The biggest world fair is coming to Dubai in 2020 and Expo Consults analyses what this means for small and medium-sized enterprises and entrepreneurs in the region.
Small and medium-sized enterprises have always played a key role in UAE’s continuous development, contributing around 46% of Dubai’s nominal GDP and more than 60% of UAE’s annual GDP. They are also the largest employer in the UAE, accounting for more than 85% of private sector employment according to the 2014 Global SME Survey.
In effect, SMEs have been the engine driving the country’s economic growth, and experts believe the next 5 years could be a golden period for UAE SMEs as they stand to benefit from the upcoming Expo 2020.
The main reasons behind the success of SMEs in the country are a supportive and encouraging government, suitable business regulations and laws, tax-free business setup, leading infrastructure, easy access to multi-national human resources and the proximity of UAE to Asia, Africa and Europe.
UAE has always been a great place for entrepreneurs too. More than 2000 multi-millionaire residents in the country amassed their fortunes through entrepreneurship. UAE offers great opportunities for people looking to set up their own business in the country, with 36 free trade zones or free zones that offer favourable rules and a range of options for new business setup.
With business startup packages ranging from as low as AED 15,000 to AED 50,000, minimum entry barriers and options like 100% business ownership, Dubai Free Zones have become a magnet for local and international investors.
Funding might have been the biggest obstacle for entrepreneurs and new businesses in the past, but with steps taken by UAE financial institutions and the government, there are many favourable policies available now.
With Expo 2020 in sight, experts believe the already impressive SME landscape of the country is about to get a further boost. The vision of the government to ‘bring the World to the UAE’ seems to be well on course. Currently hosting more than 12 million visitors per year, statistics show that more than 20 million people are expected to move in to the region during the Expo.
With this major increase in population, experts believe the kind of infrastructure and businesses that will come into the country will be staggering. The bigger establishments will channel their focus on these major infrastructural changes, making SMEs play a crucial role in running daily services. SMEs are bound to become even more important to big companies as they cannot work independently.
Expo 2020 is expected to create opportunities for everyone in the region and this is seen as the best time to invest in SMEs and entrepreneurial ventures. Individuals and investors looking to make the best of Expo 2020, the best time to start your own business in Dubai is now! Talk to us for more.