Small and Medium Enterprises for form the backbone of any economy. So when a country or state chooses to focus on its SMEs, it lays the foundations for future growth and prosperity.
That is why the UAE has taken great strides to improve the backbone of its economy - its SMEs. As a result, the Dubai economy is booming, which means more small startup business ideas in Dubai have grown.
New laws have been introduced to help integrate SMEs and startups into the UAE territory. However, these new laws should preferably apply to all businesses to boost growth and contribute to national and global levels.
If you are someone, who is planning to kick-start their business in Dubai, then this guide is just for you!
SMEs in Dubai
The UAE government has focused on SMEs to grow for economic diversification and growth. By 2020-mid, there were almost 3,50,000 SMEs in the nation.
By 2021, the contribution of SMEs to the nation’s economy has spiked from 53% to 60%.
Here’s a guide on Best Small Business Ideas to Start in Dubai, which is a must-read for every investor.
Steps Initiated to Boost Small Business Setup in Dubai
A few of the initiatives taken by the UAE government to spike the growth rate of the small and medium enterprises in Dubai involve:
- Issuance of Federal Law No. 2 of 2014 on SMEs
This law is meant to protect, promote and regulate SMEs in the UAE. It offers a legislative framework to support and encourage SMEs to drive entrepreneurship and initiates business startups.
- The National SME Programme
This framework has been developed to provide financial assistance to grow businesses. In addition, the council helps the private entities to market their products and have better access to facilities and incentives.
- The UAE SME Council
The council has been framed to outline SMEs' strategic plans and policies. Furthermore, it is also developed to enhance the coordination between National Programme for SMEs and the participating bodies.
- Operation 300bn, the UAE’s Industrial Strategy
Under this law, the Emirates Development Bank will contribute to financing 13,500 SMEs and create 25,000 employment opportunities in the following business segments:
- Food Security
- Launch of Ministry of Possibilities
This concept combines technology with government moves, meant to apply design-thinking and experimentation to develop proactive digital solutions for the process of new company register.
The ministry holds four divisions that include:
- Department of Anticipatory Services
- Department of Behavioral Rewards
- Department of UAE Talent
- Department of Government Procurement
Setting up a business in Dubai is a popular way for companies to capitalize on the opportunities presented by the UAE's thriving economy. The government looks forward to being home to 20 unicorns by 2031- as part of a programme to back startups and SMEs.
With these laws governing SMEs and startups in place, entrepreneurs can breathe a little easier about investing in a company in Dubai. Just like the established business entities, it becomes necessary to brand the small businesses to enhance the reach.
Have a look at our latest guide on: How to Brand Small Businesses, which will give you a clear idea of the same.
Also, with the implementation of various laws by the government to boost small businesses and new company registration, setting up a business has comforted a lot of entrepreneurs in their decision making.
If you are someone who holds a business idea, Dubai is the best ground for you to implement the same.
Are you wondering how to proceed? Well, don’t worry- Commitbiz is here!
At Commitbiz, we are working towards simplifying the process down to a few simple laws following the best practices used in the Middle Eastern countries. So right from new company registration to meeting the legal requirements to opening a corporate bank account, our experts can assist you in the complete process.
For more details, feel free to speak to our advisors today-we’d be glad to assist!
1. What is Khalifa Fund?
Khalifa fund is a non-profit legal business entity incorporated by the Abu Dhabi Government to assist small entities in the following areas:
- Business counseling
- Financial support and advice
- Business monitoring
- Technical support
- Building the Khalifa Fund marketing network
- Training and skills development