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Khaleej Times
a day ago
- Business
- Khaleej Times
UAE small businesses show steady optimism despite economic headwinds
The UAE's small and medium enterprises (SMEs) continue to build on the momentum of the resilience demonstrated in recent years. While challenges persist, including rising operational costs, corporate tax implementation, and high borrowing costs, the overall trajectory signals adaptability and optimism among SMEs in navigating the evolving business landscape, a study showed. RAKBank this week released its latest SME Confidence Index, highlighting a promising outlook for sector. Based on insights from over 1,200 UAE-based SMEs collected between October and December 2024, the report – done in partnership with RFI Global – reveals an SME Confidence Index score of 57, a marginal drop by four points from 61 in 2023. Measured against a base score of 50, the findings reflect a stable and optimistic sentiment against a dynamic economic environment. The findings show that optimism remains steady, with over two-thirds (68 per cent) of SMEs viewing the future business environment as favourable, and more than 60 per cent reporting revenue growth over the past two years. Among the SMEs, consumer and retail services remain the highest-performing sector, driven by a continued rise in consumer spending and successful adoption of new business channels. The report also highlights how SMEs across industries are prioritising product innovation and market expansion as key strategies for growth in a competitive landscape. While consumer and retail services SMEs achieved a sector confidence score of 60, construction and manufacturing (57), transport (57), and trading (58) remained steady in confidence, while public services and professional services saw more notable declines to 56, largely due to increased costs and lower confidence in debt servicing. More than three in five SMEs reported an increase in annual revenue over the last two financial years. SMEs with revenue up to Dh30 million posted the highest confidence score at 58, while larger SMEs (Dh30-100 million) dipped to 55. Raheel Ahmed, Group Chief Executive Officer of RAKBank, said: 'Small and medium enterprises are the backbone of every thriving economy, and in the UAE, they play a central role in driving diversification and sustainable development. At RAKBank, we continue to reinforce our commitment to be a trusted partner on their journey, providing the insights, tools and support they need to grow their businesses and contribute to the wider economy.' Over two-thirds of SMEs experienced higher operational costs, while only 39 per cent expressed confidence in meeting debt obligations, down from last year. Twenty two per cent of SMEs now sell their products or services online, and 45 per cent use digital banking channels monthly. Fifty five per cent of SMEs are either on or planning to begin a sustainability journey, with one in three citing it as a short-term business objective. While UAE SMEs remain optimistic, they are also navigating barriers such as increased costs of doing business, rising demand for credit, competitive pressures, and adapting to the corporate tax regime introduced in 2024. To address these issues, many SMEs are investing ambitiously in technology, operational efficiencies, and sustainability strategies aimed at long-term growth. 'SME confidence is still high however moderated slightly due to rising operational and borrowing costs, uncertainty surrounding corporate tax, and a slower growth outlook. While most of the SMEs remain bullish but SMEs, particularly in professional and public services, are cautious about their debt obligations amid ongoing cost pressures,' Vikas Suri, head of wholesale banking, RAKBank, told Khaleej Times. RAKBank is actively addressing SME challenges through digital onboarding, with 92 per cent of accounts opened digitally, as well as tailored solutions for startups and women-led businesses. It has also introduced enhanced services in business banking apps and seamless corporate tax payment integration to improve efficiency. The bank has over Dh10 billion exposure to the SME segment, which is expected to rise this year as well and has recently strengthened its SME lending through a Dh1 billion co-financing partnership with Emirates Development Bank, ensuring funding reaches priority sectors. 'UAE government initiatives like credit guarantee schemes and digital adoption programs further enhance accessibility,' Suri said.
Mid East Info
3 days ago
- Business
- Mid East Info
UAE SMEs show steady optimism despite economic headwinds, says RAKBANK SME Confidence Index 2025
Dubai, United Arab Emirates, June, 2025 – RAKBANK has released its latest SME Confidence Index, highlighting a promising outlook for the UAE's Small & Medium Enterprise (SME) sector. Based on insights from over 1,200 UAE-based SMEs collected between October and December 2024, the report – done in partnership with RFI Global – reveals an SME Confidence Index score of 57. Measured against a base score of 50, the findings reflect a stable and optimistic sentiment against a dynamic economic environment. The 2025 findings illustrate that UAE SMEs continue to build on the momentum of the resilience demonstrated in recent years. Despite a marginal drop in the overall Index score by 4 points from 61 in 2023 to 57 in 2024, the findings show that optimism remains steady, with over two-thirds (68%) of SMEs viewing the future business environment as favourable, and more than 60% reporting revenue growth over the past two years. While challenges persist, including rising operational costs, corporate tax implementation, and high borrowing costs, the overall trajectory signals adaptability and optimism among SMEs in navigating the evolving business landscape. Raheel Ahmed, Group Chief Executive Officer of RAKBANK, commented on the findings, saying: 'This has been a milestone month for RAKBANK's Business Banking Group, reinforcing our commitment to the UAE's dynamic SME sector. We first launched the RAKBANK RFI SME Confidence Index in 2024, providing timely insights into SME sentiment, challenges, and growth outlook across the country. RAKBANK has also been named the UAE's Best Bank for SMEs at the Euromoney Awards for Excellence 2025, a recognition of our continued focus on enabling business success. In a further boost to the SME ecosystem, RAKBANK and Emirates Development Bank announced a strategic AED 1 billion co-financing partnership during the 'Make it in the Emirates' forum, held under the patronage of the Ministry of Industry and Advanced Technology. Small and medium enterprises are the backbone of every thriving economy, and in the UAE, they play a central role in driving diversification and sustainable development. At RAKBANK, we continue to reinforce our commitment to be a trusted partner on their journey, providing the insights, tools and support they need to grow their businesses and contribute to the wider economy.' Key highlights: The report showcases several trends shaping the SME sector in 2025. Consumer & Retail Services remain the highest-performing sector, driven by a continued rise in consumer spending and successful adoption of new business channels. The report also highlights how SMEs across industries are prioritising product innovation and market expansion as key strategies for growth in a competitive landscape. While Consumer & Retail Services SMEs achieved a sector confidence score of 60, Construction & Manufacturing (57), Transport (57), and Trading (58) remained steady in confidence, while Public Services and Professional Services saw more notable declines to 56, largely due to increased costs and lower confidence in debt servicing. Key takeaways include: Overall confidence remains above baseline: While the Index score decreased slightly to 57 from 61 in 2024, it still signals positive sentiment across the board. Revenue growth continues: More than 3 in 5 SMEs reported an increase in annual revenue over the last two financial years. SMEs with revenue up to AED 30 million posted the highest confidence score at 58, while larger SMEs (AED 30-100 million) dipped to 55. Rising costs present challenges: Over two-thirds of SMEs experienced higher operational costs, while only 39% expressed confidence in meeting debt obligations, down from last year. Digital adoption is on the rise: 22% of SMEs now sell their products or services online, and 45% use digital banking channels monthly. Sustainability is gaining attention: 55% of SMEs are either on or planning to begin a sustainability journey, with 1 in 3 citing it as a short-term business objective. Meeting challenges head-on: While UAE SMEs remain optimistic, they are also navigating barriers such as increased costs of doing business, rising demand for credit, competitive pressures, and adapting to the corporate tax regime introduced in 2024. To address these issues, many SMEs are investing ambitiously in technology, operational efficiencies, and sustainability strategies aimed at long-term growth. The report further emphasises the role of financial partners in this equation, with SMEs citing tailored banking solutions as a key support system. This finding underscores RAKBANK's continued mission to empower UAE SMEs with innovative financial products, relevant market data, and strategic guidance. What's especially encouraging from the survey, is the sector's forward-looking mindset. We're seeing increased focus on entering new markets, investing in talent, and modernising payment infrastructure. At RAKBANK, we see our role as a partner in that journey, providing not just financial solutions but also the advisory support needed to help them grow with confidence. About RAKBANK: RAKBANK, also known as the National Bank of Ras Al Khaimah (P.S.C), is one of the UAE's oldest yet most dynamic banks. Since 1976, RAKBANK has been a market leader, offering a wide range of banking services across the UAE. We're a public joint stock company based in Ras Al Khaimah, UAE, with our head office located in the RAKBANK Building on Sheikh Mohammed Bin Zayed Road. The Government of Ras Al Khaimah holds the majority of our shares, which are publicly traded on the Abu Dhabi Securities Exchange (ADX). RAKBANK stands out for its innovation and unwavering commitment to delivering awesome customer experiences. Our transformative digital journey aims to be a 'digital bank with a human touch,' accompanying you during key moments. With 21 branches and advanced Digital Banking solutions, we offer a wide range of Personal, Wholesale, and Business Banking services. Through our Islamic Banking unit, RAKislamic, we provide Sharia-compliant services to make your banking experience seamless, whether you visit us in person or online.
Mid East Info
3 days ago
- Business
- Mid East Info
UAE SMEs show steady optimism despite economic headwinds, says RAKBANK SME Confidence Index 2025 - Middle East Business News and Information
Dubai, United Arab Emirates, June, 2025 – RAKBANK has released its latest SME Confidence Index, highlighting a promising outlook for the UAE's Small & Medium Enterprise (SME) sector. Based on insights from over 1,200 UAE-based SMEs collected between October and December 2024, the report – done in partnership with RFI Global – reveals an SME Confidence Index score of 57. Measured against a base score of 50, the findings reflect a stable and optimistic sentiment against a dynamic economic environment. The 2025 findings illustrate that UAE SMEs continue to build on the momentum of the resilience demonstrated in recent years. Despite a marginal drop in the overall Index score by 4 points from 61 in 2023 to 57 in 2024, the findings show that optimism remains steady, with over two-thirds (68%) of SMEs viewing the future business environment as favourable, and more than 60% reporting revenue growth over the past two years. While challenges persist, including rising operational costs, corporate tax implementation, and high borrowing costs, the overall trajectory signals adaptability and optimism among SMEs in navigating the evolving business landscape. Raheel Ahmed, Group Chief Executive Officer of RAKBANK, commented on the findings, saying: 'This has been a milestone month for RAKBANK's Business Banking Group, reinforcing our commitment to the UAE's dynamic SME sector. We first launched the RAKBANK RFI SME Confidence Index in 2024, providing timely insights into SME sentiment, challenges, and growth outlook across the country. RAKBANK has also been named the UAE's Best Bank for SMEs at the Euromoney Awards for Excellence 2025, a recognition of our continued focus on enabling business success. In a further boost to the SME ecosystem, RAKBANK and Emirates Development Bank announced a strategic AED 1 billion co-financing partnership during the 'Make it in the Emirates' forum, held under the patronage of the Ministry of Industry and Advanced Technology. Small and medium enterprises are the backbone of every thriving economy, and in the UAE, they play a central role in driving diversification and sustainable development. At RAKBANK, we continue to reinforce our commitment to be a trusted partner on their journey, providing the insights, tools and support they need to grow their businesses and contribute to the wider economy.' Key highlights: The report showcases several trends shaping the SME sector in 2025. Consumer & Retail Services remain the highest-performing sector, driven by a continued rise in consumer spending and successful adoption of new business channels. The report also highlights how SMEs across industries are prioritising product innovation and market expansion as key strategies for growth in a competitive landscape. While Consumer & Retail Services SMEs achieved a sector confidence score of 60, Construction & Manufacturing (57), Transport (57), and Trading (58) remained steady in confidence, while Public Services and Professional Services saw more notable declines to 56, largely due to increased costs and lower confidence in debt servicing. Key takeaways include: Overall confidence remains above baseline: While the Index score decreased slightly to 57 from 61 in 2024, it still signals positive sentiment across the board. Revenue growth continues: More than 3 in 5 SMEs reported an increase in annual revenue over the last two financial years. SMEs with revenue up to AED 30 million posted the highest confidence score at 58, while larger SMEs (AED 30-100 million) dipped to 55. Rising costs present challenges: Over two-thirds of SMEs experienced higher operational costs, while only 39% expressed confidence in meeting debt obligations, down from last year. Digital adoption is on the rise: 22% of SMEs now sell their products or services online, and 45% use digital banking channels monthly. Sustainability is gaining attention: 55% of SMEs are either on or planning to begin a sustainability journey, with 1 in 3 citing it as a short-term business objective. Meeting challenges head-on: While UAE SMEs remain optimistic, they are also navigating barriers such as increased costs of doing business, rising demand for credit, competitive pressures, and adapting to the corporate tax regime introduced in 2024. To address these issues, many SMEs are investing ambitiously in technology, operational efficiencies, and sustainability strategies aimed at long-term growth. The report further emphasises the role of financial partners in this equation, with SMEs citing tailored banking solutions as a key support system. This finding underscores RAKBANK's continued mission to empower UAE SMEs with innovative financial products, relevant market data, and strategic guidance. What's especially encouraging from the survey, is the sector's forward-looking mindset. We're seeing increased focus on entering new markets, investing in talent, and modernising payment infrastructure. At RAKBANK, we see our role as a partner in that journey, providing not just financial solutions but also the advisory support needed to help them grow with confidence. About RAKBANK: RAKBANK, also known as the National Bank of Ras Al Khaimah (P.S.C), is one of the UAE's oldest yet most dynamic banks. Since 1976, RAKBANK has been a market leader, offering a wide range of banking services across the UAE. We're a public joint stock company based in Ras Al Khaimah, UAE, with our head office located in the RAKBANK Building on Sheikh Mohammed Bin Zayed Road. The Government of Ras Al Khaimah holds the majority of our shares, which are publicly traded on the Abu Dhabi Securities Exchange (ADX). RAKBANK stands out for its innovation and unwavering commitment to delivering awesome customer experiences. Our transformative digital journey aims to be a 'digital bank with a human touch,' accompanying you during key moments. With 21 branches and advanced Digital Banking solutions, we offer a wide range of Personal, Wholesale, and Business Banking services. Through our Islamic Banking unit, RAKislamic, we provide Sharia-compliant services to make your banking experience seamless, whether you visit us in person or online.
Zawya
3 days ago
- Business
- Zawya
UAE SMEs show steady optimism despite economic headwinds, says RAKBANK SME Confidence Index 2025
Dubai, United Arab Emirates – RAKBANK has released its latest SME Confidence Index, highlighting a promising outlook for the UAE's Small & Medium Enterprise (SME) sector. Based on insights from over 1,200 UAE-based SMEs collected between October and December 2024, the report – done in partnership with RFI Global – reveals an SME Confidence Index score of 57. Measured against a base score of 50, the findings reflect a stable and optimistic sentiment against a dynamic economic environment. The 2025 findings illustrate that UAE SMEs continue to build on the momentum of the resilience demonstrated in recent years. Despite a marginal drop in the overall Index score by 4 points from 61 in 2023 to 57 in 2024, the findings show that optimism remains steady, with over two-thirds (68%) of SMEs viewing the future business environment as favourable, and more than 60% reporting revenue growth over the past two years. While challenges persist, including rising operational costs, corporate tax implementation, and high borrowing costs, the overall trajectory signals adaptability and optimism among SMEs in navigating the evolving business landscape. Raheel Ahmed, Group Chief Executive Officer of RAKBANK, commented on the findings, saying: 'This has been a milestone month for RAKBANK's Business Banking Group, reinforcing our commitment to the UAE's dynamic SME sector. We first launched the RAKBANK RFI SME Confidence Index in 2024, providing timely insights into SME sentiment, challenges, and growth outlook across the country. RAKBANK has also been named the UAE's Best Bank for SMEs at the Euromoney Awards for Excellence 2025, a recognition of our continued focus on enabling business success. In a further boost to the SME ecosystem, RAKBANK and Emirates Development Bank announced a strategic AED 1 billion co-financing partnership during the 'Make it in the Emirates' forum, held under the patronage of the Ministry of Industry and Advanced Technology. Small and medium enterprises are the backbone of every thriving economy, and in the UAE, they play a central role in driving diversification and sustainable development. At RAKBANK, we continue to reinforce our commitment to be a trusted partner on their journey, providing the insights, tools and support they need to grow their businesses and contribute to the wider economy.' Key highlights The report showcases several trends shaping the SME sector in 2025. Consumer & Retail Services remain the highest-performing sector, driven by a continued rise in consumer spending and successful adoption of new business channels. The report also highlights how SMEs across industries are prioritising product innovation and market expansion as key strategies for growth in a competitive landscape. While Consumer & Retail Services SMEs achieved a sector confidence score of 60, Construction & Manufacturing (57), Transport (57), and Trading (58) remained steady in confidence, while Public Services and Professional Services saw more notable declines to 56, largely due to increased costs and lower confidence in debt servicing. Key takeaways include: Overall confidence remains above baseline: While the Index score decreased slightly to 57 from 61 in 2024, it still signals positive sentiment across the board. Revenue growth continues: More than 3 in 5 SMEs reported an increase in annual revenue over the last two financial years. SMEs with revenue up to AED 30 million posted the highest confidence score at 58, while larger SMEs (AED 30-100 million) dipped to 55. Rising costs present challenges: Over two-thirds of SMEs experienced higher operational costs, while only 39% expressed confidence in meeting debt obligations, down from last year. Digital adoption is on the rise: 22% of SMEs now sell their products or services online, and 45% use digital banking channels monthly. Sustainability is gaining attention: 55% of SMEs are either on or planning to begin a sustainability journey, with 1 in 3 citing it as a short-term business objective. Meeting challenges head-on While UAE SMEs remain optimistic, they are also navigating barriers such as increased costs of doing business, rising demand for credit, competitive pressures, and adapting to the corporate tax regime introduced in 2024. To address these issues, many SMEs are investing ambitiously in technology, operational efficiencies, and sustainability strategies aimed at long-term growth. The report further emphasises the role of financial partners in this equation, with SMEs citing tailored banking solutions as a key support system. This finding underscores RAKBANK's continued mission to empower UAE SMEs with innovative financial products, relevant market data, and strategic guidance. What's especially encouraging from the survey, is the sector's forward-looking mindset. We're seeing increased focus on entering new markets, investing in talent, and modernising payment infrastructure. At RAKBANK, we see our role as a partner in that journey, providing not just financial solutions but also the advisory support needed to help them grow with confidence. About RAKBANK RAKBANK, also known as the National Bank of Ras Al Khaimah (P.S.C), is one of the UAE's oldest yet most dynamic banks. Since 1976, RAKBANK has been a market leader, offering a wide range of banking services across the UAE. We're a public joint stock company based in Ras Al Khaimah, UAE, with our head office located in the RAKBANK Building on Sheikh Mohammed Bin Zayed Road. The Government of Ras Al Khaimah holds the majority of our shares, which are publicly traded on the Abu Dhabi Securities Exchange (ADX). RAKBANK stands out for its innovation and unwavering commitment to delivering awesome customer experiences. Our transformative digital journey aims to be a 'digital bank with a human touch,' accompanying you during key moments. With 21 branches and advanced Digital Banking solutions, we offer a wide range of Personal, Wholesale, and Business Banking services. Through our Islamic Banking unit, RAKislamic, we provide Sharia-compliant services to make your banking experience seamless, whether you visit us in person or online. About RFI Global RFI Global is the data and insight partner for the world's financial services community. Since 2006, they have provided tailored subscription-based insight and data solutions for local, regional and global Financial Services players that enable them to make data-driven decisions confidently and quickly.
Al Bawaba
3 days ago
- Business
- Al Bawaba
UAE SMEs show steady optimism despite economic headwinds, says RAKBANK SME Confidence Index 2025
RAKBANK has released its latest SME Confidence Index, highlighting a promising outlook for the UAE's Small & Medium Enterprise (SME) sector. Based on insights from over 1,200 UAE-based SMEs collected between October and December 2024, the report – done in partnership with RFI Global – reveals an SME Confidence Index score of 57. Measured against a base score of 50, the findings reflect a stable and optimistic sentiment against a dynamic economic environment. The 2025 findings illustrate that UAE SMEs continue to build on the momentum of the resilience demonstrated in recent years. Despite a marginal drop in the overall Index score by 4 points from 61 in 2023 to 57 in 2024, the findings show that optimism remains steady, with over two-thirds (68%) of SMEs viewing the future business environment as favourable, and more than 60% reporting revenue growth over the past two challenges persist, including rising operational costs, corporate tax implementation, and high borrowing costs, the overall trajectory signals adaptability and optimism among SMEs in navigating the evolving business Ahmed, Group Chief Executive Officer of RAKBANK, commented on the findings, saying: 'This has been a milestone month for RAKBANK's Business Banking Group, reinforcing our commitment to the UAE's dynamic SME first launched the RAKBANK RFI SME Confidence Index in 2024, providing timely insights into SME sentiment, challenges, and growth outlook across the country. RAKBANK has also been named the UAE's Best Bank for SMEs at the Euromoney Awards for Excellence 2025, a recognition of our continued focus on enabling business a further boost to the SME ecosystem, RAKBANK and Emirates Development Bank announced a strategic AED 1 billion co-financing partnership during the 'Make it in the Emirates' forum, held under the patronage of the Ministry of Industry and Advanced and medium enterprises are the backbone of every thriving economy, and in the UAE, they play a central role in driving diversification and sustainable development. At RAKBANK, we continue to reinforce our commitment to be a trusted partner on their journey, providing the insights, tools and support they need to grow their businesses and contribute to the wider economy.'Key highlightsThe report showcases several trends shaping the SME sector in 2025. Consumer & Retail Services remain the highest-performing sector, driven by a continued rise in consumer spending and successful adoption of new business channels. The report also highlights how SMEs across industries are prioritising product innovation and market expansion as key strategies for growth in a competitive Consumer & Retail Services SMEs achieved a sector confidence score of 60, Construction & Manufacturing (57), Transport (57), and Trading (58) remained steady in confidence, while Public Services and Professional Services saw more notable declines to 56, largely due to increased costs and lower confidence in debt servicing. Key takeaways include:• Overall confidence remains above baseline: While the Index score decreased slightly to 57 from 61 in 2024, it still signals positive sentiment across the board.• Revenue growth continues: More than 3 in 5 SMEs reported an increase in annual revenue over the last two financial years.• SMEs with revenue up to AED 30 million posted the highest confidence score at 58, while larger SMEs (AED 30-100 million) dipped to 55.• Rising costs present challenges: Over two-thirds of SMEs experienced higher operational costs, while only 39% expressed confidence in meeting debt obligations, down from last year.• Digital adoption is on the rise: 22% of SMEs now sell their products or services online, and 45% use digital banking channels monthly.• Sustainability is gaining attention: 55% of SMEs are either on or planning to begin a sustainability journey, with 1 in 3 citing it as a short-term business challenges head-onWhile UAE SMEs remain optimistic, they are also navigating barriers such as increased costs of doing business, rising demand for credit, competitive pressures, and adapting to the corporate tax regime introduced in 2024. To address these issues, many SMEs are investing ambitiously in technology, operational efficiencies, and sustainability strategies aimed at long-term report further emphasises the role of financial partners in this equation, with SMEs citing tailored banking solutions as a key support system. This finding underscores RAKBANK's continued mission to empower UAE SMEs with innovative financial products, relevant market data, and strategic guidance. What's especially encouraging from the survey, is the sector's forward-looking mindset. We're seeing increased focus on entering new markets, investing in talent, and modernising payment infrastructure. At RAKBANK, we see our role as a partner in that journey, providing not just financial solutions but also the advisory support needed to help them grow with confidence.
