According to a Visa survey, 93 percent of small and micro-businesses (SMBs) in the United Arab Emirates (UAE) want to go global and tap into overseas markets. With the rising prominence of digital payment solutions, these entities are “expanding into new geographies as a focus for growth.”
The said percentage notably surpasses the global average of 79 percent, signifying the UAE’s increasingly outward-looking business landscape.
From ‘survival’ to ‘growth mode’
“It used to be that only big businesses could scale to access customers across the country or around the world, but today’s small business owner can be virtually borderless,” expressed Saeeda Jaffar, Visa’s senior vice president and group country manager for Gulf Cooperation Council (GCC).
“We’re seeing the small business mindset shift from survival mode to growth mode, as small businesses harness the power of digital payments to improve efficiencies, reach new audiences, and simply thrive in today’s increasingly digital world,” she further emphasized.
Read: SMEs must embrace digital transformation
More cashless transactions
Visa’s survey also revealed that 100 percent of the respondents expressed their goal to transition to a cashless model “someday.” Of these, nearly half (42 percent) plan to make this transition within the next two years.
As digital payments gain widespread acceptance, the majority of consumers (75 percent) could increase their usage of digital payment methods this 2023. Moreover, 83 percent of UAE consumers reported feeling comfortable with making cross-border purchases. This reflects a high level of confidence in global online transactions, considering that the global average hovers at 72 percent.
Role in economic expansion
In the UAE, small and medium-sized enterprises (SMEs) are pivotal in driving the country’s economic landscape. As of mid-2022, the UAE had approximately 557,000 SMEs. They constitute a substantial 63.5 percent contribution to the non-oil gross domestic product (GDP).
In the years to come, the UAE will see a remarkable increase in SME numbers. Specifically, an estimated one million SMEs are anticipated to emerge by the year 2030. This prediction supports the country’s goal to diversify its economy in an effort to shed its oil reliance.
Under the UAE’s Operation 300 billion, the Emirates Development Bank (EDB) has specifically allocated AED30 billion to boost priority industrial sectors. Notably, the bank will contribute to financing around 13,500 SMEs.
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