Entrepreneurs of citizens and owners of small and medium enterprises reported that they face difficulties in establishing and managing their companies due to challenges hampering the work of the SME sector, calling for the intervention of the responsible authorities and taking steps that would re-govern the procedures for establishing small and medium companies, especially with regard to financing and dealing with banks .

They called on the central bank to grant banking facilities to companies through unified standards at the state level, regarding opening the account to companies, especially those that do not need any kind of financial support.

Establishment of the project

In detail, the Emirati business leader, Othman Al Ali, said that he “decided to establish his project in one of the free zones in the country, given the facilities that are offered compared to the introduction by the local economic circles, whose fees are high, in addition to the current tax challenges”, noting that "Citizens tend to open their projects in the free zones because of the lack of complications and fees, even though they are devoted to attracting foreign investments," he said, noting that this is a strange trend that reflects the challenges faced by those projects with local economic circles and their high fees.

Al Ali added that the first obstacle in the establishment stage is the banks, which do not provide support for small and medium enterprises, and do not distinguish between the requests of international companies and small companies, and everyone who needs to open a bank account is treated with the same procedures and requirements, which poses a great challenge to entrepreneurs, Where an amount of no less than 100 thousand to 200 thousand is imposed in the event that the account holder wants that no fees be imposed on the account on a monthly basis from the bank. He asked: Which small company can meet this requirement, pointing out that there is no support for small and medium companies that are part of the global strategic goals for the sustainability of the economy.

He said that the entrepreneurs pay financial amounts amounting to only 2,200 dirhams to complete the request for the bank’s procedures, including the membership of the Chamber of Commerce and Industry for companies in the free zones, although these companies do not need membership, but we have to pay the amount only to complete the request. Al Ali explained that the bank does not distinguish between large and small companies, as the nature and size of small and medium companies are not taken into consideration.

Participation in tenders

For his part, the entrepreneur, Hamdan Al-Kalbani, said that he "demands that the real opportunity be given to small and medium companies to benefit from tenders, and not to limit projects to companies without another, and only small and medium companies are called to give the formal opportunity to them."

He stressed that in the event the citizenship company obtains the tender, and when the owner of the company is known as a citizen, the negative idea is taken and the citizen’s ability to implement the requirements and the complexity of the procedures are taken, indicating that these authorities ask detailed questions while these questions do not ask other foreign companies participating in the tender.

He stated that entrepreneurs face the problem of the tax number of companies, as some projects are implemented with financial amounts of less than 300,000 dirhams, and after completion of implementation the government agency requests the tax number compulsorily, and given that the Federal Tax Authority does not give the small company a tax number in advance because of its size, The owner of the company cannot obtain his dues because there is no tax number, indicating that the authority does not grant the tax number, unless the amount is in the company's account.

Governmental entities

For his part, the entrepreneur, Obaid Al-Ketbi, said that although there is an administrative decision from the Ministry of Economy regarding supporting small and medium projects, it is not adopted by government agencies.

He stated that banks in the state set complexities and requirements without taking into account the difference between small and large companies or foreign companies and treating citizens like foreigners. He pointed out that the problem of opening an account for a new company is considered a complicated procedure, but support was provided by a local institution to support young people through a memorandum of understanding with a bank in the country, but the matter requires an eight-month period to open an account for the company, and the company is treated as if it is a company Global and customer data and invoices are requested although the company is new and does not have dealers, and these details are requested, under the slogan (Know your customer).

In turn, the business pioneer, Faisal Al-Shammari, said that after a journey for years in the experience of his project, he found that the main problem facing small and medium enterprises is concentrated in several points, the most important of which is the role that the central bank should play with banks and compel them to support small and medium companies, especially providing Facilities for opening a bank account.

He called on the central bank, to direct to grant banking facilities to small companies and to apply uniform standards at the state level, in terms of opening the account to companies, especially those that do not need any kind of financial support (borrowing), pointing to the need for formal channels to communicate with the central bank, governance and follow-up Implementing the state’s directions regarding decisions issued to support small and medium enterprises and issuing annual reports with real results that indicate the extent of the sector’s development or not.

Governmental support

The entrepreneur, Faisal Al-Shammari, called for a clear methodology regarding the results of government support for small and medium-sized companies, and the application of a holistic and integrated approach to support the sector between the Central Bank, the Ministry of Economy and the Ministry of Finance, despite the formation of teams and committees 10 years ago, but so far not resolved These problems are the main obstacles to support small and medium enterprises.

He said that the business leaders welcomed the amendments to the UAE government and are optimistic about the presence of a minister responsible for small projects, which reflects a firm and clear government approach to the importance of small and medium projects, calling for holding meetings with the minister, responsible authorities and the central bank to discuss the challenges of this sector and find practical solutions that suit it.

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