UAE Small Businesses See Expanding Overseas as Key to Growth
A remarkable 93% of business owners in the UAE are set to expand into new territories as a part of their growth strategy, surpassing the global average of 79%, according to a recent report. The study, Visa's seventh Global Back to Business Study, also found that 83% of consumers in the UAE, compared to 72% globally, are already comfortable with cross-border shopping.
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Small and micro businesses (SMBs) in the UAE are notably keen on prioritizing cross-border sales as they seek to broaden their reach. Furthermore, the report highlights a growing inclination towards cashless transactions, with nearly 75% of surveyed shoppers in the UAE anticipating increased use of digital payments this year.
Dr. Saeeda Jaffar, Visa's SVP and Group Country Manager for GCC, remarked on this shift, stating, "Today's small business owner can be virtually borderless," emphasizing how digital payments are helping SMBs improve efficiency and reach new audiences.
This global study by Visa surveyed both small business owners and consumers across ten markets, including the UAE. It revealed that all UAE small business owners surveyed plan to go cashless eventually, with 42% aiming to make this shift in the next two years. In parallel, 51% of consumers anticipate using digital payments more frequently in the coming year.
Support for local businesses remains strong, with 70% of UAE consumers intending to shop more at local establishments to boost the local economy. Sustainability practices are also a significant factor in purchasing decisions, with 92% of UAE shoppers considering a business's sustainability impact when making purchases.
Furthermore, 96% of UAE consumers are willing to pay extra for products or services that prioritize sustainability, showing a strong commitment to environmentally friendly practices.
To enhance their businesses, UAE business owners identified various strategies, including offering new products or services (44%), increasing marketing investments (42%), expanding their social media presence (41%), and accepting new forms of payment (37%).
Visa Foundation, in 2020, unveiled a $200 million strategic commitment to support the growth of small and micro businesses, particularly those led by women entrepreneurs. This initiative aims to provide financial support, capacity building, and other resources to drive the growth of gender-diverse SMBs.
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