Shaikh Mohammed amends SME Law

dubai — His Highness Shaikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, has issued Law No. 16 to amend some provisions of Law No. 23 of 2009 on Dubai SME establishment.

According to the amendments, Dubai SME can issue licences to members, based on the following conditions: The member must pay an annual fee of Dh1,000 for the first three years of the licence, and Dh2,000 a year for the fourth and fifth years, and shall be liable to pay any other fee during the first five years.

The law states that citizens of other GCC States will be treated in the same way as the UAE citizens in matters relating to membership, provided they comply with requirements laid down by the Dubai SME.

The amended law also states that all entities owned by the Government of Dubai, or in which the Government of Dubai has ownership of more than 25 per cent, are committed to exempting Emirati entrepreneurs from any registration fees for being a preferred supplier. It allocates 10 per cent purchases to the UAE nationals; and 5 per cent of the rental spaces for outlets owned by Dubai SME members provided they fulfill the eligibility criteria; giving priority to bids submitted by Dubai SME members if the bid value does not exceed 5 per cent than the best bid submitted.

The article states a minimum of 20 per cent reduction on rentals to Dubai SME members during the first three years of the lease and to notify Dubai SME of any support applicable to members.