Dubai: His Highness Shaikh Mohammad Bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, yesterday (Monday) issued Law No. 16 amending bylaws of a previous law on the Dubai Small and Medium Enterprises (DSME).
The new law amends DSME objectives to include putting in place policies and strategic plans for entrepreneurship and setting up projects, as well as offering programmes and initiatives that are improved regularly to ensure the development of said projects.
It will be responsible for creating a suitable environment that offers investment opportunities for projects in the private and public sector. DSME will be tasked with studying the state of established projects and identifying key obstacles that obstruct their growth. It will also coordinate with banks and financial institutions to facilitate the availability of suitable financing options for DSME members.
DSME will be tasked with licensing members as per approved terms and conditions. It will collect an annual fee of Dh1,000 from licensed members during the first three years, while a fee of Dh2,000 will be collected during the fourth and fifth years of the license. The amendments stipulate that entrepreneurs from the Gulf Cooperation Council countries will be treated the same as Emiratis, and will be licensed as members as per DSME terms and conditions.
The amendments also state that all government bodies, institutions and companies that are owned by the government of Dubai, or in which the government has a stake that exceeds 25 per cent, will be obliged to exempt DSME licensed Emirati members from fees charged to add them to the aforementioned bodies’ suppliers list.
These bodies will also allocate 10 per cent of sales to DSME members, as well as allocating five per cent of commercial spaces in malls to members. Selections regarding these allocations will be made as per criteria set by DSME.
Priority will also be given for bids or offers submitted by members if the value of their submitted bid does not exceed five per cent of the value of the best tabled bid. Members will also receive a 20 per cent minimum discount on their tenancy contracts during the first three years.