Standard Chartereds SC Ventures To Replicate Asia, Africa SME Model In GCC

The UK banking major arm is gearing up for a major expansion in the GCC region, with an aggressive strategy to tap into the region’s estimated over $200 billion financing opportunity, especially in the small and medium enterprise (SME) sector, its top executive revealed.

“SMEs are the backbone of the economy, and our aim is to equip them with all necessary tools to grow and thrive – safely and profitably,” Gautam Jain, Member, Head of SC Ventures – Middle East, told Arabian Business in an exclusive interview.

The expansion, planned in a phased manner, will see the UK banking major arm launching in the UAE and Saudi Arabia over the next 9-12 months, with entry into other markets in the region in due course.

“The unmet financing needs alone in GCC is guesstimated to be over $200 billion. This, coupled with low digital penetration, presents a significant opportunity to provide relevant support to the SMEs and help UAE realise its ambition for SME support and growth,” he said.

Co-create and build model central to GCC strategy

The Standard Chartered Bank (SCB) arm has already sewed up some high-profile partnerships in the region with big names such as Visa, LuLu Financial Holdings and 7X, and is looking to strike more such collaborations to head a start in the Middle East market.

Jain said SC Venture’s model is to co-create and build along with strategic partners who have a shared vision of unlocking the opportunity in the SME space by addressing their key pain points.

It intends to leverage its complementary strengths to address the problem and opportunity, rather than attempt to do it by itself, he said, adding that the company’s collaboration with like-minded partners, who are committed to SME support, acts as a catalyst for growth by unlocking shared resources and expertise.

“We bring to the table our expertise in building, scaling global ventures, including SME ventures, in other markets, our vast geographical network and clients, and human-centered design in co-creating ventures.

“Coupled this with our deep expertise in trade and supply chains, and associated financing, we believe that we are uniquely positioned in this space,” the SC Venture’s chief executive said.

He expressed the hope that overall, the company’s initiative will not only reduce barriers, but also accelerate innovation, making them pivotal for the UAE’s economic diversification.

As for the expansion plans in the region, Jain said the company is planning to launch in UAE and KSA over the next 9-12 months, and that it will have a phased approach.

“We will adopt a sector-led strategy and evaluate other countries in the region progressively.

Expansion targets evolving Middle East SME sector

“We have similar experience in building SME ventures in India, Southeast Asia and Africa and we are confident to now bring this expertise to the [GCC] region,” he said.

Jain said the company is hopeful of huge growth potential in the region at a time when the SME sector in the Middle East is evolving, with businesses moving beyond traditional industries such as trading and construction.

“This shift is driven by technological advancements and supportive government initiatives, enabling SMEs to explore new opportunities in sectors like fintech, e-commerce, and healthcare.

“This trend is also part of a broader regional effort to diversify economies and reduce dependence on oil, positioning the Middle East as a competitive player across a range of industries,” he said, adding that SC Venture’s strategy is to aid these efforts with ambitious financing and investment plans along with its partners.

“Reconnecting society with finance is what SC Ventures stands for. This synergy not only expands customer reach across borders but also enhances financial inclusion and operational efficiency for SMEs, setting off a virtuous cycle of sustainable growth and aligning us to UAE’s nation-building agenda,” he said.

The SCB arm is starting its aggressive GCC expansion with a bang by stitching up partnerships with some big names in the sector.

While it has signed a Memorandum of Understanding (MoU) with Visa, a world leader in digital payments, to develop solutions aimed at supporting SMEs across the Middle East and North Africa (MENA) region early this month, the company has announced partnerships with 7X, a leading trade, transport, and logistics investment and holding group, and LuLu Financial during the Abu Dhabi Finance Week last year to explore collaborative opportunities and co-create an SME focused startup in the region.

Jain said these collaborations mark a major milestone in fostering entrepreneurship and fintech innovation in the Middle East.

“Together with our partners, we are committed to supporting the growth of startups and contributing to the region’s thriving fintech ecosystem,” he said.

In the UAE alone, SMEs are estimated to account for over 63.5 per cent of the country’s non-oil GDP, making them a central element of the nation’s economic strategy.