Page 405 - Sustainable Cities and Communities Design Handbook

378 Sustainable Cities and Communities Design Handbook

The Establishment has set up a dedicated 700 million UAE Fund based on
Islamic banking principles in conjunction with the Dubai Islamic Bank to
provide access to capital at preferential terms for new entrepreneurs. The
application procedure is simple and repayment terms are highly favorable. For
existing small and medium business owners, the Establishment provides loans
at preferential terms via a network of affiliated banks. Repayment terms are
highly favorable. Moreover, the Establishment performs as an advisor to the
entrepreneurs seeking financing. The key benefits of the program are the
following:
l dedication to small and medium enterprises,
l simple and streamlined application process,
l competitive interest rates,
l highly favorable financing terms (repayment),
l financing both existing and new entrepreneurs. 14
The new law (Law No. 23 of 2009) confirms the commitment of the
Dubai Government to support the development of the SMEs. This sector
represents 98.5% of registered businesses in Dubai and 61% of the work force
employed. The law aims to strengthen Dubai’s position as a center for
entrepreneurship and enterprise development based on innovation and intel-
lectual property.
The emirate of Ras Al Khaimah is focusing on SMEs by encouraging them
to invest in untapped areas. It increases their management skills and ensures
high sales of their products. The Saud bin Saqr Programme for SMEs
supports business ventures in the field of Information Technology where young
investors can succeed. There is high demand for these services from the
market.
15
HSBC introduced the SME International Fund in line with the
government’s efforts to enhance the role of SMEs in the country. A fund of
100 million USD is dedicated to support UAE-based international SME
business. The Fund is a part of HSBC’s global strategy to support interna-
tionally focused SMEs, helping them to grow and conduct business
internationally. 16
Apart from the above-mentioned programs supporting SMEs, there are
17
significant government policies in place :
l SME Development Support Policies, e.g., Access to Finance, IP, Exports
and Internationalization, Bankruptcy, and Company Closures;

14. http://www.sme.ae/english/index.html.
15. http://www.ameinfo.com/hsbc-launches-dhs1bn-international-trade-sme-300518.
16. Inverstor’s Guide to the UAE 2010 e 2011, Your one - stop information resource, Ministry of
Economy, 2011.
17. PKF e Doing business in the UAE e Financial Reporting and Auditing, PKF International
Limited, UAE 04.2012.