The UAE SME continues to build the momentum of the vulnerability shown in recent years, according to the Rakbank smels index.
Based on views from over 1,200 UAE-based SMES, the trust-based index measures business sentiments for small and medium businesses.
Measured against a basic score of 50 The most recent survey reveals a tally of 57, suggesting a strong and optimistic feeling of a dynamic environmental environment.
UAE Business Optimism
Despite a marginal drop in total index marks by four points from 61 to 207 of the 207 known observations in reporting two years.
While challenges continue, including increasing operations costs, corporate tax, and high cost of borrowing, the overall care of the signs of care of business fields.
Raheel Ahmed, Group CEO SA RakankSays: “This is a Mablieestone month for Business Banking Group in Rakbank business, strengthen our commitment to Dynamic Smed in UAE.
“In a further boost to the SME ecosystem, Rakbank and Emirates Development Bank announced a strategic aed1bn ($ 272m) 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 businesses are the back of each other’s economic, and in UAE, has a role of driving role.”
The report shows many trends that form the SME sector of 2025.
Consumer and retail services remain the highest sector conducting, driven by a continuous increase in consumer spending and successful adoption of new business channels.
The report also highlights how SMEs across the industry are primarily preceding product changes and market development as principal strategies to grow a competitive scene.
While consumer andertail smester achieves a sector sector of 60, the construction and service and professional services and professional services remain great costs and professional services and professional services remain better which costs and professional services and professional services cause increases in costs and increases in increasing costs and increases in service increase.
Takeaways keys from the survey include:
- General trust remained above baseline: While the index marks reduced less than 57 from 61 to 2024, it still signs positive feelings on the board
- Income growth continues: More than 3 of 5 SME reported an increase in annual income in the last two years of financial
- Optimism for small companies: SMEs with income up to AED30M ($ 8.2m) is posted highest trust score in 58, while larger SMEs (AED30M-100.2m-27.2m) dipped in 55
- The increase in costs gives challenges: More than two-thirds of SME experiencing higher operating costs, while 39 percent declare debt obligations, from last year
- Digital adoption is on the rise: 22 percent of SME now sell their products or services online, and 45 percent using digital banking channels monthly
- Keeping the attention to the attention: 55 percent of SME are in or planning to start a continuity of maintenance, with 1 of 3 referring to it as a brief purpose of business
While UAE SME remains optimistic, they also navigate obstacles such as increasing business costs, increasing demand for tax credit indicates in 2024.
To resolve these issues, many SMEs invest in ambitious technology, operation efficiples, and maintenance methods addressed to long growth.
The report further emphasizes the paper of financial partners in this equation, with SMEs mentioned the aligned solutions to the solution revision.
