Abu Dhabi, UAE – 30th September 2018:   The Central Bank of the UAE (CBUAE) Governor H.E. Mubarak Rashed Al Mansoori welcomed H.E. Kanji Fujiki, Japan’s Ambassador to the UAE and a delegation of high ranking officials from the Japanese Government and banking sector, for a seminar to learn about the support systems and regulatory measures that make up the foundations for a thriving SME sector in Japan. 

One of the most important areas of the UAE’s national agenda is the support and development of SMEs which have been identified as vital to the UAE’s transition to a knowledge-based economy, increasing the share of private non-energy sectors in employment and growth. In the Japanese domestic economy, SMEs play a considerable role, representing 70 percent of all employment, over 99 percent of all enterprises and 50 percent of value added in the manufacturing sector, rising to 60 percent in non-manufacturing.

To advance the progress of SMEs in the UAE a high level meeting took place that included key stakeholders and an SME Working Group was recently established. This group is working to identify the major challenges facing SMEs in the UAE and formulate measures to address those challenges, based on international experience.

H.E. Mubarak Rashed Al Mansoori, UAE Central Bank Governor said: “SMEs are crucial for ensuring sustainable inclusive growth, innovation and job creation in the UAE. We therefore need to create a supportive regulatory environment and a complementary wider supporting ecosystem that enable SMEs to flourish. Part of this is to draw on the experiences of other leading economies, such as Japan, and adopt the most effective measures and policies for the UAE market.”

H.E. continued: “I would like to thank our Japanese counterparts for their valuable insights during this seminar. This event is part of wider UAE and Japan cooperation on financial services and economic development and we hope to continue our collaborative dialogue in the future.” 

During the seminar, Japan’s Small and Medium Enterprise Agency, Ministry of Economy, Trade and Industry (METI) gave an overview of the SME environment in Japan and presented the country’s approach to establish effective Japan’s Credit Guarantee System, Loan Guarantee Support System, Credit Risk Database (CRD) and Investment Fund Scheme. Representatives from the Sumitomo Mitsui Banking Corporation (SMBC) also gave a detailed presentation on SMBC’s support experience for SMEs in ASEAN and Myanmar, how to organize viable financing structures, secure funding resources and upgrade related laws and regulations.

The UAE-Japan SME Seminar took place at the CBUAE Headquarters in Abu Dhabi and included key representatives from the UAE Central Bank, the Ministry of Economy, Khalifa Fund, Mohammed Bin Rashid Est. for SME Development (DUBAI SME) and others. Representatives from the Embassy of Japan in the UAE, SME Agency, Ministry of Economy, Trade and Industry (METI), Consulate General of Japan in Dubai, Japan External Trade Organization (JETRO) and Sumitomo Mitsui Banking Corporation attended from Japan.