Dubai govt. to speed up SME payments
Dubai has taken many steps to foster the growth of its economy. Considering 53 percent of its GDP comes from SMEs, it regularly launches initiatives that make the emirate attractive to entrepreneurs. In fact, 93 percent of all startups in the country are based in Dubai.
According to state-run news agency WAM, in a recent initiative to bolster economic growth, the government will now pay SMEs within 30 days instead of 90 days. This is expected to create AED 1.6 billion in additional liquidity to the SMEs.
The plan also includes reducing insurance cost to 1-3 percent compared to the current 2-5 percent. Moreover, it will allocate AED 1 billion to joint ventures between the public and private sectors, along with projects worth $270 million.
That’s not all, it also plans to allocate 5% of its capital projects worth up to AED 400 million to the SMEs. All these steps are likely to reduce financial pressure on SMEs and give them more business and liquidity to work with and grow their business.
Read more about these new initiatives here.