Small and Medium business setup in Dubai, is one of the most demanding options of company formation in the commercial capital of UAE. Small and Medium Enterprises also known as SME's reflect the positive and swift growth of the economic system of Dubai. As per some of the news reports in 2015, the SME's epitomize over 95% of businesses regulating in Dubai alone, providing 40% workforce and also liable for the continuous upsurge in the GDP. Certainly, there are no disconnection to state that SME's have become the driving economic force of Dubai as well as have contributed towards various other Emirates.
While Dubai has focused on rolling in knowledge-based business models and innovative global enterprises, the Small and Medium sectors act as a bargaining strength to this new agenda. However, growth of SME's has in turn gathered a lot of attention within the business community around the world as well, creating new-fangled expansions. The Dubai Government along with the Dubai's Department of Economic Development under the agency Dubai SME has taken the initiative to widen the horizon of SME's by encouraging development in the related sectors. These will be rationed on the grounds of human capital, financial and non-financial investment, corporate governance ideologies, and self-assessment.
The small and medium enterprises are backed by countless variants in the city, that positively positions Dubai as an incubator for the SME's. Let's Check out some of the most important characteristics contributing towards SME business setup.
Below are the characteristics that state Dubai as an incubator for the SME's:
- Pro-Business Government
The Dubai Government has always been welcoming towards the foreign investors and when maximum revenue is subsidized from the SME segment it is unquestionable of the government to favor this sector. Moreover, Dubai has an exceptionally proactive pro-business government, with most translucent business protocols in the region.
- DED backed Dubai SME agency
The agency of the Department of Economic Development (DED) in Dubai – the Dubai SME, was formed to, direct and develop the small and medium enterprise and business formation in Dubai. Every interlude, the Dubai SME comes up with new interventions so that the SME sectors have constructive outcomes with regards to growth-orientation leading to economic upliftment. The Dubai SME creates initiatives for SME's, mends laws to fortify the sector, identify and elevate potential of the organizations and forms various other encouragement schemes.
- Private Sector Partners
Claiming the statistics, almost 95% of the business setup in Dubai, are SME's out of which 72% belong to micro-enterprises. Furthermore, the GDP ratio also shows that trading SME's have 47% GDP, service sector SME's account for 41% and another 13% stands for the SME's related to manufacturing – so seeking heavy economic gains the private investors pursuit to capitalize on this market.
- Flexibility Business Modul e
SME business formation in Dubai offers an extremely flexible business module in correlation between intense customization and supportive business procedures. SME's also cater to diverse information systems and integrated standard interference. In simple words, SME's provided a tailored approach towards business setup's that are least compliance through economic restrictions.
- Better Sustainability
With less financial risk and trivial tactics, the growth of the small or medium scale enterprise becomes easier and thus leading to sustainable progress system. Apart from this, the profitable government intrusions and prevalent private sector partnership has also formed a security stimulating sustainability in SME ventures.
- Economic Diversity
The rise in innovation and knowledge-based business has promoted economic diversity within the SME's. This has also created an opportunity for visionaries and innovators to join the main stream, has helped budding entrepreneurs and small scale businessmen to enter the commerce.
- The Expo 2020
The upcoming Expo 2020 has also allowed the SME's to endeavor into new prospects and pioneering procedures, reassuring these enterprises to participate several projects with heavy investment arrangements from the government – with an objective for the sector to progress further.