Dubai banks found giving small businesses red carpet treatment

24/08/2011 - Dubai Investment News Posted by Neil King
Dubai banks found giving small businesses red carpet treatment

Local banks in Dubai are doing all it takes to win over small businesses as the UAE witnesses continued strong growth.Small business owners who are setting up in Dubai and other emirates are finding that short or mid-term loans are constantly being offered to them from banks and they are even offered gifts such as smartphones, Gulf News reported.It noted that since the second quarter of the year, there has been a large number of advertising campaigns from banks to attract small and medium-sized businesses. Since May, the Central Bank issued directives on retail lending, which had an impact on auto and personal loans.One business owner in Sharjah explained to the news provider: "Many of these banks have set rather high targets in extending loans to SMEs this year; with the Central Bank weighing in with tight controls on retail lending, small businesses are the next best option for banks."Further signs of a strong recovery in the UAE were shown this week when the Jobs Index from Bayt.com and YouGovSiraj revealed that 53 per cent of employers plan to hire new staff in the next three months.