New UAE law to boost SMEs

Planned United Arab Emirates legislation aiming to boost the growth of small and medium-sized enterprises will require 10 percent of future federal government contracts to be awarded to SMEs, the economy minister said last month, as reported by Reuters.  "We want to encourage government agencies to support SMEs to meet their purchasing, service and consulting needs," Sultan bin Saeed al-Mansouri told reporters.  The government is keen to promote SMEs in order to reduce unemployment among UAE citizens and help them establish their own companies, a step towards diversifying the economy beyond oil. The law is expected to be enacted within three months or less, Mansouri said, adding that it would boost SMEs' contribution to gross domestic product to 70 percent by 2020 from 60 percent in 2011.