The UAE Ministry of Economy is setting up a special body to provide financing to small and medium-sized enterprises (SMEs) and start-ups.

The “Intangible Assets Finance Committee” will help businesses and start-ups gain access to essential financing and support the growth of their company, a statement on Wednesday said.

“It will support their growth and address any financing challenges they may encounter, particularly during their initial years of operation,” said Abdulla bin Bin Touq, Minister of Economy.

The initiative seeks to extend “comprehensive assistance” to small businesses in the country, strengthen SME financing and equip entrepreneurs with international best practices.

The project is the latest in a series of initiatives the UAE has launched, as it seeks to establish itself as an “entrepreneurial nation” in less than ten years and boost the GDP contribution of the SME sector.

As part of the National Agenda for Entrepreneurship and SMEs, the UAE aims to produce 10 unicorn start-ups by 2031 and rank in the top three of the Global Entrepreneurship Index.

SMEs in the country contribute up to 63.5% to the non-oil GDP. As of 2022, the number of SMEs in the country stood at 557,000. The figure is forecast to reach one million by 2030.

Patent incubator

The Ministry of Economy also launched another initiative called “Patent Incubator”, which is intended to support intellectuals and talents in the country.

The project deals with the documentation of the patent registration process in all seven emirates in the UAE and clarifies all roles and responsibilities involved in obtaining intellectual property rights.

Through the project, innovators will gain support and will be encouraged to apply for patents.

The two initiatives are expected to help boost the UAE’s position as a major hub for entrepreneurship and innovation, in line with the “We the UAE 2031” vision.

(Writing by Cleofe Maceda; editing by Seban Scaria ) seban.scaria@lseg.com