UAE SMEs Can Become an Economic Engine — If They Scale

By Mina Vucic, Director of Production and Multimedia at BNC Publishing. Published August 6, 2026.

SMEs account for 94% of businesses in the UAE and contribute more than 63% of its non-oil GDP, according to Gregg Pearce, Head of SoHo and SME at du. Those numbers make the sector one of the most important engines of growth in the national economy. Pearce argues the next phase is not about launching more companies; it is about helping today's SMEs scale into globally competitive businesses.

That distinction matters. The UAE's Vision 2031 agenda includes plans to nurture two million SMEs. National initiatives also aim to train thousands of young entrepreneurs and support the creation of new unicorns. Yet none of those goals deliver their full economic value if companies stay small by default. The real upside, Pearce said, lies in scaling SMEs.

Administration is the quiet bottleneck

Pearce described administrative overload as an underestimated barrier for entrepreneurs. It leaves little bandwidth for building the business. A founder should not be stitching together multiple subscriptions and vendor relationships to run day-to-day operations.

Founders want integrated support in a few key areas:

• digital infrastructure and cloud services
• productivity tools and cybersecurity
• mentorship and funding access
• ecosystem connections

du's shift from telecom to platform

du has evolved from a telecom provider into a digital enablement partner. Its SME offerings include bundled connectivity, Microsoft 365, cybersecurity tools, e-commerce support, and company setup platforms. du Launchpad is the company's AI-powered platform for entrepreneurs, and du offers AI-powered security services through a partnership with Microsoft.

The company is also embedded in the wider startup ecosystem. du is the first telecom partner for the Dubai Department of Economy and Tourism's SME in a Box initiative, which combines licensing, banking, connectivity, and compliance for starting a business in Dubai. du also works with Dubai SME, Sheraa, and the DIFC Innovation Hub.

Scaling requires adaptable infrastructure

Pearce said successful scalers put modular, cloud-enabled infrastructure in place early to absorb growth. Founders need to test, adapt, and pivot without being held back by rigid systems. He advises starting AI adoption by automating two or three repetitive tasks. From there, SMEs can use AI for administrative automation, demand forecasting through predictive analytics, and 24/7 AI-powered customer support.

Future-ready businesses, Pearce said, treat AI as infrastructure. Companies that embed AI into core operations now will have a competitive edge in the years ahead.

The ecosystem is already built

The UAE's advantage lies in collaboration among government entities, corporations, investors, accelerators, and entrepreneurs. The DIFC Innovation Hub's Ignyte platform has connected 100,000 startups with more than 5,000 investors and mentors. du supports the ecosystem with connectivity, cloud services, cybersecurity, and access to its customer network.

Pearce said much of the heavy lifting of creating a support system has already been done; founders now need to actively engage with it. He advises joining accelerator programs early, building ecosystem relationships, investing in adaptable technology, and creating scalable infrastructure.

His final piece of advice is to stop thinking of yourself as a small business owner. Thinking and operating as a borderless business changes everything. The tools, partnerships, and decision speed all change when you operate that way. A dream, he said, is only as strong as the infrastructure it sits on.