Small and medium enterprises (SMEs) in the UAE are entering 2025 with a robust sense of optimism, driven by a flourishing digital economy, substantial government support, and improved access to financial solutions, as revealed in the third edition of the Mastercard SME Confidence Index.
The findings indicate that 91 percent of SMEs in the UAE are optimistic about their business outlook, which reflects the nation’s dedication to creating an enabling environment for entrepreneurs and small businesses to grow and thrive. Furthermore, 90 percent anticipate earning similar or greater revenue this year compared to the previous year, marking an increase from the last survey.
Expansion plans driven by confidence
This optimism is motivating expansion strategies, with seven in ten SMEs seeking credit in 2025, primarily to grow their businesses rather than merely maintain operations. The study also emphasizes that digital transformation remains a crucial focus, with a significant majority of SMEs (83 percent) concentrating on improving digital payments, while others are prioritizing financial inclusion and sustainability efforts.
“Small and medium enterprises are the backbone of economies, driving innovation, employment, and resilience. As digital transformation accelerates, SMEs are unlocking new opportunities through digital payments and financial inclusion. Their ability to adapt and grow in a rapidly evolving business landscape reflects the strength of an ecosystem that prioritizes access to finance, digital enablement, and sustainable growth,” stated Dimitrios Dosis, president Eastern Europe, Middle East and Africa, Mastercard.
“As the UAE advances its vision for a thriving digital economy, SMEs play a crucial role in driving innovation and growth. Their confidence in the future reflects not only their resilience but also the impact of an ecosystem designed to support their success. At Mastercard, we are committed to empowering SMEs with cutting-edge payment solutions, real-time insights, and strategic partnerships that help them scale sustainably and securely,” remarked J.K. Khalil, division president, East Arabia, Mastercard.
Digital payments and data insights drive SME growth
The study underscores the vital role of digital payments and data-driven decision-making in the success of SMEs. In the UAE, 92 percent of SMEs now accept digital payments, marking a significant increase from previous years.
Simultaneously, nearly all SMEs (97 percent) acknowledge the importance of enhanced data, analytics, and insights in fortifying their businesses, signifying a shift toward more intelligent, technology-enabled operations.
Access to credit as growth catalyst
With growth at the forefront of SME aspirations, 70 percent of small businesses in the UAE are actively pursuing credit, reflecting their desire for investment and expansion.
Mastercard’s collaboration with financial institutions and fintech partners, such as Geidea, is broadening access to innovative credit solutions. By leveraging digital payment data and insights, SMEs can establish stronger financial profiles, thereby enhancing their capacity to secure financing and manage cash flow effectively.
Public and private sector collaboration to accelerate SME success
The study also shows that over 80 percent of SMEs in the UAE believe that private sector initiatives or partnerships hold the greatest potential to positively influence their businesses.
Mastercard further continues to collaborate closely with government and private sector partners to equip SMEs with the tools, training, and financial solutions they require to thrive. In 2024, the company partnered with Abu Dhabi Global Market (ADGM) to provide an SME-focused business education program, empowering entrepreneurs with knowledge on digital payments and financial management.
Moreover, as SMEs across the UAE welcome 2025 with confidence, the Mastercard SME Confidence Index serves as a vital gauge of their changing needs, challenges, and aspirations. The company remains dedicated to transforming this optimism into meaningful progress by providing SMEs with the tools, insights, and partnerships necessary for sustainable growth.
From facilitating seamless digital payments and enhancing access to credit to promoting financial inclusion and upskilling entrepreneurs through strategic collaborations, Mastercard continues to play a crucial role in shaping a thriving SME ecosystem in an increasingly digital and interconnected economy.
