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Unlocking the Potential of SMEs in the UAE: Exploring Challenges, Opportunities, and the Role of Organizational Learning in Manufacturing Innovation

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Despite the importance of SMEs in the UAE as key contributors to economic diversification and growth, several challenges constrain this sector. These challenges include resource limitations, regulatory compliance burdens, limited access to financing, and gaps in leadership and innovation adoption. Thus, this review paper aims to explore the opportunities, strengths, weaknesses, challenges, and threats faced by SMEs in the UAE manufacturing sector, with a particular focus on the role of organizational learning in driving innovation and performance. The findings reveal that while SMEs benefit from government initiatives, such as Vision 2030 and Operation 300bn, they are hindered by resource constraints, ineffective leadership styles, and insufficient knowledge management practices. Opportunities lie in adopting open innovation, green learning orientation, and fostering learning-based cultures. This paper recommends future research focus on integrative frameworks linking organizational learning with innovation strategies to enable resilience, sustainability, and enhanced competitiveness in the UAE’s manufacturing SMEs.
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