The decision includes members of the Mohammed bin Rashid Enterprise Development Corporation

Hamdan bin Mohammed directs to extend the exemption of national entrepreneurs from licensing fees

• The extended exemption granted to small companies is expected to contribute to revitalizing the comprehensive economic movement in Dubai.

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His Highness Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of the Executive Council, directed to extend the period of exemption of citizen entrepreneurs, members of the Mohammed bin Rashid Establishment for Small and Medium Enterprises Development, who are owners of small and medium enterprises, from licensing fees stipulated in Article No. ( 10) of Law No. (23) of 2009, so that the period of exemption becomes seven years instead of five years.

His Highness praised the role of small and medium-sized companies in creating new opportunities for citizens, revitalizing the economic movement, and enhancing the country’s position as a global center for entrepreneurship and an attractive environment for people with creative ideas. Knowledge.

global center

His Highness Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum stressed that providing an exceptional and attractive competitive environment for entrepreneurs who own small and medium companies, comes in implementation of the vision of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, and His Highness’s directives to make Dubai It is a global center and a symbol of innovation, and a title for entrepreneurship that contributes to achieving qualitative successes for the diversified and sustainable national economy.

The decision to extend the exemption period aims to enable entrepreneurs and their startups to fully overcome the challenges arising from the global crisis represented by the outbreak of “Covid-19”, and focus on expanding their projects away from fears about financial flow.

Under Article No. (10) of Law No. (23) of 2009, the license fee applicable to small and medium-sized companies was 1,000 dirhams, during the first three years of issuing the license, and 2,000 dirhams for the fourth and fifth years, as this procedure had a basic and qualitative contribution to supporting These companies have, over the past years, reduced their financial burdens and fees, which was positively reflected on activating their role in the economic development of the Emirate and the UAE.

Application

The decision to extend the exemption from fees will be applied to currently registered members, who have not completed the five-year period stipulated in Article No. (10) of Law No. (23) of 2009, and the decision will not be applied to new members.

Noticeable results

The Director General of the Department of Finance in the Government of Dubai, Abdul Rahman Saleh Al Saleh, said that the extended exemption granted to small and medium-sized companies is expected to contribute to revitalizing the comprehensive economic movement in Dubai, noting that the government of the emirate had announced, in light of the directives of the wise leadership, five packages An economic stimulus with a total value of 7.1 billion dirhams, in the wake of the spread of the “Covid-19” crisis, stressing that the results were noticeable in terms of the emirate’s resumption of economic activity on a large scale, enhancing business competitiveness and its investment attractiveness.

He added: "We view easing the financial burden on small and medium-sized companies as a vital matter of great importance, given that it will help most local companies avoid accumulating financial obligations on them, while enabling them to use their cash reserves to enhance their presence and economic activity in support of Dubai's strategic development plans. ».

making the future

For his part, Director General of the Department of Economy and Tourism in Dubai, Hilal Saeed Al Marri, said that "the quick and decisive measures taken by the wise leadership and the government were the main factor that distinguished Dubai globally in managing the impact of the (Corona) pandemic with unprecedented efficiency."

He added that "promoting sustainable economic growth and supporting companies of different sizes and diversification of economic activities are among the emirate's priorities to be ready for the future, and even to create its own future to be the best in the world."

Al-Marri continued: “There is no doubt that supporting and developing exceptional Emirati cadres and foreseeing the future are at the forefront of the priorities of the national agenda and the comprehensive development plan that defines the features of the next 50 years for the country. Key sectors, including advanced technologies, healthcare, and miscellaneous services.

incentives

It is noteworthy that the Mohammed bin Rashid Establishment for Small and Medium Enterprises Development has provided, since 2002 until now, incentives worth more than 995 million dirhams to 10,803 members who own small and medium businesses.

stimulating initiatives

Since 2018, the Department of Finance, in coordination with the General Secretariat of the Executive Council and the Mohammed bin Rashid Establishment for Small and Medium Enterprises Development, has launched a set of stimulating initiatives for small and medium-sized companies from its members, including allocating 20% ​​of government purchases for the benefit of members, and special dealings with regard to primary insurance. And the final, and expediting the payment of company dues, in addition to the other benefits granted by Law No. 12 of 2020 regarding contracts and warehouse management in the Dubai government.

SMEs in Dubai constitute nearly 95% of all companies, employ 42% of the total workforce in Dubai, and contribute to about 40% of the emirate's GDP.

The decision to extend the exemption from fees comes in the wake of a series of incentives and assistance provided by the Mohammed bin Rashid Establishment for the Development of Small and Medium Enterprises, under the government's directives to ensure business continuity, during the epidemic phase and the precautionary measures adopted.

The latest exemption will particularly help small and medium-sized businesses, which have not been able to benefit from the incentives and aid, due to restrictions on business activities over the past two years.

• The Crown Prince of Dubai praises the role of small and medium-sized companies in revitalizing the economic movement and creating new opportunities

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