Quotes: US MENA   Enter Symbol: NewsLetter: Search: advanced

SMEs play crucial role in boosting Dubai's growth  Join our daily free Newsletter

MENAFN - Khaleej Times - 24/04/2014
No. of Ratings : 0
Add to Mixx!



(MENAFN - Khaleej Times) Pinsent dec and zawya recommend relaxing lending rules

more could be done to enable small and medium-sized businesses to get the finance they need to grow and boost the uaes’ economy according to a new report by international law firm pinsent masons dubai economic council or dec and zawya.

pinsent masons senior associate amir ahmad says the uae has already made progressive steps through organisations such as dubai small and medium enterprise (sme) and the mohammed bin rashid establishment for sme development to support the growth of small business in the emirate but current lending policy and legislation could do with a few tweaks to help dubai become part of the knowledge economy.

“dubai has always been a leader in reform; it’s a business minded place and our report is in the spirit of that tradition.”

he says small and medium businesses play a vital role in dubai’s economy with 94 per cent of businesses falling under the sme category and providing 42 per cent of employment in dubai. “they are the engines of the local economy and they are crucial to growth.” the report ‘sme lending: position on available security’ recommends relaxing lending rules and policies for small and medium businesses as well as establishing a central registry and a separate chamber at the courts to deal exclusively with security interest.

these moves will give smes the ability to get finance in the uae as well as cut down costs and support transparency.

the establishment of a central register would also negate a current legal requirement for businesses to publish their intentions to provide a commercial business mortgage in two arabic newspapers 14 days before registering. although it enhances transparency ahmad says it can also put off investors and give the idea that the business is struggling when it might not be.

ahmad says more lending to smes will help take dubai’s economy to the next level one which is focuses on ideas and innovation. he points to microsoft and facebook’s humble beginnings as an example of why supporting small business that does not yet have strong assets is important to growth.

“they are the champions of commerce right now but they certainly didn’t start that way.”

according to the report 73 per cent of lending to smes in the uae is done against secure assets meaning if you are not able to provide proper collateral it is very difficult to get finance to grow your small or medium sized business.

the problem with this framework amir says is that many start-ups and new businesses do not have those assets to acquire bank loans. in the early stages of most businesses’ development the people involved are not going to own land or have access to funds as a basis for secure lending he says.

“smes are the real innovators. we want these companies to grow; growth of these companies means growth for dubai.”

banks indicated in the report that improvements such as mandatory book-keeping for smes the strengthening of laws enforcing payments eliminating the need to go to court when dealing with loan defaulters and the establishment of a credit bureau would lead to increased lending to smes.

— jenna?khaleejtimes.com


 






  MENA News Headlines
 Aug 1 2014 - India hires masked monkey men to combat macaque menaceKhaleej Times
(MENAFN - Khaleej Times) E very talented group of men has taken to wearing monkey masks imitating their whoops and barks and hiding behind trees to ward off the aggressive animals.India has hired a ...

 Aug 1 2014 - Isolated indigenous make contact with outside world in BrazilKhaleej Times
(MENAFN - Khaleej Times) Azilian experts said the indigenous people likely crossed the border from Peru facing pressure from illegal logging and drug trafficking at home.Isolated native people ...

 Aug 1 2014 - Hopes dim for India landslide survivorsKhaleej Times
(MENAFN - Khaleej Times) Out 160 people were thought to have been living in the dozens of damaged houses.Women mourn a victim of the landslide in Malin village of Pune district in western Maharashtra ...

 Aug 1 2014 - Indian nurses stuck in Libya to be shifted from todayKhaleej Times
(MENAFN - Khaleej Times) Acuation of Indians from the strife-torn Libya will begin on Friday with the first batch of 36 nurses from the southern state of Kerala moving to Tunisia in the morning on ...

 Aug 1 2014 - General Suhag takes over as the new India army chiefKhaleej Times
(MENAFN - Khaleej Times) Neral Dalbir Singh Suhag on Thursday took over as the new chief of the 1.General Suhag assumed charge after his predecessor handed over to him the Chief of Army Staff baton ...

 Aug 1 2014 - European Union formally adopts Russia sanctionsKhaleej Times
(MENAFN - Khaleej Times) E new measures finally agreed earlier this week after months of hesitation target Russias banking defence and energy sectors.The European Union formally adopted broad ...

 Aug 1 2014 - Train hits bus with bridal party in Bangladesh 10 killedKhaleej Times
(MENAFN - Khaleej Times) Lice said the accident occurred at an unguarded railway crossing allowing cars and buses to move freely across the track during the early hours of Friday.A train smashed into ...

 Aug 1 2014 - Gas blasts kill 24 injure 271 in TaiwanKhaleej Times
(MENAFN - Khaleej Times) E explosions believed to have been triggered by gas leaking from underground pipelines were powerful enough to upturn cars and tear open paved roads.Vehicles are left lying ...

 Aug 1 2014 - Friends CC GM score easy victories to enter Al Faraa T20 semisKhaleej Times
(MENAFN - Khaleej Times) The quarter-final matches Friends CC defeated Emistate by four wickets while GM CC coasted to a six-wicket victory over X Eleven.Friends CC defeated Emistate. — ...

 Aug 1 2014 - Romelu Lukaku lost focus as was not first choice says MourinhoKhaleej Times
(MENAFN - Khaleej Times) Joined Chelsea from Anderlecht for 18 million in 2011 but failed to make an impact at Stamford Bridge and spent the 2012-13 season on loan at West Bromwich Albion.Jose ...

more...


 






Google

 
 

Middle East North Africa - Financial Network

MENAFN News Market Data Countries Tools Section  
 

Middle East North Africa - Financial Network
Arabic MENAFN

Main News
News By Industry
News By Country

IPO News
Islamic Finance News
Private Equity News

How-To Guides
Technology Section

Travel Section

Search News

Market Indices
Quotes & Charts

Global Indices
Arab Indices

US Markets Details

Commodoties

Oil & Energy

Currencies Cross Rates
Currencies Updates
Currency Converter

USA Stocks
Arab Stocks
 

Algeria 
Bahrain 
Egypt 
Iraq
Jordan 
Kuwait 
Lebanon
Morocco 
Oman 
Palestine
Qatar 
Saudi Arabia 
Syria
Tunisia 
UAE 
Yemen

Weather
Investment Game
Economic Calendar
Financial Glossary

My MENAFN
Portfolio Tracker

Voting

Financial Calculators

RSS Feeds [XML]

Corporate Monitor

Events

Real Estate
Submit Your Property

Arab Research
Buy a Research

Press Releases
Submit your PR

Join Newsletters


 
© 2000 menafn.com All Rights Reserved.  Terms of Service | Privacy Policy | Contact Us | Advertise | About MENAFN | Career Opportunities | Feedback | Help