The fee exemption applies to registered Emirati members who have not completed the five-year period

The Government of Dubai has extended the five-year exemption given earlier to Emirati members of Dubai SME from paying licence fees to seven years.

Under Article No. (10) of Law No. (23) 2009, the licensing fee applicable on SMEs was Dhs1,000 for the first three years from the issuance of the licence, and Dhs2,000 for the fourth and fifth years.

The extension of fee exemption granted now applies to registered members of Dubai SME who have not completed the five-year period stipulated in Article No. (10) of Law No. (23) 2009. New members are not eligible for the extension.

The five-year exemption granted earlier contributed to reducing financial burdens faced by startups.

The decision was made as part of a directive issued by Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Dubai Crown Prince and Chairman of The Executive Council, as part of a series of initiatives aimed to support entrepreneurs and their startups to tide over the challenges posed by the pandemic and to address their concerns about growth and cash flow.

The Department of Finance, in coordination with the General Secretariat of the Executive Council and Dubai SME, has launched a series initiatives for small and medium-sized companies since 2018, which included allocating 20 per cent 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.

In Dubai, SMEs constitute nearly 95 per cent of all companies, employing 42 per cent of all workforce in the emirate and contributing to around 40 per cent of Dubai’s GDP, according to state-run news agency WAM.

Since 2002, Dubai SME has supported 10,803 member SMEs with incentives and relief measures worth over Dhs995m.

“Dubai has already announced five stimulus packages worth AED7.1 billion in the aftermath of Covid-19 and the outcomes have been phenomenal in terms of the emirate resuming full-scale economic activity while also enhancing its business competitiveness and investment attractiveness,” said Abdulrahman Al Saleh, Director General of the Department of Finance, Government of Dubai.

“Emirati entrepreneurs should be particularly supported and motivated since they are critical to ensuring the sustainability of the labour market and building a competitive national cadre, a key target emphasised once again by the leadership in the ‘Projects of the 50.’”

Source:https://gulfbusiness.com/emirati-members-of-dubai-sme-to-get-seven-year-exemption-on-licence-fee/