Bank representatives believe that access to bank financing for small to medium-sized enterprises (SMEs) is still limited due to different hurdles that require intervention by Dubai Chamber of Commerce and Industry.
This was stated at a seminar aimed at raising awareness of the financial challenges and opportunities faced by SMEs in these financially uncertain times. It was organised by the Trade and Business Development Department of Dubai Chamber.
While highlighting the current financial climate, bank representatives said a recent Dubai Chamber research revealed that rejection of applications by banks was generally based on their perception of lending risk to SMEs, inadequate documentation, short operational track records, and the absence of verifiable credit histories. The differing risk perspectives were identified by both SMEs and financial institutions as key hurdles to mutual trust as the speakers focused on communication gaps as well as clarifications about the terms of products for SMEs. The seminar proposed that the chamber should address these issues through training on preparation of financial reports tailored to SMEs' needs.
Dr Belaid Rettab, Executive Director, Economic Research and Sustainable Business Development, said: "This seminar is part of the Dubai Chamber strategy of promoting growth, sustainability and transparency in the business community."
Hamad Buamim, Director General, Dubai Chamber, said, "As part of our mission to represent, support and protect the interests of the business community, the seminar brings together industry representatives who will work towards a joint action plan to face the challenges of the financial crisis."