The Mohammed Bin Rashid Establishment for Small and Medium Enterprises Development has announced the first official definition for Small and Medium Enterprises (SMEs) in Dubai.

The definition will create a platform for a new culture in meeting the requirements of small and medium businesses and further driving their growth, said a statement from the Establishment.

The definition is considered as the first initiative towards arriving at a common language that integrate the perspectives of all stakeholders and sectors that support SMEs. It serves as a reference point and a framework to implement the initiatives to develop SMEs which are a key driver of economic growth.

The definition is used as an initial standard to identify the categories of the small and medium businesses. It provides an authorized tool to asses the performance of the SME sector and its contribution to the overall economy, the statement added.

The new definition is the fundamental standard for attracting small and medium enterprises and measuring the effectiveness of the policies and programs related to the sector.

Commenting on the initiative, Sami Al Qamzi, director general of DED, said: “The new definition marks the beginning of a new phase for the Government of Dubai and the Mohammed Bin Rashid Establishment for SME Development, a part of DED.

'The new definition is a starting point for enhancing the development of the SMEs. We are now in a better position to implement policies and initiatives which will assist in further developing the SME sector in Dubai,' he added.

Abdul Baset Al Janahi, CEO of Mohammed Bin Rashid Establishment for SME Development, said: 'Defining SMEs  is an important step to support the economic development efforts of Dubai. The SME sector plays an important role in the growth of all economies led by new initiatives, creativity and generating new businesses and jobs.'

'The SME sector in Dubai supports many international companies and is also an essential part of the value-add chain for many industries and sectors,' he added.

“The new definition is the starting point for a long journey to develop the SME sector in Dubai. For the banking community, we hope that the definition will provide them with a reference point to help define their SME financing strategy,' Janahi pointed out.

'We need to engage the industry groups and business organisations and develop initiatives for their respective sectors.'

According to Janahi, the Establishment will be rolling out several new initiatives next year. These include the setting up of a Dubai SME council, launching the SME 500 programme, formulating the SME-5 year plan, and conducting the annual SME Development Needs Survey,” he added.-TradeArabia News Service