Small and medium enterprise under the microscope at Annual Meetings Programme of Seminars

The session, which is a part of the official Programme of Seminars that precede the Annual Meetings of the Boards of Governors of the World Bank and International Monetary Fund (IMF), will focus on government and private sector roles in developing the SME sector, which economic policymakers have increasingly deemed essential for stable long term economic growth.

The significance of the SME sector in promoting long term sustainable economic growth is especially important in the Middle East region where a majority of businesses are within the SME realm. Therefore, setting up support mechanisms and encouraging the young entrepreneurial spirit helps increase employment opportunities and diversifies economies to be able to better absorb internal and external economic shocks.

"The UAE is at the forefront of regional economies supporting the SME sector, with many government supported and private sector run initiatives and programmes," said Ahmed Al Banna, Assistant General Coordinator for Dubai 2003 and Deputy Director General of the Dubai Chamber of Commerce and Industry.

"This policy runs in tandem with World Bank international strategies in this domain, and we look forward to the insight the 'Microenterprise and Small and Medium Enterprise Development - A Partnership-Based Strategy' seminar will provide."

Realising this potential, the Government of the United Arab Emirates has put into place schemes and programmes to help small and medium enterprise to develop and grow. Given that a majority of businesses in the country are classified as small and medium, such schemes will go a long way in creating critical mass within the sector and provide much needed support and capital to entrepreneurs looking to establish their own companies.

The Mohammed Bin Rashid Establishment for Young Business Leaders, a programme hosted under the Dubai Development and Investment Authority (DDIA), was formed with a vision to nurture the domestic entrepreneurial spirit in Dubai and catalyze the development of the SME sector. An integral component of the programme is a 5% Government procurement programme that mandates that all Government departments complete at least 5% of their procurement activities through the Establishment. Access to an AED700 million (US$190.7 million) fund is also available as well as loans at preferential terms via a network of affiliated banks.

The programme is also mandated to increase awareness with regards to the importance of SME's and encourage young entrepreneurs to take part. The Mohammed Bin Rashid Establishment for Young Business Leaders aims to enable SME's --through access to business services needed-- to effectively manage and grow. These include a physical centre where entrepreneurs can locate new business, access to business mentors and advisory services, and to cost effective business services.

Another AED100 million SME focused programme called Al Tomooh (Arabic for Ambition) co-funded by Sheikh Mohammed and Emirates Bank International has more than 40 successful startups under its belt. Al Tomooh is a financial scheme designed to support small businesses whose total required investment cost does not exceed AED2 million, stimulate creativity and encourage the entrepreneurial spirit amongst UAE Nationals.

The programme was initiated by Ahmed Humaid Al Tayer, Chairman of Emirates Bank International, and is supported by the Dubai Chamber of Commerce and Industry and the Department of Economic Development.

"We have also invested resources in our human capital requirements to drive the SME sector forward. Our university system graduates over 3,000 nationals a year, and with our government sector coming to saturation, we have made alternatives available for the young to integrate into," continued Al Banna.

"International trends have imposed certain economic realities on a global scale, and labour market flexibility is one of them. Constantly training and broadening our skills as an economy is therefore a must if we are to remain competitive on a global scale."

In Abu Dhabi, SME support is being extended to UAE Nationals in the form of practical job training. The "Work Passport Programme" which aims to increase the participation in the private sector and elevate expertise levels in the labour market, provides participants with hands on skill development courses and training workshops across a broad range of business activities. Such skills will be effectively transferred to the private sector and the SME sector as more trainees pass through the programme.

The Annual Meetings of the Board of Governors of the World Bank and International Monetary Fund (IMF), to be held in Dubai on September 23rd and 24th, will be preceded by a series of seminars under the banner of: "The Road to Regional and Global Prosperity: Challenges and Opportunities."

These seminars will be held between September 20th and 22nd and will deal with a variety of macro and micro economic and social issues.