UAE. Today, banks are ready to finance individual companies that invest in building the essentials of business such as reputation, track records, client base, and financials, and offer a unique selling proposition to the market place, according to Vikram Venkataraman, Dubai-based banker and financial expert.
He added: “Companies find it challenging to mitigate risks perceived by banks. However, the financial sector is ready to work with these companies provided they demonstrate strong business fundamentals. Nonetheless, banks are still wary about segments such as technology, which has witnessed the entry of a large numbers of players who have ultimately faced bankruptcy and getting out of the market. ‘Accommodation’ transactions also plague the industry, particularly the mobile phone business, which involves companies generating transactions with no underlying exchange of goods for the purpose of raising short-term bank financing.”
Venkataraman’s comments came at the Dubai Internet City Excellence Series on ‘Raising Bank Finance for IT and Service Companies’. The session invited business partners of TECOM Investments entities to gain insights from industry experts and understand the impact of best practices and cutting-edge methodologies on the corporate bottom-line.
Majed Al Suwaidi, Director at Dubai Internet City and Dubai Outsource, said: “With a majority of the businesses focusing on the SME sector, organisations need to scale their operations and maintain regular cash flow. As a cluster, we have always supported the segment by providing them with rebates, specialised offerings and a conducive environment to conduct business.
“Such backing helps our business partners innovate, follow industry best practices and become part of a larger ecosystem. SMEs must be capable of creating a solution or service that provides ROI even while generating long-term benefits to the business.”
Vikram Venkataraman serves as Director at Salvus Advisors in Dubai. A career banker holding over 25 years of experience in India and the Middle East, Venkataraman has enjoyed a prolific career with MNCs and local banks such as HSBC, ABN Amro, Dubai Bank and Mashreq Bank.
The Excellence Series hosts monthly sessions that feature distinguished speakers and tackle key topics relating to business, best practices, case studies, personal growth and more.
At the forefront of the region's ICT industry, Dubai Internet City remains committed to supporting emerging technology trends in the region and continues to play an instrumental role in developing the industry while contributing to Dubai's drive for creating a knowledge-based economy.
About Dubai Internet City
Dubai Internet City (DIC), a member of TECOM Investments, was established in 2000. It is currently regarded the Middle East's largest information and communications technology (ICT) cluster. Built as a strategic base for companies targeting emerging markets in several neighbouring regions, DIC’s core focus area extends from the Middle East to the Indian Subcontinent, and from Africa to the Commonwealth of Independent States (CIS), covering nearly three billion people with a GDP of over US$10 trillion. As a knowledge-oriented business model, DIC has created a dynamic international community of IT companies hosting business partners that include most of the Fortune 500 brands, as well as a number of small and medium enterprises and ventures. In 2009, 135 new companies joined the DIC cluster.
For more information, please visit: www.dubaiinternetcity.com