SMEs to drive economic growth in GCC - Regional market potential pegged at US$920 billion
Source: Brandmark for IUPS , Author: Posted by BI-ME staff
Posted: Sat November 3, 2018 12:39 pm

UAE.  The second India-UAE Partnership Summit (IUPS) today said that the market potential for Small and Medium Enterprises (SMEs) in the GCC is poised to touch US$920 billion in the next five years compared to the current US$360 billion, a growth of 156 per cent, significantly enhancing investment prospects in this sector.
 
A research paper released at the opening session of IUPS, jointly inaugurated by HE Dr. Abdullah Al Nuaimi -Cabinet Member & Minister of Infrastructure Development UAE and the Indian State Ministers Shri Manpreet Singh Badal from Punjab, Shri Satyender Jain from Delhi and Shri Chandra Mohan Patowary from Assam, said the employment potential in the SME sector is expected to touch 22 million from the current 17 million in GCC, while the sector reportedly accounts 120 million jobs in India.

“SMEs present a significant opportunity for India and the UAE to cooperate and add value to the robust economic potential of both the countries, particularly in the private sector. The SME platform will offer a multifaceted and diverse investment opportunity for entrepreneurs from both countries thereby raising the share of the sector’s contribution to the GDP of both the nations,” said Indian Ambassador to the UAE, Mr. Navdeep Singh Suri, at the summit.

The focus sectors of this year’s summit are Education, SMEs and Skill Development & Placement with four Indian states – Assam, Delhi, Punjab and West Bengal – showcasing investment opportunities in these sectors. The focus Emirate of the UAE is Sharjah represented by the investment promotion agency, Invest in Sharjah.
 
IUPS is organized by Business Leaders Forum (BLF), a unit of India Trade & Exhibition Centre m.e. in association with Indian Embassy-Abu Dhabi & Consulate General of India-Dubai and UAE Ministry of Economy as strategic partners.

According to the research paper prepared by the leading accountancy major, Crowe, the advisory partner of the India-UAE Partnership Summit, SME growth prospects in the region is estimated at 156 per cent. Currently, SMEs contribute 22 per cent to the GCC’s GDP with the UAE leading in the rankings with the sector contributing 30 per cent to the country’s overall national output and 60 per cent of the non-oil GDP.

In other countries in the region, the share of SMEs to GDP is estimated at 28 per cent in Bahrain, 22 per cent in Saudi Arabia, 20 per cent in Kuwait and 14 per cent in Oman. In India, SMEs form the backbone of the country’s economy contributing 45 per cent of the manufacturing output and 40 per cent of exports.

“SME is a sunrise sector in India, the UAE and the region throwing open immense opportunities for private sector entrepreneurs to participate, which will further reinforce the robust economic relations between both the countries,: said Mr. Ram Buxani, President of the Business Leaders Forum (BLF), adding that the focus on SMEs at this year’s summit is aimed at nurturing business relationships between SME entrepreneurs in both the countries. 

Speaking at the summit, Mr. Sudesh Aggarwal, Board Member of BLF, Chairman of the IUPS Organising Committee and Chairman of India Trade and Exhibition Centre (ITEC), said mutual cooperation in the sectors of education, skill development and placement of manpower and SMEs will help complement the robust strategic agenda of Indo-UAE relations.

“Economic and investment cooperation between India and UAE has been on an upswing and in the last few years the level of engagement between both the countries has risen to encompass diverse business sectors. Raising the level of mutual investment and innovation cooperation in sectors such as education and SMEs will further accelerate bilateral relations,” Mr. Aggarwal added.

India, being the fastest growing economy in the world at over 8 per cent as of the first quarter of 2018 has already received investment intentions of up to US$52.14 billion from Gulf-based investors this year.  India is the largest trading partner of the UAE with trade at US$53 billion which is poised to grow to US$100 billion by 2020.

“This year’s the summit’s aim is to present a diverse basket of potential investment opportunities in both the countries as well as the region. SMEs and education sectors are two sectors where there is tremendous potential to join hands. For instance, in the education sector in Dubai alone, Indian school curriculum has a 31 per cent share with the potential increasing every year to cater to the Diaspora,” said Sripriya Kumaria, Secretary General of BLF.

About India-UAE Partnership Summit (IUPS)
India-UAE Partnership Summit (IUPS) is an official business summit hosted by Business Leaders Forum (BLF) in association with Indian Embassy-Abu Dhabi and Consulate General of India-Dubai.  The strategic partner of the event is the UAE Ministry of Economy.

The two-day event takes place at the Atlantis the Palm, Dubai. The Summit is aimed at creating synergies and frameworks for strengthening and streamlining the flow of two-way investment that will help key economic sectors of both the countries – by identifying the investment areas, projects, funding needs and helping raise investment to fund vital infrastructure projects.

At the Summit, there shall be presentations by four Indian States, NSDC, Skill councils & overall investment scenario in India and UAE. Check the program for details or website www.iups.ae The Summit will be attended by Ministers, Officials, Chambers, Industrialists, Businessmen, Financial Institutions, Diplomats, and Wealth Funds.

 

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