The importance of increased support towards small and medium enterprises (SMEs) by banks and other financial institution in the UAE, was highlighted by a top professional from BR Communications, a Dubai-based public relations, marketing and design consultancy.

Bahaa Fatairy, managing director of BR Communications, stressed the vital contribution of SMEs to the country’s economy and its role as a major employment generator, said a statement.

“Access to funding has always been a major obstacle facing entrepreneurs looking to start a business or expand their existing operations,” he said.

“While the UAE government has initiated programmes to promote entrepreneurship and provide funding assistance to SMEs, a lot must still be done to stimulate local lenders (i.e. banks) and offer facilities that could further boost the sector,” he added.

Currently, Fatairy said, some banks require an SME to be in operation for two to three years and have monthly credit transactions of around Dh100,000 ($27,211) before a loan application can ever be considered.

“These criteria stifle the SME sector’s growth and limits small-scale business owners’ ability to take the entrepreneurial journey,” said Fatairy. – TradeArabia News Service