DUBAI, 23rd November, 2015 (WAM) -- Sultan bin Saeed Al Mansouri, Minister of Economy, today inaugurated the sixth UAE Conference on SMEs and Innovation in Dubai.

In his opening address, Al Mansouri said that SMEs are the key driver of the UAE economy and represent more than 94 percent of the total number of companies operating in the country. Of this percentage, 73 percent of SMEs are engaged in the wholesale and retail trade sector, 16 percent in the services sector, and 11 percent in the manufacturing sector.

The Minister of Economy pointed out that some 350,000 companies in the UAE fall under the SME category and provide jobs for more than 86 percent of the private sector’s workforce. They also currently contribute over 60% of the country’s GDP. The sector is projected to strengthen its contribution to 70 percent within the next six years in line with the National Agenda of the UAE Vision 2021.

Al Mansouri reiterated the UAE’s commitment to creating a distinct legislative environment to regulate the evolution of its national economy, noting that the issuance of Federal Law No.02 of 2014 on Small and Medium-Sized Enterprises and Projects was a quantum leap towards empowering the owners of such projects.

On the important issue of funding, Al Mansouri pointed out that the loans granted by banks to SMEs in the country form about 3.8 percent of their lending portfolio, which is a nominal percentage and is not on par with the actual potential of the sector and its large number of employees.

Al Mansouri also discussed the significance of implementing innovation across SME operations, not only as a symbol of excellence, but because it has become a fundamental necessity for countries seeking to strengthen their economic position on a global level. The Minister said that the federal government of the UAE will spare no effort in enhancing the capabilities of the SME sector and empowering them to achieve greater results, particularly in the field of innovation.

The sixth UAE Conference on SMEs and Innovation also has the participation of Saqr Ghubash, Minister of Labour, and Mariam Al Roumi, Minister of Social Affairs, as well as several senior government officials, private sector representatives and international SME experts.

Following the Minister of Economy’s opening address, session one of the event also included keynote speeches by Mariam Al Roumi, Saqr Ghubash, Charlotte Brogren, Director-General of VINNOVA, the Swedish innovation agency, and Baek Woonmann, Director-General of BMB and SMBA in the Republic of Korea, in addition to a recorded message by Ilse Treurnicht, CEO of MaRS Discovery District, a leading innovation centre located in Toronto, Canada.