Dubai SME to map angel investors in UAE to facilitate SME financing

Dubai SME is in the process of mapping the universe of angel investors in the UAE to help connect these investors with viable startups that show long term growth potential, said a press statement.

It aims to promote equity financing and angel investing as a complementary and alternative  mode of funding for start-ups and SMEs in various stages of growth in the UAE, according to Alexandar Williams, Director of Strategy and Policy, Dubai SME who was speaking about alternatives for SME financing in the second day of SME World Summit 2014”.

SME World Summit 2014, the largest business conference for small and medium enterprises (SMEs) in the Middle East & North Africa region, hosted a panel discussion on “Access to finance for SMEs in the UAE: opportunities and challenges,” which was moderated by Dr. Ibrahim Elbadawi, Director, Macroeconomics and Forecasting, Dubai Economic Council. The discussion examined the various modes of SME financing in the UAE, their efficacy and their role in growing the sector which accounts for 60 per cent of businesses in the UAE.

The panelists for the discussion included Vikas Thapar, CEO, SME Business at Emirates NBD, Alexandar Williams, Director of the Strategy and Policy Division at Dubai SME, Dr. Mohamed Trabelsi, Senior Economist at Dubai Economic Council, Richard Morrison, Regional Head of Corporate Direct and Intermediaries at AXA Insurance, Chris Thomas, CEO of Eureeca, Amir Ahmed, Senior Associate at Pinsent Masons and Jean Marc Paufique, COO of Zawya.

Key issues discussed by the panelists included ‘Access to finance for SMEs for the next 10 years,’ ‘Global financing trends for SMEs,’ ‘Access to SME finance in the UAE - opportunities and challenges,’ and an examination of a new regime of SME finance in the UAE.

Alexandar Williams, Director of Strategy and Policy at Dubai SME, said: “Equity finance is a viable option for SME financing in the region but the UAE lags the developed countries in deploying this means of finance. The market for financing a ticket size of Dh5 million or less for a startup is almost non-existent here. There is however, a great opportunity for this financing method to develop into the mainstay of funding for SMEs as the UAE economy moves towards higher value-added activities, and further improves its business & equity investment laws.”

Vikas Thapar, Head of Business Banking, Emirates NBD, had earlier said: “SMEs remain the backbone of any emerging economy and this holds particularly true for the UAE, which has established itself as the regional business hub with the potential to foster sustainable growth. This growth potential of many high impact SMEs is however constrained by several factors, with lack of business connectivity and networking being a critical deterrent.”



 

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