Ras Al Khaimah government bodies collaborate to promote business start-ups

RAK ICC's corporate registry services will be promoted to SMEs in the emirate

RAK ICC and RAK SME signed a new deal to boost investment opportunities for entrepreneurs. Chris Whiteoak / The National

RAK International Corporate Centre (RAK ICC) and the Saud bin Saqr Establishment for Small and Medium Enterprises (RAK SME) signed an agreement to promote investment opportunities for entrepreneurs in the emirate.

As part of the deal, RAK ICC will offer its corporate registry services to small and medium enterprises and guidance on the structuring of investments through its companies.

“We are very pleased with this collaboration as we have seen a rising demand for legal vehicles allowing entrepreneurs, both Emiratis and expats, to structure their investments through RAK ICC entities,’’ Sameer Al Ansari, chief executive of RAK ICC, said.

RAK ICC “can provide various structures for SMEs that allow them to obtain financing ... in a cost-effective way.’’

The agreement also aims “to develop a corporate platform for SMEs, benefiting from the various corporate and legal features available at RAK ICC”, Yousef Ismail, president of the high commission of RAK SME, said.

The UAE is supporting small and medium enterprises with financing and other resources as it looks to diversify its economy away from oil.

Earlier this month, the Central Bank of the UAE (CBUAE) issued a new regulation to promote best practice among licensed financial institutions (LFIs) when dealing with small and medium enterprises.

The objective of the new rule is to improve SMEs' access to finance, the regulator said.

Under the new regulation, lenders must complete the opening of a bank account for SMEs within three days, providing the appropriate level of due diligence around money laundering and terrorism financing rules had been carried out.

Banks should refrain from exerting excessive pressures on SME customers when collecting debts and are required to disclose the reasons for any rejection of an application for credit, the regulator said.

The central bank also said this month it would extend its Targeted Economic Support Scheme, a Dh50bn package of zero cost loans introduced in March last year as a method of providing liquidity to companies via banks. The scheme has been extended until the end of this year.