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UAE amends over 60 laws to support SME growth

SMEs account for 95% of companies operating in the UAE

Published: Tue 15 Oct 2024, 4:28 PM

Updated: Tue 15 Oct 2024, 4:29 PM

By
Issac John

Delegates and visitors at Expand North Star 2024. — Supplied photo

The UAE, which boasts a vibrant entrepreneurship and SME ecosystem, is geared up to position itself as a leading hub for entrepreneurship by 2031.

The UAE, which has been classified as the best place in the world to set up and operate new businesses, has amended over 60 laws to support the growth of SMEs and increase their contribution to the national economy, says Alia bint Abdulla Al Mazrouei, Minister of State for Entrepreneurship.

“Today, this ecosystem houses more than 50 government and private business incubators and accelerators. In light of these developments, the UAE has been ranked first globally for the third consecutive year by the Global Entrepreneurship Monitor (GEM) report 2023/2024, surpassing many advanced economies,” the minister said at a session titled ‘The UAE’s Vision for Entrepreneurship — Future Growth Opportunities for Local and Global Investors.’

The session took place at Expand North Star 2024, one of the largest events for startups and investors from around the world. The event is being organised by the Dubai World Trade Centre, and hosted by the Dubai Chamber of Digital Economy at Dubai Harbour.

According to the minister, SMEs account for 95 per cent of companies operating in the UAE’s markets and 86 per cent of the private sector workforce. Their contribution to the UAE’s GDP reached 63.5 per cent. Meanwhile, SMEs owned by Emiratis grew by 10.4 per cent in 2022.

Al Mazrouei said the UAE’s entrepreneurship and SMEs ecosystem is characterized by pioneering initiatives, a flexible legislative framework, and competitive incentives for establishing businesses and startups.

Outlining the Ministry of Economy’s efforts to enhance the national entrepreneurship environment, she said the ongoing programmes include launching the National Programme for Small and Medium Enterprises, The Entrepreneurial Nation, the Future 100 initiative, and the ‘Thabat’ family business programme. Other measures include the establishment of free economic zones and industrial complexes that support the growth of entrepreneurial ventures, competitive tax rates for companies, reduced fees for obtaining the ‘National Value Added Certificate,’ and the granting of golden visas to entrepreneurs and talented individuals for up to 10 years.

Al Mazrouei said the Ministry of Economy continues its efforts in collaboration with its partners at local, regional, and global levels, to position the UAE as a leading hub for entrepreneurship by 2031. “This is in line with the objectives of the National Agenda for Entrepreneurship and SMEs, as well as the goal to enhance innovation and creativity across various economic sectors, highlighting the vital role of startups in driving growth within the country’s SME sector.”

“Entrepreneurship is a key pillar in achieving the UAE’s goal of becoming the global hub for the new economy by 2031, as it encourages entrepreneurs and startups to establish projects in future and sustainable economic sectors such as FinTech, sustainable manufacturing, smart mobility, and AI,” the minister added.