The UAE Ministry of Human Resources and Emiratisation has issued a new decree exempting small and medium-sized enterprises from bank guarantees, beginning October this year.

The decree supports the initiation of fresh projects and classifies them within the ministry’s first category, according to the stipulated conditions, said Wam news agency report.

The decree applies to two companies only for the same owner. The owner or all his/her partners must be UAE citizens and the company must be a member at the Youth Project Development Organization.

Saqr Ghobash, Minister of Human Resources and Emiratisation, said: "Following our partnership with the SME Board, the ministry decided to support SMEs for playing a vital role in our national economy, the decision is considered a major step towards reaching a competitive knowledge-based economy that revolves around young Emirati talents."

"The decree came in line with the on-going future government strategy which appreciates the empowerment of citizens in the labour market to enhance its productivity," Ghobash said.