Dubai Chamber seminar discusses SMEs financial challenges
Major Dubai banks and funding organisations join the Trade and Business Development Department-organised event
A seminar raising awareness about the financial challenges and opportunities faced by Small and Medium-sized Enterprise (SMEs) in these financially uncertain times was organized by the Trade and Business Development Department of Dubai Chamber of Commerce & Industry at its premises yesterday (Monday).
The seminar was inaugurated by HE Eng Hamad Buamim, Director General, Dubai Chamber, and was attended by Dr Belaid Rettab, Executive Director, Economic Research and Sustainable Business Development, and businessmen from SMEs belonging to the finance sector and representatives of Noor Islamic Bank, Standard Chartered, Bank of Baroda and Union National Bank.
Said Buamim, “As part of our mission to represent, support and protect the interests of the business community, in this case for members belonging to the SMEs in the financial sector and their support groups, the seminar on financing brings together representatives from the entire industry who will work towards a joint action plan to face the challenges of the global financial crisis and its impact on the SMEs.”
During the seminar, the representatives of banks shared information on the availability of SMEs products and services, the right method of applying for funds and their willingness to assist the applicants in obtaining funds for their projects. They also shared their experiences and case histories of financing SMEs projects.
The seminar, while highlighting the current financial climate, concluded that
access to bank financing for SMEs was still limited. As revealed by a recent
Dubai Chamber research, UAE banks generally rejecting applications were based on the banks’ perception of SMEs lending risk, inadequate documentation, short operational track records, as well as by the absence of verifiable credit histories.
The differing perspectives of risk were identified by both SMEs and financial institutions as key hurdles to mutual trust as the speakers’ discussion focused on communication gaps between SMEs and financial institutions as well as clarifications about the terms of the SMEs products. It was proposed that the Chamber addressed these issues through training on preparation of financial reports tailored to SMEs needs of seeking funds from foreign sources.
Said Dr. Belaid Rettab, “This seminar, designed by the newly-established Trade & Business Development Department, came as part of the overall Dubai Chamber strategy of promoting growth, sustainability and transparency in the business community. The department offers regular informational seminars, business decision-making and credit rating tools, as well as demand-driven advisory services according to the Chamber’s mission.”
