Growing acceptance of digital payments and expanding use of social networks, messaging apps, online marketplaces, and cross-border reach are key factors boosting the recovery and resilience of micro, small, and medium enterprises (MSMEs).
This data was revealed in a joint study conducted by the Department of Economy and Tourism (DET) in Dubai and the Visa Economic Empowerment Institute (VEEI), which assessed the resilience of small businesses in Dubai during the Covid-19 pandemic.
“Small and medium enterprises that operate in Dubai enjoy distinctive advantages. The emirate’s constantly evolving enabling ecosystem provides the ideal conditions for SMEs in the emirate to adapt to challenges. This has been a key factor driving their resilience and stability during the pandemic,” said Abdul Baset Al Janahi, the CEO of Dubai SME, an agency of the Department of Economy and Tourism in Dubai.
“Enhancing the digital capabilities of SMEs has always remained a priority for Dubai SME, and our efforts in this direction took a new turn with Dubai announcing its strategic vision to be a leading innovative digital economy. The findings of the DET-VEEI study confirm that digital is the way forward for small and medium enterprises and the best pathway to sustain their growth,” he added.
Whitepaper on small businesses and MSMEs in Dubai
A whitepaper resulting from the DET-Visa study titled ‘Dubai MSMEs: Digital and resilient’ looks at the digital journey of MSMEs in Dubai and draws on Visa data to provide insights into UAE commerce trends.
The report noted that the pandemic led to a surge in e-commerce as business owners moved quickly to fulfill their customers’ demands, according to the state-run news agency, Wam.
The study surveyed businesses that are actively accepting card-not-present (CNP) payments as an indication of e-commerce activity. For all businesses in Dubai, this percentage increased from 8 percent in July 2019 to 13 percent in August 2021, marking a 60 percent growth.
For small businesses, the percentage increased from 7 percent to 12 percent over the same period, marking a growth of 70 percent. Dubai saw a record 83 percent year-on-year (YoY) increase in the number of e-commerce licenses issued in the first half of 2020.
“The global pandemic and resulting economic crisis have severely impacted all businesses, with the smallest of firms struggling the most. It is, therefore, encouraging to see merchants in Dubai, especially those that have embraced digital commerce, feel optimistic about business recovery and growth,” said Dr Saeeda Jaffar, Visa’s SVP and Group Country Manager for GCC region.