Signs of a deceleration in the UAE’s SME market
Gulf Finance Corporation, a leading provider of finance to SME and micro businesses, yesterday announced the results of their Q3 Gulf Finance SME Sentiment Survey.
“The survey findings indicate the SME sector is experiencing a slow deceleration as the global economic malaise permeates the local economy at a faster rate than anticipated,” said CEO of Gulf Finance David Hunt.
“Although the majority of SMEs still see opportunities for growth, a larger portion of SME respondents report a negative growth outlook and deterioration in their ability to raise finance and collect payments – two telling indicators of tightening liquidity. The uncertain summer months have been replaced by a nervous looking winter,” he added.
The proportion of respondents positive on growth outlook for the coming 3 months is lower at 78 per cent in Q3 compared to 93pc in Q2. Fourteen pc see stagnation in growth levels, which are reported to remain the same (Q2: 6pc), while 7pc are expecting growth to be negative in the coming quarter (Q2: 0pc).
A total of 55pc respondents stated their payment collection ability remains strong (Q2: 72pc), while the number of respondents revealing deterioration in payment collections increased significantly to 15pc (Q2: 2pc).
Looking ahead, overall sentiment on final quarter growth is less positive than in previous quarters with 78pc of survey respondents forecasting an increase in sales (Q2: 91pc).
Reported by : DT News Network
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