Skip Ribbon Commands
Skip to main content
Sign In

 Law No. (23) of 2009 Concerning Mohammed bin Rashid Establishment for Small and Medium-Size Enterprises Development as Amended by Law No. (8) of 2012

Law No. (23) of 2009
Concerning the
Mohammed bin Rashid Establishment for
Small and Medium-sized Enterprises Development
as Amended by Law No. (8) of 20121


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 the Support of Youth Projects; and
Order Issued by the Ruler of Dubai on 2 October of 2002 Concerning the Support of Youth Projects,
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".

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.
MBR SME: The Mohammed bin Rashid Establishment for Small and Medium-sized Enterprises Development.
CEO: The chief executive officer of the MBR SME.
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.

Article (3)
1. This Law will apply to the Mohammed bin Rashid Establishment for the Support of Youth Projects established pursuant to Decree No. (15) of 2002.
2. The name "Mohammed bin Rashid Establishment for the Support of Youth Projects" is hereby replaced by the name "Mohammed bin Rashid Establishment for Small and Medium-sized Enterprises Development". The MBR SME will retain its legal personality required for the achievement of its objectives. The MBR SME is hereby affiliated to the DED.

Article (4)
The head office of the MBR SME will be located in Dubai. The MBR SME may open other offices and branches within and outside of the Emirate.

Article (5)
The MBR SME 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.

Article (6)
The Establishment aims to achieve the following objectives:
1. to promote the Emirate as a business hub for entrepreneurship and the establishment of SMEs;
2. to promote initiatives and innovative ideas of young business leaders and to motivate them to engage in economic activities; and
3. to develop and regulate programmes and initiatives targeting development of SMEs.

Article (7)
For the purpose of achieving its objectives, the MBR SME 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 MBR SME;
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 the objectives of the MBR SME.

Article (8)
A CEO will be appointed to the MBR SME pursuant to a decision 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 MBR SME;
3. draft the action plan, the budget, and the final accounts of the MBR SME and submit these to the Director General for approval;
4. supervise the day-to-day activities of the MBR SME;
5. represent the MBRSME before third parties, conclude the contracts and agreements required for the achievement of the objectives of the MBR SME;
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.

Article (9)
A programme known as the "Hamdan bin Mohammed Programme for Young Business Leaders" will be created within the MBR SME with the objective of promoting initiatives and encouraging young UAE national business leaders and increase 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 MBR SME in this regard;
2. qualifying, training, and initiating Members to conduct economic activities and business administration;
3. provision of consultancy services and conduct of studies on available projects and business opportunities;
4. raising awareness among youth of the importance of investment initiatives, ways of benefiting from opportunities, and of the incentives provided by the Programme to Members.

Article (10)
The MBR SME will be responsible for licensing Members as per the approved conditions and requirements in this regard, taking the following into consideration:
1. From the date of the licence and for the first three (3) years of business, 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 business, no fees will be collected except those stated in paragraph (1) of this Article.

Article (11)
1. All rights and obligations related to the incentive scheme adopted by the Mohammed bin Rashid Establishment for the Support of Youth Projects are hereby transferred to the Programme.
2. The rules and procedures adopted by the Mohammed bin Rashid Establishment for the Support of Youth Projects will continue to apply to the extent that they do not contradict the provisions of this Law and the resolutions issued in pursuance hereof.

Article (12)
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%).

Article (13)
The financial resources of the MBR SME will consist of the following:
1. the support allocated to the MBR SME in the budget of the DED;
2. return on the investments of the property of MBR SME;
3. fees for the services rendered by MBR SME; and
4. any other resources approved by the Executive Council.

Article (14)
In regulating its accounts and records, the MBR SME will apply the principles and rules of commercial accounting adopted by the Government of Dubai. The financial year of the MBR SME will commence on 1 January and will end on 31 December of each year.

Article (15)
All the rights and obligations of the Mohammed bin Rashid Establishment for the Support of Youth Projects are hereby transferred to MBR SME. All the employees of the Mohammed bin Rashid Establishment for the Support of Youth Projects will also be transferred to the MBR SME and will retain their existing rights. The provisions of Law No. (27) of 2006 Concerning Management of the Government of Dubai Human Resources will apply to all the employees of the MBR SME.

Article (15) bisi
Neither the Government nor the DED will be liable for any debts or obligations claimed from the MBR SME or the companies affiliated to it.

Article (16)
The Chairman of the Executive Council will issue the regulations and resolutions required for the implementation of the provisions of this Law.

Article (17)
Decree No. (15) of 2002 Establishing the Mohammed bin Rashid Establishment for the Support of Youth Projects, and the Order issued by the Ruler of Dubai on 2 October 2002 Concerning the Support of Youth Projects are hereby repealed. Any other provision will also be repealed to the extent that it contradicts the provisions of this Law.

Article (18)
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.


1Every 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.

i As amended by Law No. (8) of 2012

​​​

Skip Navigation Linkslaw23of2009

.