Dubai/Bloomberg

Economy

Dubai plans to expedite SMEs payments to revive its economy

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The Government will pay SMEs within 30 days instead of 90 days.

Monday 04, March 2019

(Bloomberg) --Dubai plans to expedite government payments to small and medium-sized companies in an effort to revive economic growth in the Middle East’s trade and business hub.

The measure is expected to result in AED 1.6 billion ($435 million) of additional liquidity to the companies, the news agency said without elaborating.

The plan also includes a reduction in insurance costs for SMEs that will not affect their eligibility for government tenders.

One of the most diversified economies in the Middle East, Dubai is grappling with the impact of low hydrocarbon prices on its oil-rich neighbours as well as the introduction of new fees and taxes in the Gulf. Property prices have declined and the emirate’s main stock index dropped 25 per cent in 2018.

Authorities last year announced a raft of measures to reduce the cost of doing business in the emirate, which is part of seven sheikhdoms that make up the UAE. The federal government has loosened restrictions on visas to attract more tourists and investors.

The measures include plans to allocate AED 1 billion worth of projects to joint ventures between public and private sectors.

 

TAGS : SMEs

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