Visa Unveils SME Megatrends in the UAE

The study uncovers the significant trends influencing the UAE SME market and suggests how banks can customize their business solutions to meet the financial requirements of SMEs effectively

Visa’s SME Megatrends Report examines the evolving landscape of small and medium-sized enterprises (SMEs) in the UAE. As SMEs undergo significant changes, particularly in digital and financial arenas, the report emphasizes how underwriters can capitalize on enterprise needs and challenges to unlock new revenue opportunities, gain competitive advantages, and enhance SME growth and scalability.

Regulatory policies, funding, and digital transformation initiatives are transforming the local business environment, creating new prospects for UAE businesses. In this dynamic setting, SMEs are rapidly leveraging digital potential by expanding online presence, adopting contactless and digital payments, and integrating digital tools to optimize operations.

The accelerated digitalization of medium-sized businesses in the region presents central banks with lucrative income opportunities. Facilitating access to essential financial products and services can expand customer bases, increase transaction volumes, and improve revenue prospects. Collaborating with Visa enables underwriting banks to offer tailored financial products that meet SMEs’ specific needs, fostering inclusive economic growth.

Salima Gutieva, Vice President and Country Manager for the UAE at Visa, remarked, “At Visa, empowering SMEs means more than facilitating transactions; it means enabling transformation. SMEs are vital to global economies, driving growth, innovation, and employment. Amid rapid change, it’s crucial for underwriters to understand SME needs clearly and develop targeted solutions that advance the sector.”

“We believe the SME Megatrends report will assist underwriters in better aligning their offerings with SME requirements in the market. By identifying opportunities for issuers to deliver essential financial products and services to SMEs, Visa aims to promote economic growth collectively. These efforts not only support SME development but also contribute to new avenues of prosperity, delivering significant benefits to the economy overall.”

Key SME Megatrends in the UAE Include:

1. Demand for streamlined banking experiences: While UAE banks have improved SME account opening processes, challenges and costs remain.
2. Need for easier credit access: SMEs face hurdles in obtaining financing due to short credit histories, collateral requirements, interest rates, and administrative complexities. Government initiatives aligned with the UAE’s 2030 vision aim to support SMEs through regulatory reforms and development funds.
3. Integration with social media: SMEs are increasingly leveraging social media and e-commerce platforms for marketing and digital expansion.
4. Rise of contactless payments: UAE SMEs are investing in contactless payments to meet customer expectations, with over 90% penetration in in-store transactions.
5. Shift from cheques to digital payments: Digital payment options like Tap to Phone and Visa Direct are gaining traction among UAE SMEs for faster, cost-effective transactions.
6. Investment in digitalization tools: SMBs are adopting digital invoicing, expense management platforms, and accounting software to streamline financial processes.
7. Focus on employee benefits: UAE businesses are enhancing employee benefits to attract and retain talent in a competitive market.

Visa acknowledges SMEs as crucial drivers of economic growth and is committed to their integration into the digital economy. Through services like Visa Business cards, rewards programs, payment management tools, and digital payment solutions, Visa supports SMBs globally and in the UAE. Visa’s initiatives include empowering women entrepreneurs through She’s Next and fostering fintech innovation via the Visa Everywhere Initiative.