UAE SME Revenue Growth: Survey Findings 2024
UAE SMEs are demonstrating remarkable optimism, even as operational costs climb, according to the latest RAKBANK survey. This critical report reveals that despite headwinds like new tax laws, over 60% of surveyed UAE SMEs reported revenue growth in the last two years. The findings from this significant study highlight the resilience of businesses in the Emirates, with sectors like Consumer and Retail Services leading the charge. Discover how digital adoption and sustainability strategies are shaping the future for the primary_keyword, and how the secondary_keyword landscape is evolving.News Directory 3 provides essential insights. What innovative approaches are these businesses employing to navigate challenges and maintain positive momentum? Discover what’s next for UAE SMEs.
UAE SMEs Show Optimism Amidst Rising Costs, RAKBANK Survey Reveals
Updated June 07, 2025
Small and medium-sized enterprises in the UAE continue to demonstrate resilience, according to RAKBANK’s SME Confidence Index.The index, which gauges business sentiment among over 1,200 UAE SMEs, indicates a generally stable and positive outlook despite economic challenges.
The latest survey scored 57 against a baseline of 50, reflecting sustained optimism.While this represents a slight decrease from 61 in 2023, 68% of SMEs view the future business surroundings favorably, and more than 60% reported revenue growth over the past two years.
Challenges persist,including rising operational costs,the implementation of corporate tax,and high borrowing costs. Tho, SMEs are adapting by investing in technology, efficiency, and sustainability.
Raheel Ahmed, Group CEO of RAKBANK, emphasized the importance of SMEs, stating they “play a central role in driving diversification and sustainable growth” in the UAE.
The Consumer and Retail Services sector remains the top performer, driven by increased consumer spending and the successful integration of new business channels. Product innovation and market expansion are key strategies for growth across various industries.
Smaller firms, with revenue up to AED30 million, showed the highest confidence score at 58, while larger SMEs (AED30m-100m) dipped to 55. Rising costs are a concern, with over two-thirds of SMEs experiencing higher operational expenses. Digital adoption is increasing, with 22% of SMEs selling online and 45% using digital banking monthly.Sustainability is also gaining traction, with 55% of SMEs either on or planning a sustainability journey.
What’s next
Looking ahead, UAE SMEs will likely continue to focus on technology adoption and sustainability initiatives to navigate challenges and maintain growth. Financial institutions are expected to play a crucial role in supporting SMEs through tailored banking solutions.