Dubai Fact-File Part 5:
Small Business Incentive Programs

5.1 Dubai Small Business Support Schemes

Government and municipal incentive programs for small business: There are no dedicated incentive schemes for small businesses in Dubai, but a business seeking to establish in one of Dubai’s Free Zones (the Dubai International Financial Centre, the Dubai Maritime City, the Dubai Airport Free Zone, the Jebel Ali Free Zone, and the Dubai Internet and Media Cities) can usually benefit from zero corporate and personal income tax and no currency restrictions.

Outside the Free Zones, reforms have been introduced which are aimed at making it much easier to set up in business in Dubai by reducing red tape and bureaucracy. These include the abolition of the AED150,000 minimum capital required to start a new limited liability company and faster registration. The government has also started making documentation available more widely in English to ease the registration process.

The Dubai Department of Economic Development is tasked with making access to funds for SMEs easier by way of the SME Development Agency, which will make available investment funding for specialized industries and sectors.

Business Start-Up Schemes: A new scheme was introduced in 2010 to assist foreign entrepreneurs to start up in business. The Mohammed Bin Rashid Establishment for SME Development (MBRESD) was previously only open to UAE nationals, bus has now been extended to foreign entrepreneurs wishing to set up in business in Dubai, providing support, mentoring and access to funding for new SMEs.

In July 2010, it was reported locally that the authorities in Dubai planned to launch an expedited visa and support system for entrepreneurs looking to establish in the Emirate, by the final quarter of 2010. In addition to speeding the visa application process for entrepreneurs, under the EntrePass Scheme, experts from the Mohammed Bin Rashid Establishment for SME Development (MBRESD) will provide targeted support and guidance. The scheme is to be launched on a small scale in Q4 2010, with ten entrepreneurs to be selected to benefit, but will reportedly be expanded subsequently, and is is expected to run until 2012/13.

Support Programs for Bank Lending: A new scheme was launched in 2009 aimed at making it easier for SMEs to gain access to bank lending. The scheme is backed by the Ministry of Economy, Ministry of Labour and the UAE Central Bank and applies to all of the UAE emirates, including Dubai.

The government definition of an SME is a company with less than 50 staff (small) and between 50 and 100 (medium). The government will initially provide guarantees for loans provided to SMEs by banks.

These government guarantees are of vital importance as banks are generally nervous about lending to fund SME start-ups due to the high failure rate of such new business ventures.

Introductory Guides

Dubai Artist Tax Guide

Dubai Contractor Tax Guide

Dubai Entrepreneur Tax Guide

Dubai Professional Tax Guide

Dubai Small Business Tax Guide

Dubai Sportsperson / Entertainer Tax Guide

Fact-File

Part 1: Dubai Business Formation for Individuals

Back to main Dubai page