Mastercard SME Confidence Index: Optimism at a high as businesses in the UAE embrace digital growth and expansion

Khaleej Times

27-02-2025

Small and medium enterprises (SMEs) in the UAE are entering 2025 with strong optimism, fueled by a thriving digital economy, strong government support, and increasing access to financial solutions, according to the third edition of the Mastercard SME Confidence Index.
The findings show that 91 per cent of SMEs in the UAE are optimistic about their business outlook, reflecting the nation's commitment to fostering an enabling environment for entrepreneurs and small businesses to scale and succeed. Additionally, 90 per cent expect to earn similar or more revenue this year compared to last year, an increase from the last survey.
This confidence is driving expansion plans, with seven in ten SMEs seeking credit in 2025, primarily to scale their businesses rather than sustain operations. The study also highlights that digital transformation remains a key priority, with the vast majority of SMEs (83 per cent) focusing on enhancing digital payments, while others are prioritising financial inclusion and sustainability initiatives.
"Small and medium enterprises are the backbone of economies, driving innovation, employment, and resilience. As digital transformation accelerates, SMEs are unlocking new opportunities through digital payments and financial inclusion. Their ability to adapt and grow in a rapidly evolving business landscape reflects the strength of an ecosystem that prioritizes access to finance, digital enablement, and sustainable growth," said Dimitrios Dosis, president — Eastern Europe, Middle East and Africa, Mastercard.
"As the UAE advances its vision for a thriving digital economy, SMEs play a crucial role in driving innovation and growth. Their confidence in the future reflects not only their resilience but also the impact of an ecosystem designed to support their success. At Mastercard, we are committed to empowering SMEs with cutting-edge payment solutions, real-time insights, and strategic partnerships that help them scale sustainably and securely,' said J.K. Khalil, division president, East Arabia, Mastercard.
Digital payments and data insights drive SME growth
The study highlights the pivotal role of digital payments and data-driven decision-making in SME success. In the UAE, 92 per cent of SMEs now accept digital payments, up significantly from previous years.
Meanwhile, nearly all SMEs (97 per cent) recognise the importance of better data, analytics, and insights in strengthening their businesses, signaling a shift toward smarter, tech-enabled operations.
Access to credit as a growth catalyst
With growth at the forefront of SME ambitions, 70 per cent of small businesses in the UAE are actively seeking credit, reflecting their appetite for investment and expansion.
Mastercard's collaboration with financial institutions and fintech partners, such as Geidea, is expanding access to innovative credit solutions. By leveraging digital payment data and insights, SMEs can build stronger financial profiles, improving their ability to secure financing and manage cash flow effectively.
Public and private sector collaboration to accelerate SME success
The study reveals that over 80 per cent of SMEs in the UAE believe that private sector initiatives or partnerships have the greatest potential to positively impact their business.
Mastercard continues to work closely with government and private sector partners to provide SMEs with the tools, training, and financial solutions they need to succeed. In 2024, the company partnered with Abu Dhabi Global Market (ADGM) to offer an SME-focused business education program, equipping entrepreneurs with knowledge on digital payments and financial management.
As SMEs across the UAE embrace 2025 with confidence, the Mastercard SME Confidence Index serves as a critical barometer of their evolving needs, challenges, and aspirations. The company remains committed to translating this optimism into tangible progress by equipping SMEs with the tools, insights, and partnerships needed to scale sustainably.
From enabling seamless digital payments and expanding access to credit, to fostering financial inclusion and upskilling entrepreneurs through strategic collaborations, Mastercard continues to play a pivotal role in shaping a thriving SME ecosystem in an increasingly digital and interconnected economy.