The UAE is a gateway for small businesses to flourish

Small businesses are the backbone of any economy and the UAE is no exception.

With a robust and innovative business culture that has been reformed to improve ease of doing businesses, the UAE has become an place where entrepreneurs and small enterprise can grow and thrive.?

A thriving entrepreneurial culture in the UAE

An entrepreneurial spirit is ingrained in the culture of the UAE, as evidenced by a recent survey that found over 60% of employees in the country aspire to become entrepreneurs. ?

This widespread enthusiasm has fueled an abundance of small businesses across various industries, such as technology startups, food establishments like cafes and restaurants and e-commerce.

The top three business sectors perceived to have the most potential for growth in 2023 in the UAE are food and beverage, information and communication technology, and eCommerce solutions.?

The government recognizes the crucial role played by these small businesses and has made significant investments towards fostering their development within a conducive business environment.

The UAE has perfected its formula for success and is home to a number of successful homegrown business, ranked first globally by Global Entrepreneurship Monitor’s 2022 report.?

Government and Finance?Small Businesses

Through effective reform measures and funding initiatives, UAE now offers low-cost avenues for emerging small businesses to thrive successfully.?

The UAE Ministry of Finance launched a new corporate tax relief program for small business with revenue of Dh3 million or less. This will help small businesses to compete with larger corporations and has encouraged entrepreneurship by reducing their corporate tax burden and compliance costs.?

Two-thirds of businesses in the UAE said that government policies and regulations are addressing the challenges faced by small businesses.

The financial industry in the UAE is designed to offer bespoke financial solutions for small and medium businesses while catering to their business objectives. This has made it easier for small enterprises to access funding and has given them the financial tools they need to grow.

Important role of small businesses play in shaping the economy

In the UAE, small businesses have been responsible for creating jobs, driving innovation, and contributing to economic growth.

Two-thirds of entrepreneurs in the UAE are planning to hire for their small business in the next year, which will help to further boost employment rates.

Small businesses also contribute to the diversification of the economy, which reduces the country's dependence on oil revenues. The IMF is forecasting the UAE’s non-oil economy to expand by 4% in 2023 and it will keep rising. This is largely due to the “ongoing business and investment reforms that make it possible for homegrown businesses to thrive .”

Overall, the entrepreneurial culture, supportive government policies, and innovative financial industry have created an environment that is conducive to small business growth. With the majority of UAE small businesses optimistic about their growth prospects in 2023, it is clear that the UAE will continue to be a gateway for small businesses looking to expand and succeed.