Dubai ruler issues amendments to SME law to aid development
Life for Dubai’s small and medium business community is about to get a little easier.
Sheikh Mohammed bin Rashid, Vice President and Ruler of Dubai, yesterday issued amendments to the law on Dubai SME to help develop the sector.
One of the changes relates to Emiratis. It states all entities owned by the Government of Dubai, or in which it has ownership of more than 25 per cent, are committed to exempting Emirati entrepreneurs from any registration fees for being a preferred supplier and allocating 10 per cent of purchases to Emiratis.
“Obviously these amendments cope with the envisaged role of SMEs not merely to contribute to the GDP but also to the innovation and sophistication of Dubai,” said a statement from the Secretariat General of Dubai Economic Council.
The new law deals directly with members of Dubai SME, an arm of the Department of Economic Development, mandated to develop and support the small and medium enterprises sector in Dubai. It allocates 5 per cent of retail space for outlets owned by Dubai SME members; gives priority to bids submitted by Dubai SME members; and offers a minimum 20 per cent reduction on rentals to Dubai SME members during the first three years of the lease.
The amendments also allow Dubai SME to issue licences to members, provided they pay an annual fee of Dh1,000 for the first three years of the licence, and Dh2,000 a year for the fourth and fifth years.
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Updated: November 14, 2016 04:00 AM