Small and Medium Enterprises are the most efficient tool to drive economic and social development forward, even in remote and less developed regions, according to an expert.

Nabil Al-Mubarak, chief executive officer of Saudi Credit Bureau (Simah), having launched a new evaluating project for SMEs, said they account for 99.8 per cent of total business enterprises in Europe, 60 per cent of them value added, and 70 per cent of total employment. These percentages will also be reflected in other countries worldwide.

Simah has launched its Taqeem project to help funders assess the financial solvency of SMEs and encourage banks to extend more loans, in the build up to the ninth World Consumer Credit Reporting Conference (WCCRC), set to take place on October 20 and 21 at the Dubai Grand Hyatt Hotel.

The summit has been organised by Simah and supported by Al Etihad Credit Bureau, even as Dubai continues to climb the ranks as one of the leading business hubs, said a statement.

It will cover the subject of credit reporting, bringing together companies and organisations from around the world to discuss developments in this increasingly important industry, it said.

“Banks are hesitant towards lending due to lack of credit information to measure the level of financial solvency, high cost of loan assessment and evaluation, the inability of SMEs to manage credit risks, increased lending costs due to greater credit risks, and the failure of all sides to calculate probability of default,” said Al-Mubarak.

“Taqeem aims at studying all of SME’s overall aspects by analytically reviewing all related financial, economic, administrative and strategic issues.  Simah focuses on all basic data and we have noted the banks’ reluctance to provide loans as they lacked vital information from SMEs,” he said.

“Taqeem will help the deserving SMEs to gather financial support by providing more tools and mechanisms for the bankers to assess credit risks.  There are also moves to raise the level of economic transparency.”

Stuart Pratt, president and CEO of the Consumer Data Industry Association (CDIA), will provide delegates on day two of the conference with a US perspective on the data quality in credit reporting systems.

“The selection of Dubai and the GCC region to host the 9th World Consumer Credit Reporting Conference not only emphasises how important credit reporting is to the global economy but how vital this region is to financial issues in general,” Pratt said.

“Simah has proven to be a leader in the global credit reporting market and that’s the principal reason we were honored that they agreed to partner with CDIA and Association of Consumer Credit Information Suppliers (ACCIS) on this very important conference.

“Not only will the 250 or more delegates in attendance be updated on those issues most critical to their business, but they will do so in a backdrop like Dubai that exemplifies the best in a progressive and forward-looking environment.”

Other subjects to be highlighted at the conference include Cybersecurity, Consumer and SME Lending, Impact of CRA's on the economy and Credit Reporting Growth in the GCC Region. - TradeArabia News Service