In support of Emirati entrepreneurs and to enhance the competitiveness of the business environment in the country

A ministerial decision authorizing the classification of 5 establishments for the employer within the “first category”

• Khalil Al-Khoury: "The people of the Emirates are a mainstay in efforts to diversify the economy and accelerate economic development."

picture

The Ministry of Human Resources and Emiratisation issued a decision regarding incentives for small and medium enterprises that are members of youth enterprise support institutions to support Emirati entrepreneurs and enhance the competitiveness of the business environment in the UAE.

Under the decision, the ministry will classify a maximum of five establishments, in the first category, instead of two, for the business owner who enjoys the support of one of the small and medium-sized enterprise support programs approved in the state, provided that his facilities meet the conditions, allowing citizen business owners to benefit from the advantages and incentives that are offered. For establishments classified in this category.

The decision comes in support of the small and medium-sized enterprises category and to enhance the competitiveness of the business environment in the country.

It also stems from the principle of ensuring the reduction of costs and operational fees for Emirati entrepreneurs.

The decision to classify the private sector establishments in the country into three categories, in implementation of the Cabinet’s decision, according to specific standards and requirements, accompanied by the application of a reduction in fees for a group of the Ministry’s services if the establishments adhere to the application of these standards.

In detail, establishments whose first license date did not exceed five years can now enjoy the privileges of the first category, instead of three years.

The new ministerial decision specified a period of five years for the facility to remain within the first category classification, starting from the date of issuing the first license for the facility's license.

Acting Undersecretary for Human Resources Affairs, Khalil Al-Khoury, said, “The ministry works through its initiatives based on the leadership’s vision of empowering the citizen and providing him with the means of success, because the people of the Emirates represent a mainstay in the efforts to diversify the economy and accelerate economic development to build an active and leading economy globally, and promote The country’s economic competitiveness and encouragement of innovation and entrepreneurship among its citizens.

Al Khouri added: “Empowering small and medium-sized companies is a strategic priority within the framework of the ongoing national efforts to develop the business sector in the UAE, which has made qualitative achievements in terms of laying the foundations of entrepreneurship and encouraging innovative start-ups, small and medium-sized companies, as it ranked first globally in the Global Entrepreneurship Index. In 2022, it is ranked fifth globally in the Innovative Companies Growth Index, according to the Global Competitiveness Report issued by the World Economic Forum.

Al-Khoury stressed that "the ministry is continuing to contribute to national efforts to develop the economic system to be more robust and prosperous, to bring the UAE to the fore in competitiveness and global indicators."

The ministerial decision set several requirements for classifying a small or medium enterprise within the first category facilities, as the owner of the facility or all partners in it must be UAE nationals, and the facility must be a member of one of the youth project support institutions approved in the country, and be managed by the owner of the facility himself Or a citizen manager, and the owner of the facility should not have any facilities he owns or a partner in that are registered with the Ministry and subject to any violations, and he should not own or participate in more than five facilities or be a service agent.

The decision also specified cases under which the classification of a small or medium-sized enterprise would be canceled in the first category, and reclassified into any of the other two categories, according to the classification criteria.

They include breaching any of the conditions for classifying small or medium enterprises, increasing the number of workers in the facility to 50 workers, failing to pay workers' wages, and not obtaining a license from the Ministry to employ workers for others.

The cases also include employing workers in other establishments it has, and selling the facility or transferring its ownership to another person without notifying the youth project support institutions or the ministry, and if it is proven that it is managed by someone other than its owner or a citizen manager.

The facility is considered small, in this case, if it is owned and managed by a citizen and has a membership in one of the youth projects support institutions approved in the state, and the number of its workers does not exceed 15 workers, while it is considered medium if the number of its workers is not less than 16 and not more than 50 workers.

It is noteworthy that the Youth Enterprise Support Institutions are the programs, funds, or other legal entities licensed by the competent authorities in the country aimed at supporting small and medium-sized enterprises, which are managed by citizens, namely: the National Program for Small and Medium Enterprises and Enterprises, the Khalifa Fund for Enterprise Development, and the Mohammed bin Foundation Rashid for Small and Medium Enterprises Development, Sharjah Foundation for Supporting Entrepreneurial Enterprises (Ruwad), Tazeez Program for Small and Medium Enterprises Development, Saud bin Saqr Foundation for Youth Enterprise Development, Saud bin Rashid Al Mualla Program for Youth Projects Sponsorship, and Small and Medium Enterprises Support Programs of the Fujairah Chamber of Commerce and Industry.

• "Human Resources and Emiratisation" is expanding in granting incentives to small and medium enterprises of citizens.

• 5 years for the duration of the stay of the small and medium enterprise within the classification of the first category.

Follow our latest local and sports news and the latest political and economic developments via Google news