Arab News, Thu, Mar 28, 2024 | Ramadan 18, 1445
Dubai sees 550% annual rise in global SMEs attracted to the emirate
Emirates:
Asian and Australian businesses helped fuel a 550 percent annual rise in small
and medium enterprises setting up in Dubai in 2023, according to a report.
The emirate’s international chamber has revealed
104 SMEs were attracted to Dubai in the 12 months to the end of December, a
development that underlines its ambitions to double the size of the emirate’s
economy and consolidate its position among the top three global cities.
According to a statement, 32 percent of the firms
shifting to the emirate were from the Middle East and Eurasia, followed by Asian
and Australian SMEs at 29 percent.
Latin America and Europe accounted for 26 percent
of companies, while 13 percent attracted were from Africa.
The top sector for these SMEs was trade and
logistics at 17 percent, followed by IT at 13 percent, and food and agricultural
firms third with 10 percent.
Mohammad Ali Rashed Lootah, president and CEO of
Dubai Chambers, attributed the rise to the emirate’s business-friendly
environment, the ongoing development of services together with favorable
legislation, and the diverse range of investment opportunities available.
He added: “Our network of international
representative offices in key global markets has effectively promoted Dubai’s
business community and highlighted the emirate’s value for companies seeking
global expansion.
“We remain dedicated to contributing to the
objectives of the Dubai Economic Agenda, with a primary focus on attracting
foreign direct investments in both traditional and emerging sectors.”
The growth in SMEs from across the globe moving to
Dubai sits alongside a goal from the emirate’s leadership to see home-grown
small businesses expand overseas.
The total number of representative offices across
the world operated by the Dubai International Chamber increased by 16 in 2023
and now stands at 31.
This expansion received additional fuel in January
when Dubai’s Crown Prince Sheikh Hamdan bin Mohammed announced a 500 million
dirham ($136.16 million) plan to help SMEs tap into global markets.
The initiative was launched in conjunction with
Emirates NBD, Dubai’s biggest lender by market value, and will see the bank
provide financing to companies at competitive rates.
According to a release at the time, the SME sector
accounts for 60 percent of the workforce in the emirate.