Small and medium businesses are the sector on which much is maintained in the economy of any country. Just as the middle class is the backbone of any society, somewhere between very rich and very poor, average business occupies a similar niche between very large and very small companies, ensuring the stability of economic development.
The United Arab Emirates understand this as no one else and in its economic policy are betting, among other things, on creating the most comfortable conditions for conducting small and medium businesses in the country.
One of the evidences of the consistent economic policy implemented in the UAE, in relation to small and medium businesses, is the recently issued new decree of the ruler of Dubai, Sheikh Mohammed bin Rashid Al Maktoum, on the release of companies from administrative fines. This decree provides for the abolition of fines imposed by the Department of Economic Development of Dubai until the end of 2018. This measure, in the opinion of the developers of the decree, is designed to ensure further enhancement of the emirate’s competitiveness. It can be noted that the decree is a rare case of combining the interests of both the state and the private business sector, since it meets the needs of all market participants and the state as the supervising authority.
It should be noted that to date, the number of fines levied by the Department of Economic Development of Dubai, is more than 60 varieties.
According to the Department of Economic Development, the decree is “clear evidence of continued support of the business sector by the leadership of the emirate and assistance in overcoming all the obstacles that it faces.”
Note that the adopted decree is directly related to the previously introduced value-added tax at a rate of 5%. We all remember that the introduction of VAT in February 2018 caused many doubts about the popularity of such a measure, as well as concerns that business in the UAE will henceforth involve additional costs, liabilities, tax control and other negative aspects from the point of view of the commercial sector.
However, as practice has shown, the introduction of a new tax turned out to be quite feasible for business entities, and if we take into account the pleasant bonuses in the form of exemption from fines, we can confidently say that the state in the UAE really cares about the subjects of the market, providing them with comfortable working conditions.
According to Sami Al Kamzi, General Director of the Economic Development Department of Dubai (DED), “DED calls on all business owners to use a decree that exempts companies and institutions operating in the Dubai emirate from all fines imposed on them and facilitates the procedures for extending licenses until the end of 2018.”
Omar Bushahab, General Director of the business registration and business licensing sector in the Department of Economic Development of Dubai, added: “This decree is a positive step in promoting economic growth and strengthening Dubai’s position as one of the important commercial and economic centers at the international level.”
Note that the decree is part of Sheikh Muhammad’s initiatives aimed at reducing the costs of doing business and promoting investment in the emirate.