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UNLOCKING GROWTH POTENTIAL FOR UAE’ S SMES
SMEs are a crucial part of the UAE’ s economy. One of the main issues which these companies face is access to the right capital. Without the much-needed funding and cash behind them, SMEs can find it difficult to grow. Sabir Shaikh, Chairman at TIIR Investment, explores how private equity has played a pivotal role in transforming mid-sized businesses into market leaders.
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AFTER INITIAL SUCCESS FUELLED BY FOUNDER CAPITAL, FRIENDS AND FAMILY FUNDING OR EARLY- STAGE INVESTORS, MANY UAE SMES ENCOUNTER A GROWTH BOTTLENECK.
MALL- AND MEDIUM-SIZED
S enterprises( SMEs) are more than just contributors to the UAE’ s economy – they are its dynamic core. Representing over 94 % of all registered companies, SMEs account for around 52 % of the non-oil GDP and employ more than 86 % of the private sector workforce. Yet, despite this critical role, many of these businesses remain stuck at a growth impasse – unable to evolve into larger, more competitive enterprises.
The underlying issue is not a lack of ambition or opportunity, but access to the right capital, strategic partnerships and institutional frameworks that enable scale. Companies like TIIR Investment are helping UAE’ s underserved middle-market segment catalyse transformational growth.
The plateau most SMEs struggle to cross
After initial success fuelled by founder capital, friends and family funding or earlystage investors, many UAE SMEs encounter a growth bottleneck. Whether the goal is to scale regionally, invest in technology, upgrade infrastructure or streamline operations, their needs begin to outpace the financial instruments and support systems available to them.
Bank financing remains difficult for SMEs without collateral or predictable cash flows. Meanwhile, venture capital tends to focus on early-stage, high-growth start-ups, leaving more mature, but smaller-scale businesses in a funding void. These middle-market enterprises, typically generating AED10 million to AED200 million in annual revenue, remain rich in potential yet underserved.
Private equity as the strategic growth partner
Globally, private equity( PE) has played a pivotal role in transforming mid-sized businesses into market leaders. In the UAE, its role is increasingly relevant as local SMEs look to:
• Expand into new markets, especially across the GCC and broader MENA region
• Adopt digital tools to boost efficiency and customer reach
• Execute M & A strategies in fragmented sectors
34 Intelligent SME. tech