Law No. (11) of 2012
Establishing the Mohammed bin Rashid
Fund to
Support Small and Medium-sized
Enterprises[1]
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We,
Mohammed bin Rashid Al Maktoum, Ruler of Dubai,
After
perusal of:
Law
No. (3) of 2003 Establishing the Executive Council of the Emirate of Dubai;
Law
No. (25) of 2008 Concerning the Department of Economic Development; and
Law
No. (23) of 2009 Concerning the Mohammed bin Rashid Establishment for Small and
Medium-sized Enterprises Development,
Do hereby
issue this Law.
This
Law will be cited as “Law No. (11) of 2012 Establishing the Mohammed bin Rashid
Fund to Support Small and Medium-sized Enterprises”.
The
following words and expressions, wherever mentioned in this Law, will have the
meaning indicated opposite each of them unless the context implies otherwise:
|
UAE |
: |
The United Arab Emirates. |
|
Emirate |
: |
The Emirate of Dubai. |
|
DED |
: |
The Department of Economic Development. |
|
Director General |
: |
The director general of the DED. |
|
MBR SME |
: |
The Mohammed bin Rashid Establishment for Small and
Medium-sized Enterprises Development. |
|
CEO |
: |
The chief executive officer of the MBR SME. |
|
Fund |
: |
The Mohammed bin Rashid Fund to Support Small and
Medium-sized Enterprises. |
|
Committee |
: |
The committee formed to supervise the Fund pursuant
to the provisions of this Law. |
|
Programme |
: |
The Hamdan bin Mohammed bin Rashid Programme for
Young Business Leaders. |
|
SMEs |
: |
The small and medium-sized enterprises owned by UAE
nationals who are Members of the Programme. |
A
fund named the “Mohammed bin Rashid Fund to Support Small and Medium-sized Enterprises”
is hereby established. The Fund will have financial and administrative autonomy
and the full capacity to enter into contracts and undertake legal dispositions.
The Fund is hereby affiliated to the MBR SME.
The
Fund will have the following objectives:
1.
to
enhance and promote entrepreneurship and investment initiatives of UAE nationals,
and diversify and develop the local and national economy;
2.
to
encourage UAE national youth to enter the private business sector and to establish
and own SMEs that create business
opportunities for them;
3.
to
provide financial support to existing SMEs of UAE nationals; and
4.
to
provide technical expertise in various fields to support UAE national SMEs
owners.
For
the purposes of achieving its objectives, the Fund will have the duties and
powers to:
1. prepare economic feasibility studies for
SMEs and investment initiatives submitted by Members of the Programme; provide
technical expertise to SMEs owners relating to the financial, economic,
marketing, administrative, and organisational aspects of SMEs; and assist them in
implementing such SMEs and initiatives;
2.
market
the products of the SMEs owners in cooperation and coordination with the relevant
entities;
3.
coordinate
among SMEs owners with the objective of helping them exchange expertise, and establish
an integrated process
in relation to their SMEs;
4.
provide
loans or financial guarantees to SMEs, or hold shares therein;
5.
attract
financial and technical support for SMEs, whether from individuals, companies,
or corporations operating in the UAE, or from specialised organisations;
6.
monitor
the compliance of the owners of the SMEs, which receive support from the Fund, with
the standards and rules prescribed by the MBR SME, by reviewing the reports submitted
by SMEs owners and by conducting field visits;
7.
create
a database of the names of the owners of the SMEs, which receive support from
the Fund, and the types of support provided to them; and
8.
develop
the assets of the Fund by investing its funds in bank deposits, investment
portfolios, and any other investment projects.
a. A Committee will be formed pursuant to
a resolution of the Director General to supervise the work of the Fund. This resolution
will determine the procedures for holding the Committee meetings and passing
its resolutions; and the term of membership of the Committee.
b. For the purpose of supervising the
work of the Fund, the Committee will have the authority to:
1. set the general policy for achieving
the objectives of the Fund and the methods of dealing with SMEs owners, submit these
to the Director General for approval, and supervise their implementation;
2. approve the criteria, rules, and
procedures for providing support by the Fund to SMEs owners, and submit these
to the Director General for final approval.
3. review and study reports of the director
of the Fund, and follow up the Fund’s activities;
4. determine applications for obtaining financial
and technical support from the Fund;
5. propose the financial and
administrative regulations and bylaws of the Fund, and submit these to the
Director General for approval;
6. form sub-committees and work teams and
determine their duties; and
7. perform any other duties relating to
the objectives of the Fund as assigned to the Committee by the Director
General.
The
director of the Fund will supervise the daily work of the Fund. For this
purpose, he will have the authority to:
1. implement the resolutions issued by
the Committee;
2. sign contracts and agreements as
authorised by the Committee;
3. prepare an annual report on the balance
sheet and final accounts of the Fund, and submit these to the Committee for
approval;
4. supervise the administrative body of the
Fund and manage the executive, financial, administrative, and technical affairs
of the Fund;
5. propose, and submit to the Committee
for approval, the rules and conditions for availing of the services of the Fund;
the procedures and conditions for submitting applications and the feasibility
of such applications; the conditions for disbursement or rejection of loans; and
all matters related to the incentives, benefits, and services provided by the
Fund;
6. disburse support to SMEs owners in
accordance with the procedures and rules adopted in this regard;
7. prepare reports on actual revenue and
expenditure and analysis and follow-up procedures to monitor performance, conduct
comparison with the approved budget, and assess and analyse the results of funded
SMEs; and present these reports to the Committee on a regular basis; and
8. perform any other duties assigned to
him by the Committee or the CEO.
The assets of the Fund will consist of:
1. revenues from building (B) owned by
the DED and located in the Business Village on Plot No. (129-621 – Port Said);
2. returns on the investment of, and revenues
from, real property allocated to the Fund by the Ruler, the Chairman of the
Executive Council, or the Director General; and
3. gifts and donations approved by the
Director General.
All
Government entities in the Emirate must cooperate with and support the Fund,
provide all data and information required by the Fund, and provide support to the
SMEs in which the Fund holds shares, or those financed or recommended by the
Fund. Such support will be determined pursuant to a resolution of the Director
General upon the recommendation of the Committee.
The
Director General will issue the bylaws required for the implementation of the
provisions of this Law.
Any provision in any other legislation
will be repealed to the extent that it contradicts the provisions of this Law.
This
Law comes into force on the day on which it is issued, and will be published in
the Official Gazette.
Mohammed
bin Rashid Al Maktoum
Ruler of
Dubai
Issued in Dubai on 12 December 2012
Corresponding to 28 Muharram 1434 A.H.
©2017
The Supreme Legislation Committee in the Emirate of Dubai
[1]Every
effort has been made to produce an accurate and complete English version of
this legislation. However, for the
purpose of its interpretation and application, reference must be made to the
original Arabic text. In case of
conflict the Arabic text will prevail.