UAE cuts in-country value certification fee for SMEs

Move is intended to attract new investors and support the growth of industries

The National ICV Programme, launched in 2021, has contributed significantly to the UAE’s economy. Mona Al-Marzooqi / The National Section: Weekend

The UAE has reduced the fee for certain small and medium enterprises to obtain a national in-country value certificate as it seeks to create an attractive business environment for local and international investors and support the growth of national industries.

The reduced fee will apply to companies registered in the National Programme for Small and Medium Enterprises, according to the Ministry of Industry and Advanced Technology (MoIAT) and the Ministry of Economy.

The fee for the National ICV certificate has been cut to Dh500 ($136.14), MoIAT said in a statement on Tuesday.

The National ICV Programme, launched in 2021, redirects spending into the UAE economy. It enhances the competitiveness of UAE products in regional and international markets, attracts foreign investments, supports the UAE’s Fourth Industrial Revolution (4IR) programme and incentivises the technological transformation of the industrial sector.

Last year, the programme redirected Dh53 billion into the economy, a 25 per cent increase compared with the previous year.

Several new entities also joined the programme last year, bringing the total number of members to 26 federal and local government entities and corporations.

The programme also created new job opportunities for UAE citizens.

SMEs can enhance their competitiveness in tenders with government and major companies, helping to boost their growth by joining the National ICV Programme, the ministry said.

"The National ICV Programme is one of the projects of the 50 and is designed to support supply chain localisation, develop new industries, help diversify the national economy, and create quality job opportunities in the private sector," said Omar Al Suwaidi, undersecretary at the MoIAT.

"Over the past two years, the programme has achieved tremendous milestones through the increasing integration between MoIAT and federal and local bodies, which has helped to stimulate entrepreneurship and innovation, especially among start-ups and SMEs."

SMEs account for about 98 per cent of companies operating in the UAE. Developing the sector and accelerating the growth of the start-up ecosystem are priorities for the UAE government, under its development strategy for the next 50 years.

“SMEs in the UAE have access to many incentives, including competitive financing solutions through MoIAT's strategic partners, including the Emirates Development Bank (EDB) and a number of other banks and financing institutions in the country," Mr Al Suwaid said.

EDB provides direct and indirect financing to start-ups, SMEs and large corporates in five priority sectors – manufacturing, infrastructure, advanced technology, food security and health care.

The company has set aside Dh30 billion for direct and indirect lending to more than 13,500 companies in priority sectors by 2025.

The bank approved Dh6.1 billion in financing in 2022, a nearly eightfold jump compared with the previous year, and aims to offer at least Dh6 billion in funding this year, its chief executive Ahmed Al Naqbi told The National in a recent interview.

“The National SME Programme aims to empower entrepreneurs and small business owners by providing them with support through financing, marketing, and exposure as well as training and development," said Abdullah Al Saleh, undersecretary of the Ministry of Economy.

The ministry supports Emirati entrepreneurs by teaming up with institutions in the government and private sectors, in addition to strengthening regional and international co-operation with its partners to "drive sustainable growth and promote the contribution of SMEs to GDP", he said.

The National Programme for SMEs was established by the Ministry of Economy in 2014. and aims to support UAE-based entrepreneurs to grow and sustain their businesses.