Dubai SME 100: Recognising quality
Dubai SME, an agency under the Dubai Department of Economic Development (DED), mandated to develop the small and medium enterprise (SME) sector, announced the launch of Dubai SME 100, the first-ever ranking of top-performing and fast-growing SMEs in Dubai.
The rankings aim to recognise and celebrate the SMEs that have made a difference to Dubai’s economic landscape, while also establishing clear benchmarks to enable the creation of bigger, better, sustainable and globally-oriented enterprises.
Dubai SME 100 follows the successful launch of the first official definition of SMEs in Dubai in 2009, which is defined as any Dubai-registered firm with a turnover of up to AED 250 million and employs up to 250 staff. Based on this definition, the Dubai SME Sector comprises 95% of the total enterprise population and employs 42% of the Dubai workforce, and contributes 40% of the Emirate’s value add.
The Dubai SME100, which will rank SMEs based on their performance across a set of financial and non-financial parameters, will now serve as a strong credential for enterprises to access new markets and funding for capacity building and expansion.
The launch of Dubai SME 100 is in line with the core strategy of Dubai SME to nurture promising and growing SMEs, and to make Dubai the global entrepreneurship and SME development hub. It indicates the enhanced focus of the Government of Dubai on SMEs as an enabler of long term social and economic development.
“Dubai SME 100 will objectively indicate the competitive positioning of the top SMEs and also serve as an invaluable tool to identify the capability development gaps of SMEs and address them,” said His Highness Sheikh Ahmed Bin Saeed Al Maktoum, Chairman of the Dubai Economic Sector Committee and Chairman & CEO of Emirates Group.
The ranking also recognises the growing importance of SMEs as a driver of innovation, entrepreneurship and economic diversification as well as a major employer and supplier to key industries. The SME sector comprises 95% of the enterprise population, 42% of the workforce and accounts for 40% of the annual gross domestic product in Dubai.
“I am happy to note that the Dubai SME 100 seeks to rank top SMEs based on a set of financial and non-financial dimensions. It will serve as an invaluable, holistic tool to identify the capability development gaps of SMEs and address them effectively.
“We need to further enable the creation and development of quality enterprises that are innovative and globally-oriented. Dubai SME 100 will serve as a foundation for other SME initiatives including the possible development of a SME secondary listing and the building of an equity market dedicated to SMEs,” said H.H. Sheikh Ahmed.
H.H. Sheikh Ahmed also discussed the pending SME draft legislation, noting that it was the clear intention from the outset to achieve consensus among all partners, and by all the Emirates “We have been meeting with economic departments, chambers of commerce, specialist SME foundations, funds and programmes. In addition, we met with the federal departments concerned, including the Central Bank, Ministry of Labour and Ministry of Finance,” he said.
In addition he noted that after receiving input, comments and suggestions from all partners, a final unified definition will be presented by June, at which point it will be submitted to the Cabinet for approval.
Financing
H.H. Sheikh Ahmed outlined the elements which needed continued effort when he spoke of financing for SMEs. “Financing remains the greatest challenge and it needs strategic partnership between governmental departments and the private sector to tackle this. Today we have several major banks and financing institutions eager to play a major role in supporting the SME sector and the Minister of Economy has also been working extensively with our federal and local SME partners on a number of ideas regarding establishing a specialised fund for national SMEs,” he said.
Impressive progress has been made by the leaders of Dubai to seek advice from outside experts and there have been MoUs signed with Germany and South Korea to provide SMEs here with strategic advantages such as increasing national production and re-export by entering into joint ventures. A similar MoU has been prepared for signature with Italy also.
As a final point, H.H Sheikh Ahmed highlighted several other strategic steps to aid SMEs in getting the best start possible. “We have asserted the importance of allocating a percentage of governmental purchasing contracts and services to SMEs. We have also included a whole range of incentives for SMEs that include minimising fees and licenses to waiving fees completely for the first three years for national SMEs,’ he said.
Since 2002 the Government of Dubai, through Dubai SME, has successfully facilitated creation of more than 5,000 start-ups and SMEs. His Excellency Sultan Bin Saeed Al Mansoori, UAE Minister of Economy, reinforced this fact at the launch and emphasised the integral role of SMEs in Dubai.
“Small and medium enterprises are uniquely placed to attract much-needed private equity into our economy. In many developed economies, high performance SMEs are supported by financial markets. SMEs also have the flexibility, variety and adaptability to lead diversification like no other.
“The new businesses have created jobs, added new products and services to the Dubai and UAE markets, some major suppliers to the public and private sectors; and some have even successfully internationalised, flying the UAE flag high,” he said.
Independent entities falling under the official definition of Dubai SMEs and registered in Dubai can apply for the ranking provided they have at least three years audited financial statements.
The non-financial metrics, which sets Dubai SME 100 apart from other ratings, include innovation, international orientation, human capital development and corporate excellence. This will also help SMEs to identify capability gaps and address them.
Applications and submissions can only be done online. Eligible applications will be shortlisted and the judging panel will conduct site visits and a final interview with the CEO before announcing the ranking in October 2011. Top achievers overall and in specific categories will be honoured at a special ceremony.
Dubai SME is mobilising support from the government and private sectors, including banks and other financial institutions to optimise participation in the ranking. More than 830 eligible SMES have already been nominated by banks and other stakeholders.
“The development roadmap for SMEs is taking concrete shape with the official SME definition and now the launch of the Dubai SME 100. The ranking is a milestone for Dubai and will enable us to identify and address gaps in our SME development. It will bring tangible benefits to the economy of Dubai and the UAE,” said Sami Al Qamzi, Director-General of the Department of Economic Development in Dubai.
His Excellency Abdul Basit Al Janahi, CEO of Dubai SME termed the rankings as a logical evolution in Dubai SME’s efforts over the last eight years to serve as a catalyst for developing entrepreneurship and SMEs.
“Our efforts will now gain further traction with Dubai SME 100 and encourage us to launch new and effective programmes. The 100 SMEs in the roll of honour will be able to gain recognition, increase brand equity, attract investors and earn considerable goodwill and otherindirect benefits,” Al Janahi added.
SME Dubai SME 100
– Will rank SMEs based on performance across a set of financial and non-financial parameters.
– Independent entities falling under the official definition of Dubai SMEs and registered in Dubai can apply for the ranking provided they have at least three years audited financial statements.
– Applications and submissions can only be done online. Eligible applications will be shortlisted and the judging panel will conduct site visits and a final interview with the CEO before announcing the ranking in October 2011.
– Top achievers overall and in specific categories will be honoured at a special ceremony.
