UAE SME Resilience & Confidence – Latest Update
- The UAE's small and medium-sized enterprises (SMEs) continue to display resilience,according to the 2025 RAKBANK SME Confidence index.
- The RAKBANK survey, conducted with RFI Global, gathered data from over 1,200 UAE-based SMEs between October and december 2024.
- raheel Ahmed, Group Chief executive Officer of RAKBANK, emphasized the bank's commitment to the UAE's SME sector.
UAE SMEs are proving their mettle. Despite economic shifts, the majority of UAE small and medium enterprises remain optimistic, ready to navigate challenges and pursue growth. The latest RAKBANK SME Confidence Index highlights key trends,revealing that 68% of businesses anticipate a positive future. Over 60% have seen revenue growth in the last two years, a strong signal of adaptability within the sector. discover how this growth is fueled by strategic investments. News Directory 3 reports on the key growth strategies, including digital adoption and market expansion, that are driving the UAE SME sector forward. How are factors like operational costs and SME confidence impacting the future? Discover what’s next for these resilient businesses.
UAE SMEs Show Resilience Despite Challenges
Updated June 08,2025
The UAE’s small and medium-sized enterprises (SMEs) continue to display resilience,according to the 2025 RAKBANK SME Confidence index. While the overall index score saw a slight decrease, the sector maintains a generally positive outlook amidst a changing economic landscape. The index, wich serves as a key indicator of SME confidence, registered 57 against a base of 50, a drop from 61 in 2023.
The RAKBANK survey, conducted with RFI Global, gathered data from over 1,200 UAE-based SMEs between October and december 2024. The findings reveal that 68% of SMEs view the future buisness environment favorably, and more than 60% reported revenue growth over the past two years. This indicates strong adaptability among SMEs, even as they face challenges like rising operational costs and the introduction of corporate tax.
raheel Ahmed, Group Chief executive Officer of RAKBANK, emphasized the bank’s commitment to the UAE’s SME sector. He stated that the index offers valuable insights into SME sentiment, growth prospects, and challenges across the nation. Ahmed added that RAKBANK aims to be a trusted partner,providing SMEs with the necessary tools and support to expand their businesses and contribute to the broader economy.
The Consumer & Retail services sector leads in performance, driven by increased consumer spending and prosperous adoption of new business channels. Product innovation and market expansion are key growth strategies for smes across various industries. The survey also highlighted that SMEs with revenue up to AED30 million posted the highest confidence score at 58, while larger SMEs (AED30-100 million) dipped to 55.
While the UAE SME sector demonstrates resilience, businesses are navigating increased operational costs, rising credit demand, and competitive pressures.Digital adoption is on the rise, with 22% of SMEs selling products or services online and 45% using digital banking channels monthly.
To combat these challenges, SMEs are investing in technology, operational efficiencies, and sustainability strategies to ensure long-term growth.
What’s next
Looking ahead, the report suggests a continued focus on entering new markets, investing in talent, and modernizing payment infrastructure. RAKBANK aims to support this journey by providing financial solutions and advisory support to help SMEs grow with confidence.