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As the UAE targets one million SMEs and ten unicorns by 2031, the spotlight is on how financial institutions can fuel this next wave of growth. In this conversation, Rehan Ali, head of Business Banking at NBF, discusses the evolving role of banks in supporting entrepreneurs—why digital tools alone aren’t enough, how relationship banking still anchors trust and judgment, and what’s needed to bridge ambition with sustainable finance in an increasingly competitive SME landscape.
What outcomes is the UAE targeting for entrepreneurship by 2031, and why do they matter?
The UAE has set clear objectives for the next decade: one million SMEs in operation, 10 unicorns, and a top three global ranking for entrepreneurship. These targets are central to the country’s strategy for economic diversification and global competitiveness. They signal a deliberate shift toward a more innovation-led economy and set expectations for policy, finance, and private sector collaboration. For financial institutions, these goals highlight the need for capital to flow to productive segments, for support to be timely and adaptive, and for solutions to address the realities of operating and scaling in a competitive regional hub.
How significant are SMEs today, and where are the pressure points that slow growth?
According to the UAE Ministry of Economy, SMEs account for about 63.5 per cent of the UAE’s non-oil GDP, underscoring their role in job creation, innovation, and resilience. However, constraints remain. Access to appropriately structured finance can be uneven, sector guidance is not always readily available, and market entry can be complex, particularly for first-time exporters or firms in regulated industries. These challenges intensify at key moments, such as expansion or compliance change, when cash flow, risk, and governance must be managed in tighter alignment.
What has digital transformation solved for SMEs, and where are the limits?
Digital onboarding, fintech integrations, and data-driven credit scoring have reduced friction and widened access to basic services. These innovations have improved operational efficiency across the banking system. However, technology does not fully capture the nuances of sector cycles, management quality, or evolving regulatory exposure. As firms scale or pivot, they need judgment that is grounded in real context. The frontier is not more technology for its own sake, but better integration of digital tools with informed decision-making.
Why does relationship banking still matter in a digital-first era?
Relationship banking introduces context to data. Continuous engagement allows bankers to understand a client’s operating cadence, supply chain, seasonality, and risk appetite. That insight improves credit decisions and makes solutions more aligned with long-term goals. It also enables proactive support when conditions change. The result is a shift from transactional product delivery to collaborative problem solving, where financing, treasury, and risk management work in concert with the client’s strategy.
What operating model shifts inside banks best support this agenda?
The most effective models combine scalable digital journeys with access to sector-literate experts when complexity rises. Dedicated SME units, clear escalation paths to specialists, and data environments that surface the right signals at the right time all matter.
Omnichannel access remains relevant because businesses operate both online and on the ground. A branch or cash deposit machine is not a substitute for digital, and digital is not a substitute for trusted advice, as the two must reinforce each other.
How should access to finance evolve to meet ambition without compromising prudence?
Risk sharing and breadth of instruments are key. Guarantee schemes with development banks can unlock lending for viable firms that lack collateral depth. Tailored working capital, corporate cards with disciplined controls, and onboarding that is rigorous yet efficient help align capital with productive use. The goal is not simply faster credit. It is better-matched credit that anticipates cash needs, acknowledges sector seasonality, and supports responsible scaling.
How are banks supporting SMEs beyond finance?
A growing number of platforms now integrate advisory and operational tools, linking financial services with basic legal, HR, and compliance resources.
Some banks sponsor innovation challenges and mentorship networks that facilitate knowledge exchange among founders. These efforts aim to reduce the non-financial frictions that often slow growth, especially for first-time entrepreneurs or firms entering new markets.
What factors will determine whether the UAE reaches its 2031 goals?
Progress will hinge on pairing digital scale with human insight. Technology can broaden access and lower costs, but trusted relationships help businesses navigate uncertainty, adjust to regulation, and invest with confidence.
Success will require products designed around real operating needs, continuity in advisory relationships, and collaborative support structures that enable SMEs to grow responsibly and contribute to the country’s next phase of economic transformation.
