Law
No. (23) of 2009
Concerning
the
Mohammed bin Rashid Establishment for
Small
and Medium-sized Enterprises Development[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. (18) of 2006 Concerning Management and Realisation of the Public Funds of
the Government of Dubai;
Law
No. (27) of 2006 Concerning Management of the Government of Dubai Human
Resources;
Law
No. (25) of 2008 Concerning the Department of Economic Development;
Decree
No. (15) of 2002 Establishing the Mohammed bin Rashid Establishment for Young
Business Leaders; and
The
Order Concerning Young Business Leaders issued by the Ruler of Dubai on 2
October of 2002,
Do hereby issue this Law.
Article (1)
This Law will be cited as “Law
No. (23) of 2009 Concerning the Mohammed bin Rashid Establishment for Small and
Medium-sized Enterprises Development".
Article (2)
The following words and
expressions, wherever mentioned in this Law, will have the meaning indicated
opposite each of them unless the context implies otherwise:
|
Emirate: |
The Emirate of Dubai. |
|
Executive Council: |
The Executive Council of the
Emirate of Dubai. |
|
DED: |
The Department of Economic
Development. |
|
Director General: |
The director general of the DED. |
|
MBRSME: |
The Mohammed bin Rashid
Establishment for Small and Medium-sized Enterprises Development. |
|
CEO: |
The chief executive officer of
the MBRSME. |
|
Programme: |
The Hamdan
bin Mohammed bin Rashid Programme for Young Business Leaders. |
|
SMEs: |
Small and medium-sized enterprises. |
|
Members: |
The small and medium-sized
companies and establishments registered with the Programme. |
1. This Law will apply to the Mohammed
bin Rashid Establishment for Young Business Leaders established pursuant to
Decree No. (15) of 2002.
2. The name "Mohammed bin Rashid
Establishment for Young Business Leaders " is hereby replaced by the name
"Mohammed bin Rashid Establishment for Small and Medium-sized Enterprises
Development". The MBRSME will retain the legal personality required for
the achievement of its objectives. The MBRSME is hereby affiliated to the DED.
The
head office of the MBRSME will be located in Dubai. The MBRSME may open branches
and offices within and outside of the Emirate.
The
MBRSME will have a capital of fifty million Dirhams (AED 50,000,000.00) that
may be increased pursuant to a resolution of the Chairman of the Executive
Council.
The
MBRSME aims to:
1. promote the Emirate as a business hub
for entrepreneurship and the establishment of SMEs;
2. promote initiatives and innovative
ideas of young business leaders and to motivate them to engage in economic
activities; and
3. develop and implement programmes and
initiatives targeting the development of SMEs.
For
purposes of achieving its objectives, the MBRSME
will have the duties
and functions to:
1. develop policies and strategic plans that promote programmes and initiatives related to the support, implementation, and regular development of SMEs;
2. determine the standards required for
the classification of SMEs;
3. determine the main support areas of SMEs,
as well as develop and implement relevant initiatives;
4. promote a favourable environment conducive
to the creation of investment opportunities for SMEs in the public and private
sectors;
5. establish and develop business
incubators and other projects and initiatives that contribute to the
achievement of the strategic objectives of the MBRSME;
6. review existing SMEs and identify the
main obstacles to their growth;
7. develop awareness programmes to
encourage setting up and developing SMEs;
8. conclude, in coordination with banks
and financial institutions, contracts and agreements to enable Members to avail
themselves of suitable financing solutions, and coordinate with external
suppliers to provide consultancy and support services to Members;
9. establish or hold shares in companies,
and own and take lease of real property and movables; and
10. perform any other duties required for
the achievement of its objectives.
A
CEO will be appointed to the MBRSME pursuant to a resolution issued by the
Chairman of the Executive Council. The CEO will have the duties and powers to:
1. propose policies and internal
regulations to support the implementation of programmes and initiatives related
to the development of SMEs, and submit them to the Director General for
approval;
2. propose legislation related to the work
of the MBRSME;
3. draft the action plan, draft annual budget,
and final accounts of the MBRSME, and submit these to the Director General for approval;
4. supervise the day-to-day activities of
the MBRSME;
5. represent the MBRSME before third
parties, and conclude the contracts and agreements required for the achievement
of the objectives of the MBRSME;
6. achieve the required performance
outcomes and submit performance reports to the Director General; and
7. perform any other duties assigned to
him by the Director General.
A
Programme known as the "Hamdan bin Mohammed Programme for Young Business
Leaders" will be created within the MBRSME with the objective of promoting
initiatives and encouraging young UAE national business leaders and increasing
their contribution to the economic activities in the Emirate through:
1. provision of financial and technical
support, and loans to Members in order to enable them to establish and own SMEs
by creating a special fund for this purpose that provides financing services in
accordance with the rules and principles adopted by the MBRSME in this regard;
2. qualifying, training, and empowering
Members to conduct economic activities and business administration;
3. provision of consultancy services and
studies on available projects and business opportunities; and
4. raising awareness among youth of the
importance of investment initiatives, and of the ways of benefiting from
opportunities and the incentives offered by the Programme to Members.
The
MBRSME
will be responsible for licensing Members as per the approved conditions and
requirements in this regard, taking the following into consideration:
1. For the first three (3) years after the
date of the licence , Members will pay an annual licence fee of one thousand Dirhams
(AED 1,000.00). Thereafter, the fees prescribed by the legislation on the
conduct of economic activities will apply.
2. During the first three (3) years of licensing,
no fees will be collected except those stated in paragraph (1) of this Article.
1. All rights and obligations related to
the incentive scheme adopted by the Mohammed bin Rashid Establishment for Young
Business Leaders are hereby transferred to the Programme.
2. The rules and procedures adopted by
the Mohammed bin Rashid Establishment for Young Business Leaders will continue
to apply to the extent that they do not contradict the provisions of this Law
and the resolutions issued in pursuance hereof.
All
Government entities as well as corporations and companies owned by the
Government of Dubai or in which the Government of Dubai holds more than fifty
percent (50%) of the share capital must:
1. outsource five percent (5%) of their purchased
goods and services from Members; and
2. give priority to any Member bidding
for a tender or auction, where the quality and price offered under that
Member’s bid does not exceed or fall below, as the case may be, the quality and
price offered under the best bid, by more than five percent (5%).
The
financial resources of the MBRSME will consist of:
3. support allocated to the MBRSME in the
budget of the DED;
4. return on investments of the property
of the MBRSME;
5. fees for the services rendered by the MBRSME;
and
6. any other resources approved by the
Executive Council.
In
regulating its accounts and records, the MBRSME will apply the rules and standards of
commercial accounting adopted by the Government of Dubai. The financial year of
the MBRSME
will commence on 1 January and will end on 31 December of each year.
The
Chairman of the Executive Council will issue the regulations and resolutions required
for the implementation of the provisions of this Law.
Decree
No. (15) of 2002 Establishing the Mohammed bin Rashid Establishment for Young
Business Leaders, and the Order Concerning Young Business Leaders issued by the
Ruler of Dubai on 2 October 2002 are hereby repealed. Any other provision in
any other legislation will also 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 5 July 2009
Corresponding
to 12 Rajab 1430 A.H.
©2016 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.