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Friday, November 15, 2024
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New incentives for UAE SMEs unveiled

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The UAE Ministry of Human Resources and Emiratisation has issued a ministerial resolution on supporting small and medium enterprises (SMEs) in the UAE through new incentives.

Businesses that will benefit from the new incentives must be members of accredited funds/schemes that support SMEs in the UAE, WAM news agency reported.

It said the new incentives included the classification of up to five businesses per owner in the first category instead of two, and five years of first category classification from the date of the license.

In addition, businesses with a license issue date not older than five years are eligible for incentives in the Tier 1 category instead of three years.

The division of companies into three tiers is based on Cabinet Decision No. 18 of 2022, which explains the specifics of each tier.

Khalil Al Khoori, Acting Undersecretary for Human Resources at the Ministry of Human Resources and Emiratisation, said: “The Ministry has announced various initiatives in line with the vision of our wise leadership.”

“Empowering the people of the UAE remains a top priority, as it has been since the Alliance’s inception, which encourages us all to continue to work hard to serve them better.

“We are proud of the UAE’s national wealth, young men and women who play key roles in efforts to diversify and accelerate economic development to build a vibrant world-leading economy, increase the country’s economic competitiveness and encourage innovation and entrepreneurship among its citizens in,” he added.

Al Khoori noted: “Empowering SMEs is a strategic focus of the country’s ongoing efforts to develop the UAE’s business sector, and the UAE has made great strides in laying the foundations for entrepreneurship and encouraging innovative start-ups and SMEs. The UAE is ranked first globally according to World Economics The “Global Competitiveness Report” released by the forum ranked first in the 2022 Global Entrepreneurship Index, and ranked fifth in the world in the Innovation Company Growth Index.”

Al Khoori emphasized that the Ministry continues to contribute to the country’s development of a strong and prosperous economic ecosystem, propelling the UAE to the top of the list in terms of competitiveness and global indicators.

condition

The ministerial resolution outlines five conditions for any SME to be classified as Tier 1 within five years. First, the business owner or all partners must be Emirati; Second, the business must be a member of a government-approved fund/scheme to support SMEs; Third, it must be managed by the owner himself, or managed by an Emirati manager; Fourth, , the owner shall not own or be a partner in other businesses subject to the restrictions of the Ministry and subject to any fines; fifth, the owner shall not own more than five companies, nor shall he be a partner or service agent therein.

eliminate

The resolution also stipulates several circumstances under which, depending on the criteria met, the classification of Tier 1 SMEs will be canceled and reclassified as Tier 2 or Tier 3: if the business employs more than 50 employees, or does not pay employees wages, or does not Ability to obtain a permit to employ workers for others issued by the Ministry of Human Resources and Emiratisation.

The Tier 1 classification of an SME may also be revoked if employees at other facilities work for the business, or if the business is sold or the ownership is transferred to someone else without notifying the relevant fund/programme or ministry supporting SMEs, or if it demonstrates that The business is managed by someone other than its owner or UAE manager, or in any case of breach of the conditions that classify SMEs as Tier 1.

definition

A business is defined as “small” if it is owned and managed by a UAE national, is a member of a government-approved fund/scheme to support SMEs, and employs no more than 15 people. However, if it employs 16 to 50 people, it is defined as “medium.”

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