The partnership is designed to enable SMEs to realise their growth potential by leveraging Mastercard's technologies and resources. Within the collaboration framework, qualified businesses will be offered SME cards, with Mastercard and ADGM working alongside local banking partners for the issuance of these cards. These SME cards are intended to provide a secure and streamlined method for managing business expenses.
In addition to the card offerings, small businesses will have the opportunity to participate in Mastercard's SME business education programme. Furthermore, eligible businesses may receive support through Start Path, which is Mastercard's global startup engagement programme, providing later-stage fintech startups access to the company's fintech portfolio and resources for rapid growth.
In the company press release, officials from ADGM expressed the institution's commitment to fostering a robust SME ecosystem in the UAE, stating that the partnership with Mastercard will offer SMEs a comprehensive value proposition to address their various needs, allowing business owners to focus on developing their offerings and pursuing new opportunities.
Representatives from Mastercard highlighted the company's dedication to driving financial inclusion by pledging to bring 50 million micro, small, and medium enterprises worldwide into the digital economy by 2025. They also talked about the importance of connecting small business owners to the right tools and training, facilitating secure payment transactions, access to capital, and digitalisation.
Despite the ongoing shift to a digital economy in the UAE and increased adoption of digital payments by SMEs, Mastercard's research indicates that some SMEs are deterred from using business payment solutions. Reasons cited include high fees, usability challenges, and ineligibility for mainstream business banking services due to size constraints. Mastercard positions itself as a provider of specific solutions addressing these challenges, aiming to position SMEs for diversification and expansion.
The company press release cites government data and further details the important role of SMEs in driving economic diversification and digital transformation in the UAE, contributing 63.5% to the nation's non-oil GDP. Furthermore, the same source reveals that the number of SMEs in the country is projected to reach 1 million by 2030.
Every day we send out a free e-mail with the most important headlines of the last 24 hours.
Subscribe now