SME sector contributing to GDP with up to 99% in MENAStaff Writer | July 18, 2016
The MENA industry in Mena is becoming an increasingly important contributor to GDP, with the SMEs in Egypt, Lebanon and UAE accounting for 80 percent, 99 percent and 60 percent respectively.
MENA businesses According to Al Masah Capital Management:
Al Masah’s report mentioned that the Mena region is currently witnessing a grassroots revolution in building a strong SME structure. Developing the region’s SMEs has so far moved in a positive direction with every GCC country establishing specialized bodies and developing regulations and programs to support and nourish them.
Given that SMEs represent over 90 percent of the total registered companies in most of the Mena countries, their contribution to overall GDP remains substantially lower, with exception of a few like the UAE, Egypt and Lebanon.
Globally, the weight of SMEs has been increasing, with larger firms downsizing and outsourcing more functions, suggesting robust growth, said the report.
Estimates suggest that 90 percent of the world’s businesses are SMEs and it contributes to more than 50 percent of employment worldwide.
For developing economies, SMEs contribute about 50 percent of gross value add (GVA) and 60 percent of total private sector employment.
According to the World Bank Group study, there are 420-510 million micro small and medium-size enterprises (MSMEs) worldwide of which 365-445 million MSMEs are domiciled in the emerging markets. ■