SMEs are a critical component of the UAE’s economy, accounting for over 95% of all enterprises and employing 86% of the private sector workforce Companies receive financial support through preferential loans from the Emirates Development Bank RIYADH: UAE banks provided 81.2 billion dirhams ($22.1 billion) in loans and financial facilities to small and medium-sized enterprises by the end of the first half of 2024, according to official data. The latest figures from the Central Bank of the UAE, or CBUAE, revealed that loans to these enterprises represented 9.5 percent of the total financial support directed to the commercial and industrial sectors, which collectively received 855.7 billion dirhams in funding by June, reported the Emirates News Agency, or WAM, reported. These businesses are a critical component of the UAE’s economy, accounting for over 95 percent of all enterprises and employing approximately 86 percent of the private sector workforce. The UAE government actively supports these firms through initiatives such as the National SME Program, operated by the Ministry of Economy and overseen by the UAE SME Council. The program offers various benefits, including access to business support services such as training, technical expertise, and participation in international exhibitions. In addition, these companies receive financial support through preferential loans from the Emirates Development Bank, along with coordinated marketing and access to market data to assist in strategic decision-making. The UAE SME Council, which oversees the program, focuses on strategic planning, policy development, and fostering sustainable economic growth for the nation’s smaller businesses. In line with these efforts, the Abu Dhabi Department of Economic Development introduced the SME Finance Facilitator Program in November 2023, aimed at improving access to financial services for small and medium firms. This initiative, part of ADDED’s efforts to enhance the ecosystem for these businesses, focuses on facilitating the process of opening bank accounts and securing credit for working capital and long-term growth. Financial facilitators assisted enterprises in understanding financial health checks and preparing necessary documentation, fostering trust and transparent communication with financial institutions. In 2023, Asian and Australian businesses contributed to a 550 percent year-on-year increase in the number of new small companies setting up in Dubai. The emirate’s international chamber reported that 104 new businesses established operations in Dubai during the 12 months leading up to December. This surge supports Dubai’s goal of doubling its economy and solidifying its position as one of the top three global cities.