Increasing acceptance of digital payments and extending the utilization of social connections, messaging applications, online markets, and cross-border access were major aspects in enhancing the recovery and stability of micro, small, and medium enterprises, as per a combined investigation functioned by the Department of Economy and Tourism in the Dubai emirate and the Visa Economic Empowerment Institute to evaluate the resilience of small ventures in the emirate throughout the Covid-19.
A whitepaper that resulted from the analysis known as Dubai MSMEs – Digital and stability looks at the digital pilgrimage of MSMEs in the emirate and marks on visa data to give an interpretation of the United Arab Emirates commerce trends.
The statement noted that the pandemic spreadhead to a wave in e-commerce as businessmen shifted rapidly to complete their client’s requirements. The analysis investigated businesses that actively tolerated card-not-present payments as an expression of e-commerce activity. For all businesses in the Dubai emirate, this rate enhanced from 8% in July 2019 to 13% in August 2021, a development of 60%. For small ventures, the ratio enhanced from 7 to 12% over the same tenure, a development of 70%. The Dubai emirate witnessed a statement 83% YoY increase in the score of e-commerce licenses granted in the first half of 2020.
Abdul Baset Al Janahi, CEO of Dubai SME, a firm of the Department of Economy and Tourism in Dubai, stated – “Small and medium enterprises that function in the emirate experience different benefits. The emirate’s continually developing making capable ecosystem gives the perfect terms for SMEs in Dubai to adjust to difficulties. It has been a major aspect moving their strength and sustainability throughout the Covid,”
Improving the digital abilities of SMEs has always stayed a focus for Dubai SMEs, and our struggle in this direction formed a new transformation with the emirate declaring its strategic desire to stand as a prime inventive digital economy. The results of the DET-VEEI analysis confirm that digital is the method ahead for SMEs and the most suitable method to maintain their development.”
Dr. Saeeda Jaffar, Visa’s SVP and Group Country Manager for the GCC region, stated – “The international pandemic and subsequent economic situation have adversely affected all the ventures, with the smallest of corporations doing the most efforts. This is hence inspiring to watch migrants in the emirate – particularly those that have adopted digital commerce – feel cheery about business rescue and development,”
“Supporting MSMEs has been always a top focus for visas and is also the prime to economic healing. The government of Dubai has limited no struggle in evolving a digital infrastructure that facilitates online functions and digital business models for MSMEs in the new normal. Provided our mutual targets, we are satisfied to be able to share the outcomes of this analysis in rapports with DET.”
Major findings from the VEEO survey on MSMEs comprise –
- A prevalence of MSMEs in the emirate enjoy development in 2020. 43% of the observed agencies had positive profit development in 2020. As expected, firms that seasoned the quickest profit development in 2020 were happy about development in 2021.
- The biggest effects of Covid-19 were on career and sales. For most firms, local and international purchases and sales, client bases, and employment were amongst the biggest segments impacted by the Covid pandemic.
- MSMEs adjusted new payment abilities throughout the Covid – and moved away from a few familiar ones. Revving new trends, the emirate has witnessed a constant move away from payments by cheques and cash and towards digital ways. The group of firms in all size classifications still accept cash, but mobile payments, QR codes, formed non-card e-commerce payments providers, and fresh entrants in the payment space maintain achieving utilizers, particularly as compared to pre-pandemic grade. In a remarkable evolvement, more medium agencies reported accepting digital payments than cash in local transactions.
- MSMEs extended their utilization of social connections, messaging applications, and the online market. MSMEs enhanced their digital performance around size classifications. The utilization of these online markets doubled in several terms from their initial pandemic levels.
- The major priorities MSMEs identified in constant healing are getting the client back, complying with diverse products and services, sending to new markets, and enhancing their sales networks. Corporations that sell online placed loans and issues in the bottom half of their robust requirements. As expected digital merchants comprised cybersecurity amongst their top requirements.
- Looking forward, corporations make a scheme to enhance their digital abilities. Corporations in each size classification presented would emphasize extending their digital marketing, abilities, evolving their online sales, and strengthening their utilization of digital payments. About a quarter to a third of corporations, based on the firm size class, have set out to telework prior to or throughout the pandemic, and around another third of corporations reported that they are in search of dating teleworking soon.
Depending on the outcomes of the VEEI survey of MSMEs in the Dubai emirate, and with a perspective on enhancing cooperation between the public and private sectors, DET, and visa gives the following suggestions to further strengthen small ventures in Dubai.
- Focus on digital enablement help for MSMEs.
- Maintain customers in mind when moving digital omnipresence in Dubai and anywhere else.
- Strengthen cybersecurity abilities for small businesses.
- Aid small businesses link to market and utilization e-commerce abilities to export.
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