Cabinet Resolution on Unified Definition of Small and Medium Enterprises

Article-level navigation isn't available for this document — showing the full text as extracted.

Home
Legislations
Cabinet Resolution on Unified Definition of Small and Medium Enterprises
Cabinet Resolution on Unified Definition of Small and Medium Enterprises

The last update on this law was listed on 10 Jul 2016

Related legislations

Issued Date

10 Jul 2016

Official Gazette Date

31 Jul 2016

Official Gazette No

600

Legislation State

Active

Disclaimer: Every effort has been made to produce an accurate and complete English version of this website/ legislation. However, for the purpose of their interpretation and application, reference must be made to the original Arabic text. In case of conflict, the Arabic text will prevail

Index
Index
Article (1) Definitions
Article (2) Definition of Enterprises
Article (3) Trade Sector
Article (4) Industry Sector
Article (5) Services Sector
Article (6)
Article (7)
Article (8)
Article (9)
Cabinet Resolution No. (22) of 2016 on Unified Definition of Small and Medium Enterprises

The Cabinet:
– Having reviewed the Constitution;
– Federal Law No. (1) of 1972 on the Competences of Ministries and Powers of Ministers, as amended,
– Federal Law No. (2) of 2014 on Small and Medium Enterprises,
– Based on the Cabinet's approval,
Hereby resolves as follows:

Article (1) Definitions

In implementing the provisions of this Resolution, the following terms and phrases shall bear the meanings assigned thereto respectively, unless the context otherwise stipulates:
State: The United Arab Emirates.
Law: Federal Law No. (2) of 2014 on Small and Medium Enterprises.
Council: Council of Small and Medium Enterprises.
Small and Medium Enterprises (SMEs): Any company or sole proprietorship engaged in an economic activity, whether it is small, including micro-enterprises, or medium, which is subject to the unified definition set forth herein.
Trade Sector: Any activity including the sale of a natural material or animal, agricultural or industrial product.
Industry Sector: Any activity including transformation of raw materials into processed or semi-processed materials, including an activity through which procedures, which lead to changing the function of any tool or material, are taken.
Services Sector: Any activity provided in return for a fee including the provision of utilities to third parties, including contracting and construction projects.

Article (2) Definition of Enterprises

For the purposes of considering enterprises to be small and medium enterprises, including micro-enterprises, such enterprises shall meet the stipulations of the unified definition as per the categories set forth in Articles (3), (4) and (5) hereof.

Article (3) Trade Sector

SMEs shall be deemed as engaged in the Trade Sector in case of meeting any of the standards of the following categories:
1. Micro-enterprises category, where the number of workers is not more than (5) persons or whose annual revenues are not more than AED (3) million.
2. Small enterprises, where the number of workers is more than (6) persons and less than (50) persons or whose annual revenues are not more than AED (50) million.
3. Medium enterprises, where the number of workers is more than (51) persons and less than (200) persons or whose annual revenues are not more than AED (250) million.

Article (4) Industry Sector

SMEs shall be deemed as engaged in the Industry Sector in case of meeting any of the standards of the following categories:
1. Micro-enterprises category, where the number of workers is not more than (9) persons or whose annual revenues are not more than AED (3) million.
2. Small enterprises, where the number of workers is more than (10) persons and less than (100) persons or whose annual revenues are not more than AED (50) million.
3. Medium enterprises, where the number of workers is more than (101) persons and less than (250) persons or whose annual revenues are not more than AED (250) million.

Article (5) Services Sector

SMEs shall be deemed as engaged in the Services Sector in case of meeting any of the standards of the following categories:
1. Micro-enterprises category, where the number of workers is not more than (5) persons or whose annual revenues are not more than AED (2) million.
2. Small enterprises, where the number of workers is more than (6) persons and less than (50) persons or whose annual revenues are not more than AED (20) million.
3. Medium enterprises, where the number of workers is more than (51) persons and less than (200) persons or whose annual revenues are not more than AED (200) million.

Article (6)

The Council shall perform a comprehensive study and provide the Cabinet with recommendations, at least once every three years, including determination of the necessity to update the unified definition referred to herein.

Article (7)

The Council's Chairman shall issue the appropriate decisions for taking the procedures necessary to implement the provisions of this Resolution.

Article (8)

Any provision violating or contradicting with the provisions of this Resolution shall be repealed.

Article (9)

This Resolution shall be published in the Official Gazette; and shall enter into force as of the day following its publication date.

Translated in cooperation with
</content>