Dubai – Mubasher: Dubai is looking to accelerate government payments to small and medium-sized enterprises (SMEs) in a bid to restore economic growth in the Middle East’s trade and business hub.
Dubai government will pay SMEs within 30 days instead of 90 days, state-run news agency WAM reported.
The measure is expected to result in AED 1.6 billion ($435 million) of additional liquidity to the companies.
Moreover, the plan includes a reduction in insurance cost for SMEs within a range between 1% and 3% instead of 2% and 5% that will have no effect on government tenders.
The move also includes intentions to allocate AED 1 billion ($270 million) for joint ventures between the public and private sectors, WAM added.
The government will also allocate $270 million worth of projects to joint projects between the public and private sectors.
It will allocate 5% of its capital projects to SMEs in a bid to allow them to get projects worth of up to AED400 million ($109m).
Over the course of the previous year, the emirate’s main stock index and property prices went down 25%.
