Financial
Are UAE’s SMEs Confident To Navigate These Challenges And Embrace Opportunities?
Among the headline findings of the report is that the Small & Medium Enterprise (SME) sector in the United Arab Emirates has successfully moved from a stage of resilience to prosperity after the Covid-19 pandemic, with two in three SMEs expressing a positive view of the future business environment in the country. The report found an overall confidence index score of 61 among UAE SMEs – a number based on RFI Global’s analysis of macroeconomic indicators in the UAE, as well as survey responses from over 1,000 SMEs in the country collected between November-December 2023, all of which contributed to the final Index.
IMPORTANT FINDINGS
The report refers to a strong economic forecast for the UAE, with non-oil GDP expected to grow by over 4% in 2024, and overall GDP projected to grow by 5.70% this year. The RAKBANK SME Confidence Index also highlight steady recovery in factors such as hotel occupancy rates close to pre-pandemic levels, which signals a rebound in the tourism sector that is contributing to the general positive outlook among SMEs about their future revenue prospects and the business landscape in the next 12 months. However, the report also talks about the challenges faced by SMEs, including rising labour, operational and other business costs; the impending introduction of corporate tax; and the cost of capital/credit. To navigate these challenges, SMEs need continued support and attention from financial institutions, in addition to the initiatives we are already seeing from government entities, particularly the UAE.

“Small and Medium Enterprises are the backbone of every healthy economy, and this is especially true in the UAE, where SMEs make up 94% of companies and contribute over 50% to the country’s GDP.” – Raheel Ahmed, Chief Executive Officer, RAKBANK
Drawing from a wealth of macroeconomic data and business sentiment analysis, the report suggests that the issuance of new business licenses in Dubai also reflects a strong business environment. Despite challenges posed by fluctuations in Brent oil futures, the overall macroeconomic indicators suggest fertile ground for SME growth and development. While SMEs are proactively embracing innovation and expansion, showing a strong trend towards launching new products/services and bullishness towards customer demand and pricing of products/services, they also displayed one common thread – the critical role of banking support. The need for tailored financial solutions and advisory services is evident in the SME sector. In fact, one of the report’s standout findings is the high level of satisfaction with banking support among almost all the SME sectors.

“RAKBANK has a rich legacy of supporting SMEs, and the launch of our Index in partnership with RFI Global builds upon this legacy, as the UAE’s first SME-specific confidence survey.” – Dhiraj Kunwar, Managing Director, Business Banking, RAKBANK
The RAKBANK SME Confidence Index also offers an in-depth analysis of business sentiment across various industries, with a special focus on Construction & Manufacturing, Transport, Trading, Public Services, Professional Services, and Consumer & Retail Services, with all the sectors again demonstrating strong confidence
The report refers a strong economic forecast for the UAE, with non-oil GDP expected to grow by over 4% in 2024, and overall GDP projected to grow by 5.70% this year.
Financial
MidChains and Standard Chartered establish strategic banking partnership
MidChains FZE, a digital asset platform licensed by the Virtual Assets Regulatory Authority (VARA) to provide broker-dealer services to retail, institutional and qualified investors, today announced a strategic banking partnership with Standard Chartered.
Under the partnership, Standard Chartered will support MidChains with a range of banking services, including fiat settlement capabilities, segregated client money accounts, and correspondent banking. These services will power MidChains’ day-to-day operations and enable efficient settlement.

Rola Abu Manneh, Chief Executive Officer, UAE, Middle East and Pakistan, Standard Chartered, said: “The UAE has established itself as one of the world’s leading regulatory environments for digital assets and a global centre for financial activity. That creates a strong setting for regulated digital asset firms and established financial institutions to work together. Our partnership with MidChains puts that opportunity into practice, with Standard Chartered providing the banking services that support its institutional activity, including fiat settlement, segregated client money accounts and correspondent banking.”
Basil Al Askari, Chief Executive Officer, MidChains, added: “Institutional capital moves continuously between traditional and digital markets, and the infrastructure supporting that activity must keep pace. For institutional investors, digital asset services need to connect with the banking system that supports their wider activity. Our partnership with Standard Chartered brings that connection to MidChains’ institutional services, supporting clients as capital moves between traditional and digital markets.”
By bringing a VARA-licensed digital asset platform together with an established international bank, the partnership connects institutional digital asset activity with the banking infrastructure behind fiat settlement. It is a practical example of how the UAE’s regulated financial ecosystem can link innovation with established banking capabilities to support international business.
Financial
Ukrainian Business Council elects new Board to advance Ukraine–UAE trade and investment
The Ukrainian Business Council in the UAE (UBC) elected a new Board at its General Assembly at Dubai Chamber, where members also approved a 2026–2028 strategy to strengthen trade and investment between the two countries.
Over the next three years, the Council plans to extend its trade delegation programme to new markets, deepen ties with international business councils and launch structured investment dialogues to connect UAE investors with opportunities in Ukraine. The UAE–Ukraine Comprehensive Economic Partnership Agreement (CEPA), Ukraine’s first agreement of its kind with a Gulf state, came into force in July 2026 and removes or reduces customs duties on most goods traded between the two countries.
“Ukrainian companies are achieving real results in the UAE, and we see significant untapped potential for Emirati business and investment in Ukraine. Our role is to build on this momentum: to connect the right partners, support companies at every stage of their growth and help investment flow with confidence in both directions.” commented Olena Shyrokova, President, Ukrainian Business Council in the UAE.
In 2025 and 2026, UBC led business delegations to Vienna, Qatar, Ras Al Khaimah, Fujairah, Oman and the Seychelles. It also ran webinars on UAE market entry for Ukrainian companies and business associations and supported the Ukrainian IT delegation at GITEX. Since its founding in 2016, the Council has established a dialogue with the Federation of UAE Chambers and chambers of commerce across the Emirates.
Under the new strategy, UBC will work with international business councils to give Ukrainian companies access to wider business networks in the Emirates and use the UAE as a base for trade missions to the Gulf, Asia and Africa. The Council will help Ukrainian companies in the UAE with registration, investment and expansion. It also plans to help Ukrainian investors find opportunities in the Emirates, attract Emirati investment to support Ukraine’s recovery and develop arbitration and investor protection mechanisms to build confidence in cross-border agreements.
The Council sees the strongest potential in sectors where Ukrainian strengths meet Emirati priorities: agri-food and food security, IT and digital services, renewable energy, logistics and port infrastructure, and post-war reconstruction. These are also the areas both governments have highlighted for future cooperation.
UBC works closely with the Embassy of Ukraine in the UAE and with H.E. Dr Oleksandr Balanutsa, Ambassador Extraordinary and Plenipotentiary of Ukraine to the UAE. The Council took part in the Cities Unite: Cultural and Business Exchange between the UAE and Ukraine dialogue at Expo City Dubai, initiated by H.E. Reem bint Ebrahim Al Hashimy, UAE Minister of State for International Cooperation, and the Embassy of Ukraine.
The Council will continue to support Ukrainian businesses and the wider community, helping companies expand into the UAE and encouraging UAE investment in Ukraine. Businesses, investors and potential partners interested in working with the Council can get in touch by reaching out to info@ukrainianbc.org.
Financial
UAE primed to convert FDI inflows into economic velocity, says new report
The UAE has built one of the world’s most successful models for attracting foreign direct investment (FDI) and is now positioned to convert that capital into lasting innovation and skill development, according to a white paper from White Paper Media Consulting (WPM), a UAE-based strategic research house that is shaping business and policy conversations in the region using credible datasets and analytical tools.
Beyond the Numbers: The Transformative Intangible Impact of FDI argues that the real returns on FDI now lie in the intangible value it embeds within host economies, with the UAE a defining case study. The paper contends that the next phase will go beyond investment volumes, number of projects, and job creation and be measured also in patents generated, skills transferred, data ecosystems built, and clean technologies commercialized, among other things.
Official data shows that the UAE attracted more than $48.3 billion in FDI inflows in 2025, capturing 3.1% of global flows. Greenfield FDI reflected both volume and capital depth, with 1,562 projects announced for a combined $34.1 billion in capex, or 1.8% of the global total.
The country’s ability to attract investment reflects its competitiveness as a hub for operational efficiency, supply chain integration, and regional headquarters functions. The UAE has deliberately repositioned its FDI strategy toward knowledge-intensive and future-oriented sectors, recognizing that long-term competitiveness is increasingly driven by innovation, digital capabilities, and human capital. This approach aligns closely with the OECD FDI Qualities framework, with tangible examples across each dimension: including the innovation and competitiveness, digitalization and technology adoption, sustainability and clean energy investments for climate targets, and human capital and local expertise.
Drawing on the OECD framework and benchmarks from Ireland, Singapore, Israel, Costa Rica, and Malaysia, the report documents how leading economies have shifted focus from the volume of capital they attract to the long-term value it creates. In the context of UAE, this is visible in the shift in the country’s policies across phases that begin with the Foundation Phase from 1985 to 2005 of Market Liberalization and Infrastructure Creation, culminating in the current positioning as Global Capital and Technology Hub.
The shift to value in the UAE has made a huge difference to the job-creation intensity of FDI. Approximately 2,816 jobs were created in the UAE for every billion dollars received in greenfield FDI in the five years from 2019 to 2023, compared to 2,265 in the previous five years. This is higher than the OECD average of 2,318 and 1,880 respectively.
The paper identifies seven ongoing policy shifts that deepen the qualitative impact of FDI in the UAE, including extending spillovers from free zones into the mainland economy, prioritizing R&D-intensive investment, embedding skills transfer requirements in major projects, and positioning the country as a global leader in IP creation and data governance.
Yazad Darasha, co-founder and director, WPM, said: “As trusted partners of public and private sector clients, we have tracked the UAE’s investment story for years, and the pattern is unmistakable. The country has positioned itself at the front of the race for capital. What we set out to map in this paper is the harder, more valuable contest: converting investment into skills, technology, and economic velocity. It reflects what we do at White Paper Media, turning complex evidence into decisions leaders can act on.”
Dr. Joachim Arnold, CEO of OCO Global, which advises governments and businesses on attracting FDI, building competitiveness, and strengthening economic resilience, and contributed to the study, said: “The UAE’s infrastructure, free zones, and business-friendly environment helped attract companies and drive growth. The National Investment Strategy 2031 signals a more deliberate focus on investment that raises productivity and embeds benefits into the wider economy. The question is no longer only how to attract capital, but how investment creates lasting value, strengthens existing companies, and helps domestic businesses upgrade their capabilities.”
The paper highlights live examples of this transition already underway, among them the Space42 and ICEYE joint venture building satellites on UAE soil, Microsoft’s $15.2 billion investment plan with a commitment to skill one million people, and the UAE’s $30 billion pledge to the Alterra climate fund.
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