By Bloomberg / Arabian Business
Dubai government will also allocate $270m worth of projects to joint ventures between public and private sectors, and give them 5% of capital projects
Dubai plans to expedite government payments to small and medium-sized companies in an effort to revive economic growth in the Middle East’s trade and business hub.
The government will pay SMEs within 30 days instead of 90 days, according to the state-run WAM news agency. Dubai government will set a classification of the SMEs entitled to receive their dues within 30 days.
The measure is expected to result in 1.6 billion dirhams ($435 million) of additional liquidity to the companies, the news agency said without elaborating.
The plan also includes a reduction in insurance costs for SMEs (to the range of 1-3 percent instead of 2-5 percent) that will not affect their eligibility for government tenders.
The measures also include plans to allocate 1 billion dirhams ($270m) worth of projects to joint ventures between public and private sectors.