UAE government has placed SMEs at the forefront of the country’s long-term economic strategie
A view of the Dubai skyline. SMEs represent about 94 per cent of all businesses in the UAE. — File photo
The UAE’s small and medium-sized enterprises (SMEs) sector is poised for substantial expansion, with projections estimating nearly one million businesses by 2030.
As these enterprises navigate a competitive and dynamic environment, mergers and acquisitions (M&A) have become essential strategies for sustainable growth. To maximise these opportunities, SMEs need tailored tools and expert guidance to achieve their growth ambitions and align with the UAE’s broader economic vision, experts say.
SMEs represent about 94 per cent of all businesses in the UAE, contributing approximately 64 per cent of the non-oil GDP and fostering innovation across a diverse range of industries. However, despite their critical role, SMEs often face significant obstacles in the field of M&A, such as disproportionately high costs, fragmented services, and limited access to specialized expertise. Given these challenges, there is an increasing need for accessible, affordable M&A solutions that support SMEs in their pursuit of growth, expansion, or strategic exit, says Akshay Dosaj, Co-Founder and CEO, Bidzi.
Bidzi is an online platform that provides a comprehensive M&A ecosystem under one trusted point of contact, facilitating a smooth and value-driven journey for sellers and buyers of private businesses.
The UAE government has placed SMEs at the forefront of the country’s long-term economic strategies, emphasizing their role in initiatives like Dubai’s Economic Agenda D33 and Abu Dhabi’s Economic Vision 2030. These frameworks underscore the government’s commitment to creating a global entrepreneurial hub, where SMEs are key players in sectors such as technology, healthcare, and renewable energy.
“For SMEs, M&A provides valuable pathways for rapidly scaling operations, acquiring complementary businesses, or planning strategic exits. However, the traditional M&A process is often perceived as complex, involving intricate legal, financial, and operational challenges. As SMEs aim to capitalize on favorable market conditions, they require solutions that make M&A accessible, efficient, and cost-effective,” says Asif Rashid, Co-Founder and Chief Operating Officer, Bidzi.
The UAE’s M&A landscape is thriving, with regional activity reaching $86 billion in 2023, a 4 per cent increase from the previous year. This growth is fuelled by rising investor interest, an influx of high-net-worth individuals (HNWIs) into the UAE, government-supported diversification initiatives, and favorable market dynamics. “For SMEs, this environment presents unique opportunities to engage in strategic transactions, either by acquiring new capabilities or expanding into new markets. With the UAE becoming a hub for investors and HNWIs, the demand for innovative, scalable SMEs has surged. M&A can serve as a powerful tool for SMEs looking to attract investment, acquire synergies, or merge with businesses that enhance their competitive edge,” Dosaj says.
Asif Rashid and Akshay Dosaj (right).— Supplied photo
To take full advantage of these market trends, SMEs need access to efficient, transparent, and secure M&A services. “The traditional model, which often requires substantial upfront investment, coordinating with multiple stakeholders and lengthy processes, does not align with the fast-paced requirements of modern SMEs. Instead, agile, tech-enabled platforms are emerging as the preferred option for businesses seeking fast, simple and affordable, seamless M&A solutions,” Rashid says.
Digital platforms, such as Bidzi, are transforming the M&A landscape in the UAE, aligning with national economic goals by simplifying transactions and offering comprehensive resources. These platforms empower SMEs to navigate complex transactions confidently and support the UAE’s vision for an entrepreneurial ecosystem that thrives on innovation and efficiency. “As the SME sector grows rapidly toward 2030, streamlined M&A solutions will be instrumental in enabling this growth,” Dosaj says.
As UAE-based SMEs look ahead, they stand on the threshold of a digitally-driven future where M&A will play a vital role in their evolution. The adoption of digital strategies in M&A will enable innovative, cost-effective transactions that contribute to the UAE’s economic diversification and its leadership in global entrepreneurship, Rashid says.
“With the right support, SMEs can manage complex transactions, reduce costs, and enhance their value, positioning themselves as essential contributors to the UAE’s digital and economic transformation. In this context, platforms like Bidzi are not just supporting SMEs but also helping build the foundation for a digitally empowered, globally competitive future,” he adds.
Somshankar Bandyopadhyay is a News Editor with close to three decades of experience. Currently, he manages the business section, ensuring that the top economic and business news of the day reaches its readers.