Dubai: In its latest move to support Emirati Entrepreneurs and Startups in their recovery from challenges introduced by the COVID-19 pandemic, the Government of Dubai has extended the earlier 5-year license fee exemption given to organizations by UAE citizens who are members of Dubai SME to seven years.
Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, the Crown Prince of Dubai praised the country’s Small and Medium Enterprises (SMEs) for their role in creating new opportunities as well as in positioning the UAE as a resilient economy and global hub for entrepreneurial innovations.
Earlier, Small and Medium Enterprises (SMEs) were required to pay $272.26 towards licensing fee for the first three years with another $544.52 charged for fourth and fifth year. This was subsequently waived off by the Government of Dubai to reduce the financial burdens faced by startups, which in turn enabled them to continue playing an active role in economic development in Dubai and the UAE.
The Department of Finance has partnered with the General Secretariat of the Executive Council and Dubai SME to launch a series of initiatives for small and medium-sized companies since 2018, including the allocation of 20 percent of government purchases for Dubai SME members and special dealings with regard to primary and final insurance as well as accelerating payment of corporate dues, in addition to other benefits granted by Law No. 12 of 2020 on Contracts and Warehouse management in Dubai Government.
SMEs contribute to nearly 95 percent of all organizations in Dubai, employing 42 percent of all workforce in the emirate and contributing to around 40 percent of Dubai’s GDP.
Extending the fee exemption follows a series of incentives and assistance offered by Dubai SME under the directive of the government to ensure business continuity during the pandemic phase and the subsequent precautionary measures adopted.
The latest exemption will particularly bring relief to SMEs that were not able to take advantage of the incentives and assistance due to the restrictions on business activity during the last two years.