// INDUSTRY INSIGHT //
SHAPING SMARTER SMES FOR THE UAE’ S NEXT ERA OF GROWTH
With new regulatory and technological changes, small businesses are facing a range of pressures, from digital compliances to tech automation gaps. In fact, 76 % of UAE SMEs are reporting that Digital Transformation is now essential. Vikas Panchal, General Manager – Tally Solutions MENA, explores how SMEs can adapt to an evolving operational landscape.
mall and medium enterprises
S are the cornerstone of the UAE’ s non-oil diversification journey, contributing nearly 63 % of the country’ s non-oil GDP. As the UAE advances towards its 2030 goal of becoming one of the world’ s most competitive, digitally enabled economies, SMEs are expected to drive much of this progress. However, fulfilling this potential depends on how well they can adapt to an evolving operational landscape.
Over the past year, we’ ve seen the environment for SMEs in the UAE and broader GCC change remarkably. Compliance expectations have intensified, customer expectations have become more sophisticated and access to credit is increasingly tied to how digitally mature a business’ financial systems are. These shifts are collectively defining the rules of what it takes to compete and grow.
Not long ago, Digital Transformation was often viewed by smaller businesses as a long-term goal, perhaps even a luxury that could be staged over several years. Today, it is unequivocally a core operational requirement. According to recent industry data, 76 % of UAE SMEs now see Digital Transformation as essential to their long-term viability, a sharp rise driven by new tax frameworks, supply chain volatility and the UAE’ s push towards a fully digitised economy.
The introduction of corporate tax and the anticipated roll-out of more advanced e-invoicing and digital reporting systems mean compliance is no longer something that can be managed reactively. Meanwhile, banks and private investors are raising the bar on financial transparency. It’ s becoming common practice for lenders
// in the UAE to scrutinise not just top-line revenues but the depth and accuracy of digital records before extending credit. Businesses operating on outdated or manual systems risk falling behind simply because they cannot provide the audit trails and real-time financial clarity now expected.
Beyond compliance, operational strength today is closely tied to how quickly a business can respond to market shifts. The last few years have shown just how critical cash flow visibility, efficient procurement and smart inventory management are. In many cases, businesses that relied heavily on manual processes struggled with delayed reconciliations and slow decision cycles, which in turn impacted their ability to seize new opportunities.
Through our work with thousands of SMEs across the GCC, certain patterns consistently emerge. The businesses showing greater success are those that have embraced
COMPLIANCE EXPECTATIONS HAVE INTENSIFIED, CUSTOMER EXPECTATIONS HAVE BECOME MORE SOPHISTICATED AND ACCESS TO CREDIT IS INCREASINGLY TIED TO HOW DIGITALLY MATURE A BUSINESS’ FINANCIAL SYSTEMS ARE.
Intelligent SME. tech
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