Apr. EN 2019

11 The desired impact of startups needs more time to materialise, despite the successes achieved to-date, including the associated successful investments. These companies are expected to maximise their economic value should efficient solutions be reached to address the challenges they face. Al Mazaya Report stressed that startups would certainly prove growingly successful in the region over the next few years, benefiting from the direct and indirect support provided by SMEs. Available industry data indicate that these companies' contributions to GDP increased to 20% in Saudi Arabia, with the Kingdom seeking to develop this sector so that it can become the main creator of job opportunities. The UAE economy aims to raise the contribution of SMEs to 60% by 2021, from 53% of GDP in 2018. The global average contribution of SMEs to GDP is 46%, with efforts made towards maximising their share expected to result in incremental contributions to the current GDP. Al Mazaya's report highlighted the importance and the significant role played by startups in the overall economic cycle. The high achievement rates of startups reflect the economic success of the local economies as a whole. In addition, the success achieved by these companies reflects favourably on the economic sectors they belong to. Providing basic incubators to startups will ensure success for existing SMEs. Mazaya Monthly Real Estate Report - Week 3 - April 2019 The report concluded by saying that the emerging companies’ environment is rapidly improving in the region; however, according to the report, there is still much to be done to reach the ideal scale of these companies. The progress recorded so far has not resulted in establishing integrated incubators capable of providing all forms of financial support and opening channels of local and international funding that help in promoting these projects and providing the needed legal and legislative support. There is now a growing need to establish such incubators in the regionso that young people can get the right opportunities and contribute to the economic future of the region and the world by maximising the performance of emerging companies.