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UAE to Launch Loan Scheme for Small Businesses
DUBAI — The UAE plans to launch a lending programme dedicated to encourage and support Small and Medium Enterprises, or SMEs, top government officials said on Thursday.
Sultan bin Saeed Al Mansouri, UAE Minister of Economy, said the Cabinet has asked his ministry to put down a federal policy to support the small and medium businesses.
“The Ministry has studied and evaluated the status of SMEs in order to identify the challenges and opportunities in this vital sector. The Ministry also evaluated the experience of 28 countries in the field of small and medium businesses,” he said.
The UAE Central Bank will help the Ministry of Economy launch the loan programme through bank branches across the Emirates.
Sultan bin Nasser Al Suwaidi, the Governor of the Central Bank, said conditions for the SME loans shall be clearly defined and will be applicable to all citizens.
“The move will help increase citizens’ participation in their government,” Al Suwaidi said and added that an independent legal framework will be needed to administer programme, and that the government will thoroughly study financial plans for startups applying for loans.
The minister said that SMEs contribute about 46 per cent of the global GPD and form around 80 per cent of the total projects worldwide. SMEs encourage innovation, creativity, improve domestic work force and resources, and attract foreign investments, he said.
“There are many challenges facing SMEs in the UAE including lack of training, financing, high operation cost, expats labour, absence of marketing network to promote national products and procedural obstacles. We should exert huge efforts to tackle these challenges, by developing SME projects all over the UAE. We will also work to facilitate procedures of registrations and financing and to provide training programmes,” Al Mansouri said.
· issacjohn@khaleejtimes.com
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