DMCC, one of the world’s leading free zones for trade and enterprise in Dubai, has signed an agreement with Dubai SME, an agency of Dubai Economy, to develop Sharia-compliant trade finance platform for the small and medium enterprises ( SMEs).
The collaboration sets out to create a web-based trade finance platform for SMEs, where they pledge their assets for lending purposes.
The platform will be Sharia-compliant and operate under the DMCC Authority regulatory framework, remarked Gautam Sashittal, the chief executive of DMCC, after signing the deal with Abdul Baset Al Janahi, the chief executive of Dubai SME.
''This cooperation between DMCC and Dubai SME opens a new avenue for funding and financing SMEs. We are all aware that SMEs have had a challenge securing financing to grow their businesses, this cooperation will be valuable to all SMEs based in Dubai," observed Sashittal.
Al Janahi pointed out that the SME sector in the UAE had evolved remarkably during the past decade chiefly due to support from the government.
Dubai SME, he said, is currently working on an SME 2021 Plan drawing on the emphasis given to innovation and entrepreneurship in the Dubai 2021 Plan.
"The focus of our plan is on encouraging and enabling people who have innovative ideas to turn them into successful business projects that add value to the national economy," explained Janahi.
''Dubai SME also has varied programmes to stimulate growth and adoption of innovative business models among SMEs as well as to enhance productivity in the sector eventually integrating them as key players in a competitive, knowledge-based economy as envisioned by the Dubai Plan 2021," he added.
DMCC said it has over 14,100 companies in its free zone. "Almost 80 per cent of these companies are SMEs. We believe through this cooperation and creating SME funds; we will be able to grow the SME sector for the benefit of all," said Sashittal.