ABU DHABI, 18 August 2022 (WAM) — The Emirate Ministry of Human Resources has issued Ministerial Resolution No. 251 of 2022 on supporting Emirati Small and Medium Enterprises (SMEs) with new incentives .
Companies to benefit from the new incentives must be members of accredited funds/programs supporting UAE SMEs.
New incentives include placing up to five companies per owner in the Tier 1 category, instead of two companies, and five years in the Tier 1 category starting from the license issue date.
Additionally, companies with a license issue date not exceeding 5 years are eligible for Tier 1 category incentives instead of 3 years.
The classification of companies into three stages is based on Cabinet Decision No. 18 of 2021, which explains the details of each stage.
“The ministry has announced various initiatives that are in line with its enlightened leadership vision,” said Khalil Al Kouri, deputy secretary for human resources at the Ministry of Human Resources and Emirates.
“Empowering the people of the UAE has remained a top priority since the founding of the coalition and it encourages us all to continue working hard to better serve them.
“We are committed to diversifying our economy, building a dynamic world-leading economy, increasing the economic competitiveness of our country, and accelerating our economic development efforts to encourage innovation and entrepreneurship. We are proud of the key UAE national wealth, its young men and women among its citizens,” he added.
“Empowering SMEs is an important step towards developing the UAE’s business sector, which has made great strides in laying the foundation for entrepreneurship and encouraging innovative start-ups and SMEs,” Al Khoori said. A strategic priority among the nation’s ongoing efforts, the UAE ranked first in the world, ranked first in the Global Entrepreneurship Index 2022, according to the Global Competitiveness Report published by the World Economic Forum. 5th, and 5th in the world for the growth index of innovative companies.”
Al Khoori emphasized that the ministry continues to contribute to the nation’s efforts to develop a robust and prosperous economic ecosystem, pushing the UAE to the top of competitiveness and global indicators.
Conditions The Ministerial Resolution outlines five conditions for SMEs to be classified as Tier 1 for a period of five years. First, the business owner or all partners must be emirates. Second, the company must be a member of a government-approved fund/program to support small businesses. Third, it must be managed by the owner himself or an Emirati administrator. Fourth, the owner cannot own or partner with another enterprise that is restricted and fined by the ministry. Fifth, the owner cannot own more than five of her companies or be a partner or service her agent.
The Revocation Resolution also provides for some circumstances in which an SME classification under Tier 1 may be revoked and reclassified to Tier 2 or 3 depending on the criteria met. or failed to obtain a license from the Ministry of Human Resources and Emirates to employ workers for others.
Classification of SMEs under Tier 1 is based on the fact that employees of other facilities work for the company, or the company is sold, or if its ownership is associated with a small business or a related fund/program that assists the ministry. It may also be revoked if transferred to another person without notice to us. If the business proves to be controlled by someone other than its owner or Emirati manager, or violates the conditions for classifying SMEs as Tier 1.
DEFINITION A business is defined as “small” if it is owned and controlled by an Emirati national who is a member of a government-sanctioned fund/program to support small businesses and has no more than 15 employees. On the other hand, if the number of employees is between 16 he and 50 he is defined as “medium”.