Latest news with #UAEeconomy
Zawya
2 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
2 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.
Khaleej Times
26-05-2025
- Business
- Khaleej Times
UAE markets show resilience amid global trade optimism
The UAE's financial markets displayed cautious optimism this week, with the Dubai Financial Market (DFM) General Index climbing 0.37 per cent and the FTSE ADX General Index edging up 0.07 per cent. The modest gains reflect a broader global market pause, driven by US President Donald Trump's decision to extend the deadline for proposed 50 per cent tariffs on EU goods until July 9, 2025. This move has fuelled hopes that trade tensions, which have loomed over global markets, may be easing, providing a temporary boost to investor sentiment in the UAE and beyond. In Dubai, the stock index reached a 17-year high last week, underpinned by robust first-quarter earnings and a thriving non-oil economy. Investors increasingly favour UAE stocks over the larger Saudi market, drawn by the country's economic diversification and resilience. Abu Dhabi's market, while quieter, saw steady trading, supported by rising oil prices and limited corporate developments. Aldar Properties, a key player in Abu Dhabi, reported strong revenue from a recent project, though its shares dipped slightly. Similarly, GFH Financial Group maintained a positive outlook from FAB Securities, buoyed by solid Q1 results, despite minor share price declines. The UAE's markets are navigating a complex global landscape. Trading volumes remained subdued due to holidays in the US and the UK, but the extension of the EU tariff deadline has provided a reprieve. Josh Gilbert, a market analyst at eToro, noted that investor sentiment has strengthened over the past month, with markets looking past the 'trade war noise'. He emphasised that the provisional trade truces with the EU and China signal progress, though the lack of permanent resolutions keeps the risk of escalation alive. 'The willingness of the US administration to negotiate is encouraging, but without structural changes to tariff policy, uncertainty persists,' Gilbert said. Regionally, the UAE boosted its financial ties with Azerbaijan through a new agreement aimed at enhancing regulatory exchanges. This deal underscores the UAE's strategic push to deepen economic collaboration, potentially influencing sectors like banking and investment in the coming months. The accord aligns with the UAE's broader vision to position itself as a global financial hub, leveraging its stable economic environment and strategic geographic position. Globally, markets reflected similar optimism. Japan's Nikkei 225 surged over 1.7 per cent, driven by hopes of a US-Japan trade deal, while EuroStoxx futures rose 1.6 per cent, and S&P 500 futures gained about 1.0 per cent, according to Ipek Ozkardeskaya, senior analyst at Swissquote Bank. She highlighted the significance of the postponed EU tariff deadline, which gives European officials until July 9 to negotiate. However, Ozkardeskaya cautioned that upcoming economic data, including May flash inflation figures from major European economies and the US Personal Consumption Expenditures (PCE) report, will be critical in shaping market trajectories. A stronger euro may have mitigated the impact of rising oil prices, she noted, but inflationary pressures remain a concern. Despite the positive sentiment, risks persist. Last week's unexpected tariff threat on Apple underscored the unpredictability of US trade policy under Trump, a dynamic that continues to challenge markets. Gilbert pointed out that while trade progress supports risk assets, investor focus remains on dominant tech stocks, with dip-buying evident during pullbacks. Nvidia's upcoming earnings report is expected to be a key market catalyst, potentially influencing global and UAE investor sentiment. According to market analysts, the UAE's markets are well-positioned to capitalise on their non-oil growth and regional financial partnerships. However, their trajectory will depend on global trade outcomes and economic indicators. As negotiations continue and key data releases loom, UAE investors remain cautiously optimistic, balancing local strengths with global uncertainties, they said.
Zawya
22-05-2025
- Business
- Zawya
Modon Holding, Emaar Properties, Calidus Group and Silal Food & Technology join the National ICV Program
Abu Dhabi-UAE – As part of the efforts to expand the National In-Country Value (ICV) program, a signing of four memoranda of understanding (MoUs) took place between the Ministry of Industry and Advanced Technology (MoIAT) and Modon Holding, Emaar Properties, Silal Food & Technology and Calidus Group. The agreements mark the official entry of the four entities into MoIAT's National ICV Program to benefit from the key enablers and advantages that support growth and competitiveness. The signings took place on the second day of Make it in the Emirates 2025, the UAE's comprehensive economic program hosted by MoIAT, organized by Abu Dhabi National Exhibitions Company Group, and held alongside strategic partners the Ministry of Culture, ADNOC Group, and ADIO. Held under the theme 'Advanced Industries. Accelerated', the event brings together local and international manufacturers, investors, and innovators and runs until May 22 at Abu Dhabi National Exhibition Centre. The agreements aim to strengthen cooperation between MoIAT and the four companies in line with the goals of the National ICV Program. The program is a key component of the UAE's Projects of the 50 and supports the objectives of the National Strategy for Industry and Advanced Technology, which aims to achieve significant economic benefits by redirecting procurement spending by government entities and leading national companies back into the economy. The MoUs were signed by His Excellency Omar Al Suwaidi, Undersecretary of MoIAT; H.E Abdulla Al Sahi, Group Managing Director of Modon Holding, Mr. Ahmad Al Matrooshi, Executive Director of Emaar Properties; Salmeen Al Ameri, Chief Executive Officer of Silal Food & Technology, and Dr. Khalifa Murad Alblooshi, Chief Executive Officer of Calidus Group, witnessed by H.E. Tareq Al Hosani, Chairman of Calidus Group. Modon Holding is an international holding company with business sectors including real estate, hospitality, asset management, investments, events, and tourism. While Emaar Properties is a leading real estate developer, both locally and internationally, and Silal Food & Technology aims to diversify food sources and drive agri-food activity. Calidus Group, recognised as a pioneer in providing advanced land and air defence systems, manufactures military vehicles, aircraft, and state-of-the-art military technologies. This partnership builds on the momentum of the National ICV Program in industrial sector, which has generated AED 347 billion in cumulative local expenditure by the end of 2024, supporting industrial self-sufficiency, job creation, and local economic value. These efforts promote industrial self-sufficiency in vital and priority products, create job opportunities, enhance national economic value, and empower Emirati entrepreneurs under the Make it in the Emirates platform. The fourth edition of Make it in the Emirates is drawing strong local and international participation, including prominent decision-makers from both government and private sector entities, entrepreneurs, investors, industrialists, experts, innovators, and financial institutions, along with the participation of more than 720 industrial companies showcasing their innovative products.
Arabian Business
13-05-2025
- Business
- Arabian Business
astra tech
Astra Tech founder Abdallah Abu Al Sheikh says AI will have a major impact on the UAE economy and make up 14 per cent of GDP by 2030
