Small and Medium Enterprises (SMEs)

Small and Medium Enterprises (SMEs) get special focus from the UAE Government as they are considered vital for the economic diversification and growth and also because they help in building national human resources. SMEs in the UAE find support for launching and growth from National SME Programme, The UAE SME Council, Operation 300bn, the UAE’s industrial strategy, Khalifa Fund and Dubai SME.

U.Ask

What are Small and Medium Enterprises SMEs

According to Federal Law No. 2 of 2014 on Small and Medium Enterprises (SMEs) (PDF, 1 MB), SMEs are companies or establishments exercising an economic activity. It includes micro, small and medium companies and establishments. The enterprises and establishments are classified based on two or more of the following:

  1. employment size
  2. size of annual returns
  3. capital.

Moreover, as per Cabinet Resolution No. 22 of 2016 on Unified Definition of Small and Medium Enterprises, for the purposes of considering enterprises to be micro or small and medium enterprise, they need to meet the following terms:

 

For the Trade Sector

SMEs shall be deemed as engaged in the Trade Sector in the following cases:

  1. Micro-enterprises category, where the number of workers is not more than 5 persons or whose annual revenues are not more than AED 3 million.
  2. Small enterprises, where the number of workers is more than 6 persons and less than 50 persons or whose annual revenues are not more than AED 50 million.
  3. Medium enterprises, where the number of workers is more than 51 persons and less than 200 persons or whose annual revenues are not more than AED 250 million.

 

For the Industry Sector

SMEs shall be deemed as engaged in the Industry Sector in the following cases:

  1. Micro-enterprises category, where the number of workers is not more than 9 persons or whose annual revenues are not more than AED 3 million.
  2. Small enterprises, where the number of workers is more than 10 persons and less than 100 persons or whose annual revenues are not more than AED 50 million.
  3. Medium enterprises, where the number of workers is more than 101 persons and less than 250 persons or whose annual revenues are not more than AED 250 million.

 

  • For the Services Sector

    SMEs shall be deemed as engaged in the Services Sector in the following cases:

    1. Micro-enterprises category, where the number of workers is not more than 5 persons or whose annual revenues are not more than AED 2 million.
    2. Small enterprises, where the number of workers is more than 6 persons and less than 50 persons or whose annual revenues are not more than AED 20 million.
    3. Medium enterprises, where the number of workers is more than 51 persons and less than 200 persons or whose annual revenues are not more than AED 200 million.

    • Creating an enabling environment for SMEs in the UAE

    Some of the steps taken by the UAE to boost SMEs are as follows. The UAE:

    1. issued Federal Law No. 2 of 2014 on Small and Medium Enterprises to protect, promote and regulate SMEs
    2. launched National SME Programme for developing the general frameworks and guidelines which will provide expertise, training, and technical and administrative support in various fields to promote and develop SMEs
    3. established The UAE SME Council – its role is to develop strategic plans and policies for SMEs, set the necessary rules and regulations to enhance coordination between the National Programme for Small and Medium-Sized Enterprises and participating bodies and promote sustainable economic development
    4. launched Operation 300bn, the UAE’s industrial strategy – under which Emirates Development Bank will contribute to financing 13,500 SMEs
    5. launched The National Agenda for Entrepreneurship and SMEs, which aims to establish the UAE as the entrepreneurial nation by 2031. 

    Key entities and programmes supporting SMEs in the UAE

    The National Programme for Small and Medium Enterprises

     The National Programme for Small and Medium Enterprises was established by Federal Law No. 2 of 2014 under Ministry of Economy and Tourism. It aims to enable Emirati entrepreneurs and SME owners to establish and develop their businesses.

    Members of the programme receive support in the following ways:

    • Financing: The programme works with partners and stakeholders to enable robust financing solutions for SME that allows for SME growth. 
    • Business support services: Enterprises are provided with facilities and incentives, as well as expertise, training, and administrative and technical support in various fields aiming to support small and medium enterprises and enable them to develop capabilities and obtain various services. 
    • Government procurement: It enables SMEs to access government procurement and work with other partners to develop a system that allows for their participation and growth. 
    • Business training: In coordination with the relevant entities, entrepreneurs get training seminars and workshops.

    Register in The National Programme for Small and Medium Enterprises.

     

    Ministry of Finance


    Ministry of Finance provides a range of special, exclusive benefits designed specifically for small and medium-sized enterprises (SMEs). Current benefits include: 

    Incentive packages for SMEs

    • during the evaluation process, an additional 10 per cent is added to the final score of SMEs.
    • SMEs receive at least 10 percent of total procurement annually, by monitoring the percentage of spending allocated to them through the digital procurement system.
    • products and services offered by SMEs are marked with a red label in the catalogue for easy identification.
    • SMEs benefit from facilitated registration and qualification processes, with simplified procedures and reduced documentation requirements.
    • a dedicated section in the Digital Procurement Platform catalogue is provided to display all products and services offered by SMEs.

    Digital Procurement Platform
    The platform is a digitally advanced procurement platform aimed to:

    1. improve the efficiency of government procurement processes
    2. accelerate and facilitate contracting between government entities and private businesses
    3. increase business opportunities.

     

    Federal Supplier Register

    If you are an SME owner or an entrepreneur, you can register your company in the Federal Supplier Register to apply for all government bids and tenders proposed by federal government entities.

    Read more about Ministry of Finance’s support to SMEs.

     


    Khalifa Fund
     
    Khalifa Fund, an independent economic development agency of the Abu Dhabi Government, has been supporting SMEs since 2007. It provides Emirati entrepreneurs, business owners and professionals with access to market, resources, mentorship and enterprise funding.


    Khalifa fund provides the following services to SMEs: 

    • Funding: Khalifa Fund has designed several funding products to support the growth and success of SMEs. Check your eligibility to receive funding from Khalifa Fund. 
    • Capacity building: Khalifa Fund helps entrepreneurs build, develop and grow their business by upskilling them with the right educational resources & mentorship.
    • Membership programme: Business support to non-funded SMEs, including a diverse range of services are available to members to support every phase of their commercial lifecycle. Member benefits are extensive and include everything from the waiving of government fees to curated connection opportunities with industry stakeholders and client prospects.

     

    Dubai Founders HQ
    Dubai Founders HQ offers funding in the form of grants, debt and equity. Other funding options include banks, VC funds and Angel funds.


    Related links: 

     

    MBZ Incubation and Entrepreneurship Center (MIEC)

    MBZ Incubation and Entrepreneurship Center (MIEC) at Mohamed bin Zayed University of Artificial Intelligence is designed to accelerate the innovation and adoption of artificial intelligence in the business sector by facilitating the journey from ideation to start-up creation.  

     

    Sharjah Entrepreneurship Foundation (Ruwad)

    Sharjah Entrepreneurship Foundation (Ruwad) supports entrepreneurs and national projects to develop SMEs in Sharjah. The foundation offers direct and indirect financing programmes to entrepreneurs and assists them in managing and developing their enterprises. It offers marketing advice and consultations to its members.

     

    Sharjah Entrepreneurship Center (Sheraa)

    Sharjah Entrepreneurship Center (Sheraa) supports the business environment by incubating entrepreneurship in Sharjah. It stimulates the establishment and growth of start-ups and offers them a range of services to develop their skills. It also offers resources to transform their ideas into innovative projects.

     

    Taziz Program for SME Development - Ajman

    The Taziz Program for SME Development aims to foster the growth of young entrepreneurs and ensure the continuity of businesses in the emirate Ajman. The programme's primary objectives include establishing a stimulating ecosystem for entrepreneurship and SME growth, generating employment opportunities and engaging UAE citizens in economic activities.

     

    Reyada Program - Ajman

    The Reyada program empowers owners of SMEs, who should be UAE citizens, of at least 21 years, to engage in trade activities and invest in economic ventures without high risks.

     

    Saud Bin Saqr Establishment for Youth Enterprise Development (RAK SME) - Ras Al Khaimah

    Saud Bin Saqr Establishment for Youth Enterprise Development (RAK SME) nurtures youth entrepreneurship and boosts SME success, focusing on diversifying the UAE’s national economy. It assists young UAE nationals in transforming their ideas into viable businesses by providing comprehensive support throughout their entrepreneurial journey. RAK SME offers a wide range of services aimed at aiding both, business development and personal growth.


    Area 2071

    Overseen by Dubai Future Foundation, Area 2071 is a co-creation space that brings together the world’s brightest minds, and offers the physical areas, labs, meeting spaces and infrastructure to bring to life the next wave of transformative ideas.


    Hub71, a business incubator
    The Abu Dhabi government established Hub71 to support technology startups in the emirate by attracting top venture capital funds and investors to increase the pool of capital available for startups and venture capitals in Abu Dhabi.


    Start-up incubators
    Find out key business incubators for start-ups across the UAE: 

     

    Fazaa Center for Business Incubators and Accelerators
    In July 2020, the UAE launched the Fazaa Business Incubators Center to support small and medium enterprises started by Emirati families. It creates a suitable environment helping Emirati families to launch their business and enter the labour market. 

    Future Industries Lab
    The Virtual Academy, run by Ministry of Industry and Advanced Technology (MoIAT) is designed to enhance the technical skills of SMEs and provide young Emiratis with knowledge in quality control and product development. Its ultimate goal is to build up the capacity of these industries for the future.


    The Lab offers innovative training programmes that explore future industries in collaboration with leading organisations and business groups in the UAE. This programme enables national industries to align their priorities and objectives with cutting-edge technologies and it elevates the competitiveness of SMEs and individuals. 

    EcoMark green accreditation framework

    EcoMark Global Accreditation is the sustainability accreditation framework for micro, small and medium-sized enterprises (MSMEs).
    Updated on:

    24 Apr 2026

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