The United Arab Emirates is becoming the land of opportunity with the emergence of small and medium enterprises (SMEs) offering more jobs, innovation and a much needed boost to the overall economy. The country is in the midst of a financial change, for the better, as key investors continue to help fund SMEs. Traditional bank funding has been a common problem for SMEs because of the business climate where big corporations and companies were the main focus of banks.
However, some outside investments from Hussain al Nowais, chairman of Khalifa Fund, are fueling the success of SMEs and a proposal for a new program may further benefit the nation. Currently as it stands, SMEs make up about 92 percent of the total number of companies in the UAE and more than 86 percent of jobs in the private sector. While it may seem like a significant amount, the President of the UAE, Sheikh Khalifa, is aiming to improve SMEs contributions to the country’s economic output to reach 70 percent by the year 2020.
But the challenge is opening up greater forms of communication and accessibility for Emirati innovators to convey their ideas. It’s without a doubt that innovation and fresh concepts can bolster the creation of new products and services to reach higher economic output contributions which is why Khalifa Fund for Enterprise Development may start a program just for that.
The concept of the incubator program could help Emirati entrepreneurs develop their ideas but it would involve some strategic partnerships and investments from Hussain al Nowais and others. In order for the incubator program to come to fruition, Khalifa Fund has been in discussion with potential partners to possibly develop the mechanisms of action, facilities and services for the Emirati entrepreneurs to utilize. Additionally, the development of digital services to enhance the incubator program is in the works to allow entrepreneurs to submit their ideas and projects through an electronic medium. If the incubator program takes off, SMEs may reach the contribution goal by 2020 thus improving the overall economic strength of the UAE.