Media ININ Economy We Trust
Media in Abu Dhabi, July 1 2018,
The Securities and Commodities Authority (ESCA), in cooperation with the Ministry of Economy and the Organization for Economic Co-operation and Development (OECD), is launching the world’s first initiative to finance small and medium-sized enterprises (SMEs), said Dr. Obaid Al Zaabi, CEO. Dr. Al Zaabi said that the Authority is in constant coordination with the Ministry of Economy, which will provide regulatory and legislative frameworks to finance small and medium enterprises, stressing that once the regulatory framework is provided, the Commission and the markets will be ready to launch the financing platform for this important category of projects. According to the authority, the SME financing process will be carried out through funds that have the authority to raise funds for these companies. The platform will be similar to collective project financing. The platform will monitor the quality and issues related to accreditation and the implementation of the Corporate Governance Charter. The next step will be to put SMEs in the market when they reach a qualifying stage. SME is the main engine of the country’s economy and is classified as one of the most important mechanisms of strategic direction to support the productive structure, especially as it represents more than 94% of the total number of companies operating in the country distributed by 73% in the wholesale and retail trade sector, 16% in the services sector , And 11% in the industrial sector. The number of companies classified as small and medium enterprises in the country exceeds 350,000, providing jobs for more than 86% of the total private sector workforce, contributing more than 60% of the country’s current GDP. By 2021, according to Ministry of Economy projections.
