The newly launched Export Assistance Program (EAP) rolled out by EDC, an arm of the Dubai’s Department of Economic Development, will benefit SMEs that are members of EDC and have stable operations.

“The program was developed to help privately owned companies in entering other countries to market their products and services. This financial assistance scheme intends to help aspiring and current exporters to undertake export promotion activities to increase opportunities outside the UAE,” said Saed Al-Awadi, Chief Executive Officer, EDC.

“Under this scheme, a qualified entity can receive up to AED100,000 ($27,225) in grant payments during a year. This is equal to one third of the actual expenses not exceeding the applicable expense limits,” he said on the sideline of meetings.

General policies and procedures, qualification requirements as well as the application process were reviewed during the meetings. SMEs were also given an overview on the eligible marketing activities and reimbursable expenses within EAP.

Exporters enrolled under the program would also be eligible to participate in trade exhibitions, market research, market and buyer visits, said the EDC.

The move comes as the UAE’s Ministry of Economy is working on clearly defining SMEs as part of streamlining this sector, which is a major contributor to the national economy.

“The Ministry is leading the co-ordination efforts with all partners and stakeholders in the SME sector to arrive at a common definition for the sector in accordance with international best practices,” said Sultan bin Saeed Al-Mansoori, UAE Minister of Economy.

Al Mansoori said the Ministry is keen to provide all support to the UAE nationals in a bid to involve them in the SMEs and encourage them to become part of the sector development plan.

The Ministry recently signed a memorandum of understanding with Tanmia, or the National Human Resource Development and Employment Authority, to provide sufficient training to the national cadres to lead this promising sector.
 
Last month, a global survey of SMEs by HSBC pointed to difficulties faced by the sector in the country in obtaining financing as the single biggest barrier to conducting international business.

According to a World Bank report, access to finance for SMEs is more constrained in the Middle East and North Africa (MENA) than other emerging markets as bank lending to SMEs accounts for only two percent of the total loans.

While UAE banks top the list in the GCC by giving four per cent of total loans to the SMEs, Saudi Arabia, Kuwait and Oman lend only two per cent each to small businesses, the report said.

Bahrain and Qatar lend the least to SMEs, with one percent and 0.5 percent of total loans respectively, said the paper titled “The Status of Bank Lending to SMEs in the Middle East and North Africa Region.”