ABU DHABI: The UAE’s economy minister reiterated the importance of cooperation of among Arab countries to boost trade and business as the region grapples with instability, low oil prices and a slowing economy.
“It is very important we work together and cooperate in specific areas to enhance exports and imports. This has become important like never before. We are meeting under the shadow of low oil prices, instability in the Arab world and slowing international economy,” Sultan Bin Saeed Al Mansouri, UAE Minister of Economy, said during the 17th Arab Businessmen and Investors conference in Abu Dhabi.
Oil prices have plunged by more than 50 per cent in the last one year and the Arab world is going through tumultuous times specially after the Arab spring of 2011.
Small and Medium Enterprises (SMEs) can play an important role in the economic growth of the country, Al Mansouri said, adding there was a funding gap to the tune of $110 billion (Dh404 billion) to $140 billion for SME sector in the Arab world.
“The UAE is focusing on promoting entrepreneurship and supporting the SME sector,” he said, adding that innovation is the way to build the future of the UAE.
In June this year, the UAE cabinet endorsed the National Programme for Small and Medium Enterprises (SMEs) to give a boost to SMEs across the country.
Speaking to reporters on the sidelines of the conference, Abdullah Saeed Al Darmaki, chief executive officer of Khalifa Fund For Enterprise Development, said in the last two years, around Dh200 million worth of loans were provided to SMEs, especially the start-ups.
“In the last couple of years, what we have seen is the value of the loan or the amount of the loan specially in the start-ups has come downs simply because the economic landscape in the UAE has been stabilising and has become more economically competitive for SMEs to open their businesses. An average of about Dh1.4 million is the ticket size for start-up businesses,” he said.
Industry experts at the conference discussed some of the challenges facing the Arab world including food security. Khadim Al Dari, Chairman of the Board, Al Dhahra Agricultural company in the UAE, said there should be a clear strategy in agriculture.
“We need greater funding and a long period of planning so that investors can invest,” he said. He added that accessibility of transportation and availability of fertile soil are two important criteria for the growth of the agriculture industry in the Arab world.
