Studies reveal that more than one-third of businesses are subject to sudden interruption in supply chains, with small, medium enterprises (SMEs) being the most vulnerable due to limited capitalisation and relative inexperience in mitigating these challenges.
Another one-third of businesses face downturns from increased competition or market fluctuations, with pricing, purchasing power and inflation being major influences.
Finally, data theft, malware, ransomware and other IT-related risks pose great danger to any SME trying to keep its head above water.
Are you protected?
The SME sector in MENA is estimated to generate approximately $1 trillion per year, a new study by MENA Research Partners (MRP) reveals.
The GCC market accounts for 34% of SMEs in the MENA region, consisting mainly of businesses in the UAE and Saudi Arabia. SMEs in these two countries are projected to employ 22 million people in the next five years, from a current 17 million.
In its Vision 2030, Saudi Arabia has set a target to increase the share of SMEs to its GDP from the current 20% to 35%, while the UAE, in its Vision 2021, set a target to increase the share of SMEs to its non-oil GDP from the current 60% to 70%.
Venture capitalists have invested approximately $1 billion into SMEs and start-ups in the past five years, and according to the Pearl Initiative, 90% of SMEs intend to raise capital finance over a two-year period.
Keep your dream a reality: Get properly insured
SMEs are driven by the prospect of achieving financial independence for their families and for those they employ, and do so by making smart choices.
With such high stakes and considering the hard work and planning that goes towards achieving those goals, it would be inconceivable to add new levels of risks, ones SMEs can’t calculate or don’t have control over, by not getting proper insurance coverage.
In a constantly evolving business and economic environment, business owners have an essential and often complex task of needing to predict and manage risks that their companies are exposed to.
In addition to the risks already mentioned, key suppliers and large customers could unexpectedly fail, leaving SMEs stranded, short on cash, and facing dire circumstances.
Insurance will provide the security and confidence SMEs need against risks of loss, damage or interruption, should the unexpected happen, i.e. an accident, conflict with a third party, legal issues with customers and multiple others.
Insure/ensure SME success
GIG Gulf, the first regional insurer provides a wide range of insurance policies for individuals and Asset Management with a purpose of empowering people to live a better life.
In the Gulf region, GIG Gulf has been present for more than 65 years, offering a wide range of insurance products and services for corporate, SME and individual customers.
GIG Gulf enjoys a global reputation as a premier insurer on the strength of a robust, personalised and knowledgeable service that caters to every client’s needs.
The company doesn’t just offer SMEs and business owners insurance against fire, burglary, third-party liability, work accidents and the typical range of crucial protection needs.
GIG in the Gulf offers a select portfolio of benefits and services, such as healthcare and life insurance, helping to reinforce productivity levels and assist with attracting and retaining talent for SMEs and business owners.
“GIG Gulf has developed a complete suite of affordable and tailor-made insurance solutions to meet these needs”, said Ricardo Arroyo, Chief Commercial Property & Casualty Officer at GIG Gulf.
“These solutions go beyond the pure indemnification of a loss to also include things like cost-free risk assessment, risk prevention and risk mitigation measures”.
GIG in the Gulf has on hand a team of experts available to listen and advise SMEs on their insurance needs.