A new and frankly exciting law has been passed in the UAE to help SMEs with funding. Just last week we published a blog as a virtual cry of frustration about how funding is a real dilemma for SMEs around the world.
The UAE has issued a ‘Movable Property Law’, this law will diversify how SMEs in the country can obtain funding. This law will enable SMEs to use assets they own like tools, as well as tangible and intangible assets as collateral when taking out loans this will help SMEs guarantee invoice discounting as well as asset financing.
This law is a game-changer in more than one aspect, this law will impact the UAEs economy significantly for the better as SMEs contribute to over half of the country’s GDP. Also, if you thought the UAE was a good place to do business, with this law the UAE has managed to further increase its foreign direct investment (FDI) competitive attractiveness using this law. It is truly a pleasure to see a country that cares about the well-being of its SMEs the way the UAE does.
To add the cherry on top the department of finance in Abu Dhabi is also working with the biggest three lenders in town to provide SMEs with credit guarantees where the UAE government guarantees 80% of SME loans.
The UAE government never stops working towards the betterment of SMEs in the UAE, and SMETalks look forward to supporting the community and help with developing it further.