Small and medium-sized enterprises (SMEs) are the lifeblood of the UAE’s economy, comprising over 95% of companies and employing roughly 86% of the private sector workforce. Recognising this, UAE authorities and industry players have intensified efforts to support SMEs’ growth. On the financial front, banks in the UAE have significantly ramped up lending to smaller businesses.
According to the Central Bank of the UAE, by mid-2024, the outstanding loans and facilities extended to SMEs reached AED 81.2 billion (USD 22.1 billion). This accounted for about 9.5% of all commercial and industrial credit in the country. Such figures indicate a concerted push by banks to meet SME financing needs, spurred by government directives and guarantee programmes.
In fact, despite global economic headwinds, UAE banks expanded SME lending by over 13% in the first half of 2024 alone. The UAE’s Minister of Economy has highlighted that around 557,000 SMEs operate in the country and contribute significantly to non-oil GDP, underscoring why enabling these businesses is a national priority.
Policymakers have introduced various initiatives, from dedicated SME investment funds to credit guarantee schemes, to ease access to capital. For instance, the Emirates Development Bank launched an AED 1 billion platform for SMEs in 2023 to spur industrial growth. Additionally, regulatory steps like the SME Market Conduct Regulation were implemented to improve how banks serve small businesses.
This supportive ecosystem, often likened to an “economic backbone” for the UAE, aims to empower entrepreneurs and startups, fuelling innovation and job creation in line with the nation’s broader economic diversification goals. The recent establishment of a federal corporate tax notably spares many small businesses via generous revenue thresholds, reflecting the government’s intent to protect SMEs’ profitability and reinvestment capacity.
Overall, the UAE’s finance sector and government agencies (sometimes dubbed the “economic coalition for SMEs”), which are here playfully referred to as “ECB” for an “Entrepreneurial Central Backbone,” have laid robust groundwork to help local SMEs thrive.
TikTok And Visa Join Forces To Empower Small Businesses
Beyond financial support, digital enablement has become crucial for SME success. In a novel partnership, social media giant TikTok and payment leader Visa have teamed up in the UAE to bolster SMEs’ digital marketing capabilities. Announced in July 2025, this strategic collaboration offers small and medium businesses a suite of incentives to expand their reach on TikTok’s popular short-video platform.
At the core of the programme is an advertising credit scheme: UAE SMEs that spend USD 250 on TikTok ads using a Visa commercial card receive an extra USD 150 in TikTok ad credits. This effectively gives first-time TikTok advertisers a 60% boost in ad budget, lowering the barrier to try TikTok’s powerful marketing engine.
The offer runs from July 1 through September 30, 2025, and is exclusive to new TikTok Ads Manager users. By easing the cost of online ads, the partnership directly addresses one pain point for small businesses, namely the expense of reaching customers digitally.
But the TikTok-Visa initiative goes further with non-monetary support. Eligible entrepreneurs gain access to TikTok-run masterclasses and live Q&A sessions with social media experts. They can learn content creation strategies and best practices for engaging the platform’s audience. TikTok is even offering the first three SMBs that register a free custom ad produced by a TikTok creator, a valuable kickstart in terms of content.
“SMBs are the heart of the UAE’s economy, and we are committed to helping them thrive in the digital era,” said Joanne Chehab, TikTok’s Head of Business Partnerships for MENA, emphasising that the collaboration provides both financial incentives and knowledge tools for small businesses to “show up authentically and creatively on TikTok”.
Visa’s UAE Country Manager, Salima Gutieva, echoed that sentiment, noting that SMEs are “essential drivers of economic resilience and innovation” and that Visa wants to equip them with skills to succeed in an increasingly digital marketplace.
Aligned With UAE’s Digital Economy Strategy
This public-private partnership dovetails with the UAE’s national strategies for innovation and digital transformation. The government’s National Innovation Strategy and Digital Economy Strategy highlight the need to double the digital economy’s GDP contribution (to over 20% by 2031) and encourage entrepreneurship.
By helping local businesses advertise online, TikTok and Visa are supporting these policy goals from the ground up. The initiative also complements Dubai’s recent efforts to foster startups and develop tech talent. It bridges financial enablement with digital creativity, pairing Visa’s trusted payment network with TikTok’s vast social media reach.
SMEs can not only access new customers through engaging TikTok content but also do so confidently, knowing a global payments brand is backing part of their journey. The timing is apt: with COP28 hosted in the UAE in late 2023 and a nationwide push for tech-driven economic diversification, empowering SMEs digitally has both economic and symbolic importance. It signals that the UAE sees its millions of content-consuming youth and entrepreneurs as key to future growth.
According to industry observers, the early response to the TikTok-Visa programme has been enthusiastic. Hundreds of small businesses in retail, food, and services, many of whom previously relied on word-of-mouth or basic social media, are seizing the chance to amplify their marketing. The partnership’s success could serve as a blueprint for similar fintech-tech collaborations in the region.
Analysts call the deal a “harbinger of fintech-digital media alliances” that can become a core growth lever for SMEs in emerging markets. By lowering costs and educating business owners, such alliances tackle two common hurdles: limited marketing budgets and digital know-how.
Combining robust financial support with innovative digital initiatives, the UAE is accelerating the growth of its all-important SME sector. On one hand, banks and government programmes (“ECB”) are pumping credit into small businesses, easing cash flow and expansion. On the other hand, partnerships like TikTok and Visa give these businesses modern tools to find customers and thrive online. The result is a more empowered, resilient SME base – one that can contribute even more to job creation, innovation, and the UAE’s post-oil knowledge economy.
Crucially, these efforts reflect a cultural shift: entrepreneurship is increasingly celebrated and enabled in the Emirates. As SMEs leverage new funding channels and digital platforms, many are transforming from local shops into regional and even global players. All indications suggest that the UAE’s focus on SMEs is paying off, GDP contributions are rising, and success stories are multiplying.
Moving forward, continued collaboration between financial institutions, tech firms, and policymakers will ensure that UAE SMEs remain a dynamic engine of growth, aligning with national visions and inspiring other MENA economies to bolster their own small business ecosystems.
In a region where economic diversification is paramount, the UAE’s SME empowerment playbook, which ranges from bank loans to TikTok ads, offers a compelling model of inclusive, innovation-led development.