SC Ventures, Commonplace Chartered’s innovation, fintech funding and ventures arm, goals to copy its profitable SME constructing technique in India, Southeast Asia and Africa to the GCC, and plans to roll out an formidable progress plan by a collection of strategic tie-ups.
The UK banking main arm is gearing up for a significant enlargement within the GCC area, with an aggressive technique to faucet into the area’s estimated over $200 billion financing alternative, particularly within the small and medium enterprise (SME) sector, its prime govt revealed.
“SMEs are the spine of the financial system, and our purpose is to equip them with all vital instruments to develop and thrive – safely and profitably,” Gautam Jain, Member, Head of SC Ventures – Center East, informed Arabian Enterprise in an unique interview.
The enlargement, deliberate in a phased method, will see the UK banking main arm launching within the UAE and Saudi Arabia over the following 9-12 months, with entry into different markets within the area sooner or later.
“The unmet financing wants alone in GCC is guesstimated to be over $200 billion. This, coupled with low digital penetration, presents a major alternative to offer related assist to the SMEs and assist UAE realise its ambition for SME assist and progress,” he stated.
Co-create and construct mannequin central to GCC technique
The Commonplace Chartered Financial institution (SCB) arm has already sewed up some high-profile partnerships within the area with massive names equivalent to Visa, LuLu Monetary Holdings and 7X, and is seeking to strike extra such collaborations to go a begin within the Center East market.
Jain stated SC Enterprise’s mannequin is to co-create and construct together with strategic companions who’ve a shared imaginative and prescient of unlocking the chance within the SME house by addressing their key ache factors.
It intends to leverage its complementary strengths to handle the issue and alternative, fairly than try to do it by itself, he stated, including that the corporate’s collaboration with like-minded companions, who’re dedicated to SME assist, acts as a catalyst for progress by unlocking shared assets and experience.
“We carry to the desk our experience in constructing, scaling international ventures, together with SME ventures, in different markets, our huge geographical community and shoppers, and human-centered design in co-creating ventures.
“Coupled this with our deep experience in commerce and provide chains, and related financing, we imagine that we’re uniquely positioned on this house,” the SC Enterprise’s chief govt stated.
He expressed the hope that general, the corporate’s initiative won’t solely scale back obstacles, but additionally speed up innovation, making them pivotal for the UAE’s financial diversification.
As for the enlargement plans within the area, Jain stated the corporate is planning to launch in UAE and KSA over the following 9-12 months, and that it’ll have a phased method.
“We are going to undertake a sector-led technique and consider different nations within the area progressively.
Enlargement targets evolving Center East SME sector
“We have now related expertise in constructing SME ventures in India, Southeast Asia and Africa and we’re assured to now carry this experience to the [GCC] area,” he stated.
Jain stated the corporate is hopeful of big progress potential within the area at a time when the SME sector within the Center East is evolving, with companies shifting past conventional industries equivalent to buying and selling and development.
“This shift is pushed by technological developments and supportive authorities initiatives, enabling SMEs to discover new alternatives in sectors like fintech, e-commerce, and healthcare.
“This pattern can be a part of a broader regional effort to diversify economies and scale back dependence on oil, positioning the Center East as a aggressive participant throughout a spread of industries,” he stated, including that SC Enterprise’s technique is to help these efforts with formidable financing and funding plans together with its companions.
“Reconnecting society with finance is what SC Ventures stands for. This synergy not solely expands buyer attain throughout borders but additionally enhances monetary inclusion and operational effectivity for SMEs, setting off a virtuous cycle of sustainable progress and aligning us to UAE’s nation-building agenda,” he stated.
The SCB arm is beginning its aggressive GCC enlargement with a bang by stitching up partnerships with some massive names within the sector.
Whereas it has signed a Memorandum of Understanding (MoU) with Visa, a world chief in digital funds, to develop options geared toward supporting SMEs throughout the Center East and North Africa (MENA) area early this month, the corporate has introduced partnerships with 7X, a number one commerce, transport, and logistics funding and holding group, and LuLu Monetary in the course of the Abu Dhabi Finance Week final 12 months to discover collaborative alternatives and co-create an SME centered startup within the area.
Jain stated these collaborations mark a significant milestone in fostering entrepreneurship and fintech innovation within the Center East.
“Along with our companions, we’re dedicated to supporting the expansion of startups and contributing to the area’s thriving fintech ecosystem,” he stated.
Within the UAE alone, SMEs are estimated to account for over 63.5 per cent of the nation’s non-oil GDP, making them a central aspect of the nation’s financial technique.
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