August 19, 2022
3 mins read

New incentives for Emirati SMEs unveiled

The new incentives include classifying up to five enterprises under Tier 1 category per owner…reports Asian Lite News

The Ministry of Human Resources and Emiratisation has issued the Ministerial Resolution No. 251 of 2022 regarding supporting Emirati small and medium-sized enterprises (SMEs) with new incentives.

The enterprises that will benefit from the new incentives have to be members of accredited funds/programmes that support SMEs in the UAE.

The new incentives include classifying up to five enterprises under Tier 1 category per owner, instead of two enterprises, and a five-year classification under Tier 1 category starting from the date of license issuance.

In addition, enterprises with a date of license issuance not exceeding five years may enjoy the incentives of Tier 1 category, instead of three years.

The categorisation of companies into three tiers is based on the Cabinet decision No. 18 of 2022, which explained the specifics of each tier.

“The Ministry has unveiled various initiatives in line with the vision of our wise leadership,” Khalil Al Khoori, Acting Under-Secretary for Human Resources Affairs at the Ministry of Human Resources and Emiratisation, said.

“Empowering the people of the UAE continues to be a top priority, as it has been since the Union’s establishment, which encourages us all to keep working hard to serve them better.

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

Al Khoori noted, “Empowering SMEs is a strategic priority within the nation’s continuous efforts to develop the business sector in the UAE, which has made great strides in laying the foundations for entrepreneurship and encouraging innovative start-ups and SMEs. The UAE ranked first globally in the Global Entrepreneurship Index 2022, and fifth globally in the Growth of Innovative Companies Index according to the Global Competitiveness Report issued by the World Economic Forum.”

Al Khoori highlighted that the Ministry continues to contribute to national efforts to develop a robust and prosperous economic ecosystem, pushing the UAE to the top of competitiveness and global indicators.

Conditions The Ministerial Resolution outlines five conditions for any SME to be classified under Tier 1 for five years. First, the business owner, or all the partners, must be Emirati(s); second, the enterprise must be a member of a government-accredited fund/programme for supporting SMEs; third, it must be managed by the owner themselves, or by an Emirati manager; fourth, the owner may not own or be a partner in another enterprise that is restricted by the Ministry and has any fines; fifth, the owner may not own more than five companies, or be a partner in, or a service agent.

Cancellation The Resolution also stipulates several circumstances under which the SME classification under Tier 1 would be revoked and reclassified to Tier 2 or 3 depending on the criteria it meets: if the enterprise hires more than 50 employees, or fails to pay the employees’ wages, or fails to obtain a licence from the Ministry of Human Resources and Emiratisation to employ workers for others.

The SME’s classification under Tier 1 may also be revoked if employees of other facilities work for the enterprise, or if the enterprise is sold or its ownership transferred to another person without notifying the concerned fund/programme that supports SMEs or the Ministry, or if it is proven that the enterprise is managed by someone other than its owner or an Emirati manager, or in the event of any breach of the conditions for classifying an SME under Tier 1.

Definition The enterprise is defined as a “small” if it is owned and managed by an Emirati national, a member of a government-accredited fund/programme for supporting SMEs and does not employ more than 15 people. Whereas, if it employs between 16 and 50 persons, it is defined as a “medium.”

ALSO READ: UAE private sector workers jump 9% to 5.3 mn

Previous Story

UAE Vice President praises role of humanitarian cadres

Next Story

Etihad Rail gets first batches of new fleet of trains

Latest from -Top News

UK MPs Slam Pakistan Over Minority Abuses

Minority communities such as Shias, Christians, Hindus, and Ahmadis continue to face harassment, violence, and intimidation. In many cases, law enforcement either turns a blind eye or enables the attacks through inaction…reports

Words Won’t Stop China, Quad Must Deliver

 If the Quad aims to counterbalance China’s growing influence, it must expand its focus beyond the maritime domain and address the continental dynamics of the Indo-Pacific…writes Imran Khurshid Despite early concerns that

India Stays Neutral on Dalai Lama Succession

As exiled Tibetan spiritual leader approaches his 90th birthday, he asserted on Wednesday that there will be the 15th reincarnation…reports Asian Lite News Responding to the Dalai Lama’s recent remarks, India on

USAID cut could kill 14 million more deaths

Human rights advocates and global health experts have expressed alarm at the speed and scale of the cuts…reports Asian Lite News A new study published in The Lancet has warned that ongoing

Trump goes nuclear on Mamdani

Mamdani, a 33-year-old democratic socialist and son of Indian-Ugandan immigrants, secured a surprise victory over former governor Andrew Cuomo in the Democratic primary.;…reports Asian Lite News President Donald Trump has intensified his
Go toTop

Don't Miss

‘UAE steadfast in its march towards sustainable recovery’

The UAE leadership’s close supervision confirms the UAE’s readiness to

Sheikh Mohammed seeks new Hope Makers 

His Highness Sheikh Mohammed bin Rashid Al Maktoum has announced