Services aim to cut overhead of the UAE's 350,000 SMEs
UAE service provider Transguard has launched outsourcing solutions for Small and Medium-sized Enterprises (SMEs) designed to cut overheads and increase efficiency.
The initiative allows SMEs to benefit from their own, in-house teams, provided they are equipped to handle business functions such as administration, IT, PRO services, HR, healthcare, transport, payroll and visa processing.
While SMEs play a big role in the UAE’s plans to boost its knowledge economy, they are sensitive to economic peaks, cash flow issues and permanent staffing costs, leading to significant and recurring overheads, according to Transguard managing director Greg Ward.
“The introduction of outsourced white collar services will bridge gaps in administrative work, HR and employee services, while freeing the enterprise’s human capital to focus on the core operations of the business,” he added.
There are over 350,000 SMEs in the UAE, accounting for 94 percent of total companies operating in the country, and generating 60 percent of non-oil GDP. Their contribution is expected to increase to 70 percent of non-oil trade by 2021, according to the Ministry of Economy (MoE).
Furthermore, they account for 73 percent of companies in the wholesale and retail trade, 16 percent in the services sector and 11 percent of those in the manufacturing sector, according to figures from MoE.
Of the total working population of the UAE, 86 percent are employed by SMEs.
Transguard Group is an Emirates Group and Al Hail Holding company. It was established in 2001and today has a turnover in excess of AED1.9bn.