Signs of a deceleration in the UAE’s SME market

Gulf Finance Corporation, a leading provider of finance to SME and micro businesses, yesterday announced the results of their Q3 Gulf Finance SME Sentiment Survey. "The survey findings indicate the SME sector is experiencing a slow deceleration as the global economic malaise perm

Editorial Team Legacy

Published 26 October 2015, 8:00 · Updated 21:26

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Signs of a deceleration in the UAE’s SME market

Gulf Finance Corporation, a leading provider of finance to SME and micro businesses, yesterday announced the results of their Q3 Gulf Finance SME Sentiment Survey.

“The survey findings indicate the SME sector is experiencing a slow deceleration as the global economic malaise permeates the local economy at a faster rate than anticipated,” said CEO of Gulf Finance David Hunt.

“Although the majority of SMEs still see opportunities for growth, a larger portion of SME respondents report a negative growth outlook and deterioration in their ability to raise finance and collect payments – two telling indicators of tightening liquidity. The uncertain summer months have been replaced by a nervous looking winter,” he added.

The proportion of respondents positive on growth outlook for the coming 3 months is lower at 78 per cent in Q3 compared to 93pc in Q2. Fourteen pc see stagnation in growth levels, which are reported to remain the same (Q2: 6pc), while 7pc are expecting growth to be negative in the coming quarter (Q2: 0pc).

A total of 55pc respondents stated their payment collection ability remains strong (Q2: 72pc), while the number of respondents revealing deterioration in payment collections increased significantly to 15pc (Q2: 2pc).

Looking ahead, overall sentiment on final quarter growth is less positive than in previous quarters with 78pc of survey respondents forecasting an increase in sales (Q2: 91pc).

Reported by : DT News Network

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Signs of a deceleration in the UAE’s SME market

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