Quotes: 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


 


Khaleej Times




  MENA News Headlines
 May 22 2015 - Arab info. ministers agree to promote culture of toleranceKuwait News Agency (KUNA)
(MENAFN - Kuwait News Agency (KUNA)) The Arab information ministers' council concluded its 46th session on Thursday with a final statement stressing the important role of mass media in promoting the ...

 May 22 2015 - Kuwait, Peru eye closer diplomatic ties, cooperationKuwait News Agency (KUNA)
(MENAFN - Kuwait News Agency (KUNA)) Head of the Kuwait's fourth parliamentary friendship committee MP Yousef Al-Zalzalah met with President of the Congress of the Republic of Peru Ana Maria ...

 May 22 2015 - Kuwaiti-Moroccan ties based on shared values - OfficialKuwait News Agency (KUNA)
(MENAFN - Kuwait News Agency (KUNA)) Advisor to Kuwait's Amiri Diwan Mohammad Difullah Sharrar said his country and the Kingdom of Morocco share identical cultural and historical values that formed a ...

 May 22 2015 - Kuwaiti play wins gold at Free Theater FestivalKuwait News Agency (KUNA)
(MENAFN - Kuwait News Agency (KUNA)) The Kuwaiti play 'Hawel Marrah Okhra' (Try Again) won the golden award of the 10th Free Theater Festival on Thursday evening.The silver and bronze medals went to ...

 May 22 2015 - Kuwaitis proud of nat'l pavilion at Expo Milan 2015Kuwait News Agency (KUNA)
(MENAFN - Kuwait News Agency (KUNA)) The spouse of Kuwait's General Consul in Milan and North Italy, Abdul-Nasser Bou-khaddour, praised here role of the Kuwaiti pavilion organizers in Expo Milan ...

 May 22 2015 - Kuwaiti Jiu Jitsu team participates in West Asia tournamentKuwait News Agency (KUNA)
(MENAFN - Kuwait News Agency (KUNA)) Kuwait's Brazilian Jiu Jitsu team will head to Beirut, Lebanon on Thursday to take part in the three-day West Asia tournament.The Kuwaiti team includes seven ...

 May 22 2015 - Kuwait ranks 4th at Fazza wheelchair basketball tourneyKuwait News Agency (KUNA)
(MENAFN - Kuwait News Agency (KUNA)) Kuwait's national team lost their last game to Morocco's 44-71 at the the Seventh Fazza International Wheelchair Basketball Tournament, Dubai 2015, Wednesday ...

 May 22 2015 - OCA cancels Sri Lanka's hosting of Asian Youth Games 2017Kuwait News Agency (KUNA)
(MENAFN - Kuwait News Agency (KUNA)) President of the Olympic Council of Asia (OCA) Sheikh Ahmad Al-Fahad Al-Sabah announced Thursday that the Council has withdrawn the 3rd Asian Youth Games in 2017 ...

 May 22 2015 - Chinese peacekeeping troops head for LebanonKuwait News Agency (KUNA)
(MENAFN - Kuwait News Agency (KUNA)) A new batch of Chinese peacekeeping troops and a 30-member medical team left China for Lebanon Tuesday for peacekeeping mission, state-run China Central ...

 May 22 2015 - Seven airstrikes in Syria, 14 in Iraq target ISIL - coalitionKuwait News Agency (KUNA)
(MENAFN - Kuwait News Agency (KUNA)) Coalition military forces continued to attack ISIL, conducting seven airstrikes in Syria and 14 in Iraq, the Combined Joint Task Force announced on Tuesday."In ...

more...


 






Google

Click to Apply

 
 

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

Islamic Finance News
Private Equity News

How-To Guides
Technology Section

Travel Section

Search News

Market Indices
Quotes & Charts

Global Indices
Arab Indices

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
Economic Calendar
Financial Glossary


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


 
© 2014 menafn.com All Rights Reserved.  Terms of Service | Privacy Policy | Contact Us | Advertise | About MENAFN | Career Opportunities | Feedback | Help