SCCI to liaise with banks to help SMEs cope with crisis

The Sharjah Chamber of Commerce and Industry (SCCI) is to liaise with banks to help small and medium-size enterprises (SMEs) cope with the economic slowdown as part of a comprehensive initiative launched yesterday.

"Most banks already have special divisions for SMEs," said Director-General Hussein Al Mahmoudi. "However, we are looking forward to offering entrepreneurs further facilities to help them deal with the downturn and to expand their businesses locally and internationally."

Farid Arboudi, Relation Manager for SME Banking at Noor Islamic Bank, who attended the launch with other bankers, entrepreneurs and government officials, said the bank was ready to co-operate with the SCCI.

He said: "We are actually looking for investment opportunities in SMEs."

Basem Shahroor, Manager of SME at Sharjah Islamic Bank, said his bank had started financing SMEs a year ago through a special division but, like other lenders, currently had reservations about doing so.

"However, we are pleased to co-operate with the SCCI's initiative to support existing companies," he said.

Shajroor asked whether the chamber would offer any guarantees to banks.

Al Mahmoudi said any guarantees would have to be agreed directly with the client. However, the SCCI recommended that banks seek help from consultants to obtain feasibility reports before offering loans.

The SCCI has hired consultancy firm – Abia – to help with human resources management, deployment of technology and finance and accounting. The company could assist banks when required, said Al Mahmoudi, and its fees were nominal compared with those of other firms.

Al Mahmoudi said that in light of the strategic plan prepared by the SCCI in co-operation with the Economic Development Department, he was optimistic about the future of SMEs.

There are 48,000 companies in Sharjah plus a further 10,000 at the free zone, and out of this 40,000 are classified as SMEs.

"We are preparing a database of all these companies covering their activities and annual revenues. We will contact them to facilitate their participation in exhibitions that will be organised for each sector to help promote businesses on a local level," said Al Mahmoudi.

On the international front, the SCCI plans to arrange visits by businessmen to other countries. Al Mahmoudi added: "Such visits will help businessmen to explore new markets."

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