The accumulated balance of financial facilities and loans extended by banks operating in the UAE to small and medium-sized enterprises (SMEs) reached Dh81.7 billion in Q1 2024, according to data released by the Central Bank of the UAE (CBUAE).
Loans to SMEs accounted for 9.7% of the total accumulated balance of financial facilities for the trade and industrial sector which stood at Dh841.7 billion by the end of March 2024, the bank further revealed.
The country’s SME sector represents more than 95% of the total number of companies operating in the country and provides jobs to around 86% of the private sector’s workforce, the Ministry of Economy revealed.
In April, the National Bank of Ras Al Khaimah (RAKBANK) reported that the country’s SME sector had successfully moved from a stage of “resilience” to “prosperity”, with two in three SMEs expressing a positive view of the future business environment, following the recovery from the pandemic-related pressures.
Earlier this year, the UAE Ministry of Economy unveiled two new initiatives in the Intellectual Property (IP) and entrepreneurship sectors, that aim to stimulate the growth of startups in the country.
