Ras Al Khaimah, UAE – RAKBANK has unveiled the latest edition of its SME Confidence Index, revealing resilient sentiment and steady optimism across the UAE’s small and medium-sized enterprises (SMEs). Developed in partnership with RFI Global and based on responses from over 1,200 SMEs between October and December 2024, the Index recorded a score of 57, measured against a baseline of 50.
While the Index dipped slightly from 61 in 2023, it remains firmly in positive territory—reflecting strong adaptability and business confidence, especially amid challenges such as rising operational costs and the introduction of corporate tax.
“This has been a milestone for our Business Banking Group,” said Raheel Ahmed, Group CEO of RAKBANK. “We are proud to reinforce our role as a strategic partner to the UAE’s thriving SME sector.”
Optimism Holds Steady: 68% of SMEs expect a favourable business environment in the near future.
Revenue Trends: Over 60% reported revenue growth in the past two financial years.
Top-Performing Sector: Consumer & Retail Services lead with a sector confidence score of 60, driven by consumer demand and digital channel expansion.
Digital Shift: 22% of SMEs now sell online, and 45% use digital banking solutions regularly.
Sustainability Focus: 55% are either on or planning a sustainability journey; 1 in 3 cite it as a short-term priority.
Biggest Challenges: Operational costs, corporate tax, and borrowing costs are pressing concerns. Confidence in debt repayment fell to 39%, down from last year.
| Sector | Confidence Score |
|---|---|
| Consumer & Retail Services | 60 |
| Trading | 58 |
| Construction & Manufacturing | 57 |
| Transport | 57 |
| Public & Professional Services | 56 |
Smaller SMEs (revenue under AED 30 million) remain more confident (score of 58) compared to mid-sized businesses (AED 30–100 million) which posted 55.
RAKBANK is strengthening SME support through strategic partnerships, including a recent AED 1 billion co-financing deal with Emirates Development Bank, announced at the “Make it in the Emirates” forum. The bank was also named UAE’s Best Bank for SMEs at the Euromoney Awards 2025, recognizing its role in SME empowerment.
“We see ourselves as more than just a bank. We are growth partners—offering financial solutions, market insights, and advisory support that empower SMEs to thrive,” added Ahmed.
UAE SMEs are increasingly focusing on market expansion, product innovation, digital transformation, and sustainability. With tailored banking services and data-driven insights, RAKBANK remains committed to fueling this journey of transformation and resilience.
RAKBANK (National Bank of Ras Al Khaimah) is a leading UAE bank offering personal, business, and Islamic banking solutions since 1976. With a strong digital presence and 21 physical branches, RAKBANK empowers customers with innovative, human-focused banking.
RFI Global provides data-driven insights to financial institutions worldwide, enabling smarter, faster decision-making through tailored subscription research.
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