Small and medium-sized businesses in the UAE are impatiently awaiting the implementation of a law that will oblige government bodies to spend at least 5 per cent of their budgets for the goods and services SMEs offer.
At least one UAE business plans to raise the issue at a forum for international SMEs starting today.
The Khalifa Fund is hosting the 10th International Network for Small and Medium Enterprises (INSME) in the capital over the next three days.
“Every year they say ‘next quarter the law will be issued,’” said Abdulla Al Shammari, the chairman of Cirta Electro Mechanical Contracting and Maintenance, an Abu Dhabi-based firm. “I have the newspapers to prove it. We will try to put our problem on the desk so that decision-makers do something. There is not enough support from the Government.”
The Small and Medium Enterprises Law was approved by the Federal National Council last June. Final approval from the UAE Cabinet is yet to come. The law has been in the pipeline for years.
The UAE is eager to help SMEs flourish as the country diversifies its economy away from oil and gas. SMEs are considered essential to any economy as a way of creating prosperity and jobs. The Khalifa Fund is an Abu Dhabi-based organisation that supports new business with loans to start up and expand.
Khalid Al Shekaili, the chairman of the food manufacturing group Popular Popcorn, said he too was anxious for the law to come force.
Mr Al Shekaili is building on his initial idea of producing healthy snacks by using product packaging to carry educational messages. He wants to supply his product to the Abu Dhabi Education Council and police force, but those organisations say budgetary constraints prevent them from becoming customers. He hopes the new law will force a reallocation of cash.
“It’s tough to go through without that law,” Mr Al Shekaili says.
The theme of this year’s INSME meeting is “Investing In Innovation – Building a Sustainable Knowledge-based economy”. Speakers at the conference will include representatives from Google and the OECD.
lgutcher@thenational.ae
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