The Sharjah Investment and Development Authority (Shurooq) has signed a memorandum of understanding (MoU) with Dubai SME, the agency of the Department of Economic Development in Dubai mandated to develop the UAE’s small and medium enterprise (SME) sector.

Under the agreement, the two sides will work together to foster the entrepreneurial spirit in Dubai and Sharjah and achieve the vision of the respective emirates of enabling SMEs to be major drivers of economic, social and cultural development, said a statement.

The two entities aim to create an environment that supports the launch of new businesses and start-up growth, it said.

The MoU was signed by Marwan bin Jassim Al Sarkal, CEO of Shurooq and Abdul Baset Al Janahi, CEO of Dubai SME.

Al Sarkal said: “This is an extremely positive initiative which highlights the importance of cooperation and integration between all government departments and entities in other emirates.”

“Collaborating with such a successful business development organisation as Dubai SME will boost the sector in both emirates, as we share our experience and knowledge,” he said.

“This provides exceptional support for start-up businesses and provides continuous guidance and practical help to those who are have already taken advantage of the outstanding opportunities the emirates have to offer,” he added.

Al Sarkal said: “According to the Ministry of Economy, the 350,000 businesses that fall under the SME category represent 94 per cent of the total number of companies operating in the UAE – with more than 55,200 of those are based in Sharjah.”

“The overall number of these SMEs provides jobs for 86 per cent of the private workforce, reaffirming the importance of supporting this vital sector to boost economic growth and enhance investments,” he stated.

“Together, our organisation and Dubai SME will explore best practices and offer guidance to overcome and eliminate any obstacles that businesspeople may face,” he concluded.

Al Janahi said: “The SME sector in the UAE has evolved remarkably during the past decade chiefly due to support from the government. We are currently working on a SME 2021 Plan drawing on the emphasis given to innovation and entrepreneurship in the Dubai 2021 Plan.”

“The focus of our plan is on encouraging and enabling people who have innovative ideas to turn them into successful business projects that add value to the national economy,” he added.

“Our organisation has also varied programmes to stimulate growth and adoption of innovative business models among SMEs as well as to enhance productivity in the sector eventually integrating them as key players in a competitive, knowledge-based economy as envisioned by the Dubai Plan 2021,” he concluded. – TradeArabia News Service