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UAE Company Formation / Licensing LawCabinet Resolution No. (22) of 2016 on Unified Definition of Small and Medium Enterprises

UAE Cabinet Resolution·Cabinet Resolution No. (22) of 2016

قرار مجلس الوزراء بشأن التعريف الموحد للمشاريع والمنشآت الصغيرة والمتوسطة

Authoritative Arabic version per the official UAE Legislation portal

Issued Date
July 10, 2016
Effective from
July 10, 2016
Articles
9
Last synced
Aug 31, 2026
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Plain-language summary

Establishes a unified definition of small and medium enterprises across UAE sectors including natural materials, agricultural and industrial products, and comme…

Synced from the official UAE Legislation portal · Plain-language summary by the LEXAI editorial team

Article-level text

Key Articles

9 articles

  1. 1

    Article 1

    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.

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    Cabinet Resolution of 2016 on Unified Definition of Small and Medium Enterprises 2

  2. 2

    Article 2

    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.

  3. 3

    Article 3

    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.

  4. 4

    Article 4

    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.

  5. 5

    Article 5

    Article (5) Services Sector SMEs shall be deemed as engaged in the Services Sector in case of meeting any of the standards of

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    Cabinet Resolution of 2016 on Unified Definition of Small and Medium Enterprises 3 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.

  6. 6

    Article 6

    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.

  7. 7

    Article 7

    Article (7) The Council’s Chairman shall issue the appropriate decisions for taking the procedures necessary to implement the provisions of this Resolution.

  8. 8

    Article 8

    Article (8) Any provision violating or contradicting with the provisions of this Resolution shall be repealed.

  9. 9

    Article 9

    Article (9) This Resolution shall be published in the Official Gazette; and shall enter into force as of the day following its publication date. Mohammed bin Rashid Al-Maktoum Prime Minister Issued by us. Date: 05 / Shawwal / 1437 AH Corresponding to: 10 / July / 2016 AD

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Note: The Arabic text of this legislation is the authoritative version as per the official UAE Legislation portal.

Articles in this law(9)
  1. 1Article (1) Definitions In implementing the provisions of this Resolution, the f
  2. 2Article (2) Definition of Enterprises For the purposes of considering enterprise
  3. 3Article (3) Trade Sector SMEs shall be deemed as engaged in the Trade Sector in
  4. 4Article (4) Industry Sector SMEs shall be deemed as engaged in the Industry Sect
  5. 5Article (5) Services Sector SMEs shall be deemed as engaged in the Services Sect
  6. 6Article (6) The Council shall perform a comprehensive study and provide the Cabi
  7. 7Article (7) The Council’s Chairman shall issue the appropriate decisions for tak
  8. 8Article (8) Any provision violating or contradicting with the provisions of this
  9. 9Article (9) This Resolution shall be published in the Official Gazette; and shal
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