80% of small and medium-sized companies in the UAE are optimistic

September 26

 

The second edition of the Small and Medium Enterprises Confidence Index in Eastern Europe, the Middle East and Africa from MasterCard revealed the optimism of small and medium enterprises in the United Arab Emirates regarding revenue expectations for the year 2023, especially after their success in facing many difficult circumstances imposed by… The “Covid-19” pandemic, and the return of these companies’ businesses to prosperity again, indicating that adopting multiple payment channels represents the most prominent opportunity for these companies to achieve growth.

 

 

 

 

 

 

 

The first edition of the Small and Medium Enterprises Confidence Index for the year 2021 addressed the impact of the pandemic on the work of these operating companies, across categories such as sectors, products and services, and touched on the efforts they are making to keep pace with the digital future. As companies recover from the consequences of the pandemic and return to the growth stage, the index showed that 80% of them in the Emirates expect to achieve similar or higher revenues during the year 2023.

 

 

 

 

 

 

 

Optimism about business growth

 

Three-quarters of small and medium-sized companies in the UAE expressed optimism about business growth this year, compared to 2022, and the index highlighted the three most important areas of support that companies in the region are looking forward to: These are: organizational support from governments (94%), employee training and skills improvement (93%), and having better communications infrastructure (91%). Other areas of support that companies indicated are obtaining better data and insights, and guidance and supervision by Experts, as well as the ability to access a wide range of financial services.

 

 

 

 

 

 

 

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Multiple payment channels

 

Businesses in the UAE identified accepting digital payments across multiple channels (92%), training and enhancing employee skills (91%), digitizing business processes (90%), and improving data and analytics insights (90%) as key drivers of business growth for these companies.

 

 

 

 

Digital payment solutions are becoming increasingly widespread and popular in the UAE, with 88% of consumers using at least one emerging payment method in the past year.

 

 

 

 

MasterCard works as a reliable partner for the UAE government to establish regulatory frameworks for small and medium-sized companies and new financial technology. With the aim of supporting the digital transformation efforts of small companies, promoting economic equality, and achieving comprehensive prosperity, the company pledged to connect 50 million small and medium-sized companies worldwide to the digital economy by 2025.

 

 

 

 

Empowering companies

 

Jihad Khalil, General Manager of the Eastern Region in the Middle East and North Africa at MasterCard, said: “The Small and Medium Enterprises Confidence Index this year highlighted the growing importance of multiple payment channels for small businesses in the Emirates. MasterCard is empowering these companies to keep pace with the digital future, expanding their access to a variety of innovative payment options that meet the evolving needs of its customers. Our goal in supporting small businesses is to enhance their vital contribution to economic prosperity.”

 

 

 

 

Cost of doing business

 

As markets witness an increasing shift towards a dynamic economy, SMEs in the UAE continue to face many challenges. These challenges include: inflation (41%), insufficient access to credit (42%), and the decline in the cost of goods and services (65%) ), and the ongoing repercussions of the pandemic (66%); These challenges contributed to an increase in the cost of doing business by (61%).

 

 

 

 

MasterCard seeks to employ its extensive network, advanced technologies, and global partnerships to help companies and enable them to keep pace with the rapid changes taking place in commercial environments and new consumer patterns. The company is working to develop partnerships and cooperative efforts with government and private agencies to enhance financial inclusion. It also looks to stimulate… Educating consumers and merchants about the importance of supporting small businesses and their role in the process of economic development.