Landmark SMEs law has big implications for UAE economy

Sheikh Khalifa, President of the UAE, has approved Federal Law No 2 of 2014, which will categorise SMEs, establish a dedicated council and determine incentives to be offered to small business owners.The legislation grants SMEs exemptions from customs tax for equipment, raw materials and goods for production purposes. It also exempts them the payment of bank guarantees that companies must pay per new worker.One of the goals of the legislation was to help raise the contribution of SMEs to the country’s economic output.