Dubai increased the five-year license fee exemption granted to Emirati members of Dubai SME to seven years as part of a series of initiatives aimed at assisting entrepreneurs in overcoming economic challenges caused by the Covid-19 pandemic.

The decision, which is applicable under Article No. (10) of Law No. (23) of 2009, will allow businesses to focus on growth without worrying about cash flow, as well as create new opportunities for SMEs.

“Creating an exceptionally competitive and flexible landscape for SMEs is an integral component of Sheikh Mohammed bin Rashid’s vision to elevate Dubai’s status as a global hub for entrepreneurial innovation, while also consolidating our rich entrepreneurial traditions into a catalyst for economic diversification and sustainable economic growth,” said Sheikh Hamdan bin Mohammed, Crown Prince of Dubai.

According to Ministry of Economy data, the SME sector accounts for more than 94% of all companies operating in the UAE, employing more than 86% of the private sector’s workforce.

In Dubai alone, SMEs account for nearly 95% of all companies operating in the emirate, employing 42% of the workforce and contributing roughly 40% of Dubai’s GDP.

The licensing fee for SMEs was Dh1,000 for the first three years after the license was issued, and Dh2,000 for the fourth and fifth years.

Creating an exceptionally competitive and flexible environment for SMEs is a key component of Sheikh Mohammed bin Rashid, Vice President and Ruler of Dubai, vision to elevate the city’s status as a global hub for entrepreneurial innovation.

“Dubai has already announced five stimulus packages worth Dh7.1 billion in response to Covid-19, and the results 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 Dubai’s Department of Finance.

Since 2002, Dubai SME has provided incentives and relief measures totaling more than Dh995 million to 10,803 members.