 2025.” The Government as well private-public participations have enforced that SME’s get funds from all forms as still their overall access to finance (lending) is lowest globally at 7-8 percent bank lending instruments. Recently thus Emirates Development Bank has initiated a Dh100 million ‘Credit Guaranteed Scheme’, ADIB (Abu Dhabi Islamic Bank) has waived of debts surmounting to Dh 25 million from SME’s in the region during the start of 2019.

Thus, SME’s form a significant chunk of Industrialized units and regularly provides boost up to strengthen and build up nations GDP to surge at 3.8 percent within 2023. India, Japan, Jordan, Kuwait, etc have established a stable and better relationship with the Arab league world by contributing to the Arab world SME Sector.


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