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FINANCIAL NEWS
UAE to introduce new SME law by year-end
12 Jun 2012
(MENAFN) UAE’s Assistant Undersecretary for Economic Polices Affairs, Mohammad Saleh Shelwah, stated that as part of the country’s economic reform plan, a new law on small and medium enterprises (SME)s will be introduced by the end of 2012, reported Gulf News.
Shelwah added that the new law is forecasted to restructure and make bank loans simpler; moreover, it will help regulate the country’s banking sector.
He said that the SME sector is the largest employer in the UAE and its participation in the gross domestic product (GDP) is very high.
Moreover, the sector is playing a vital role in diversifying the UAE economy, to reduce reliance on oil revenues, through drawing investments and encouraging industrial projects.
It is worth noting that Dubai SME, part of the Department of Economic Development (DED), launched the SME Friendliness Index’ to give banks access to 230,000 SMEs in the country.
The index showed that since it is difficult for the sector to get bank loans, 86 percent of the SME’s have not applied for bank finance.
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