Dubai's new small and medium enterprises (SME) classification system was launched yesterday (January 24) by Vice President, Prime Minister and Ruler of Dubai, His Highness Sheikh Mohammed bin Rashid Al Maktoum.

He said the new system will raise the contribution of SMEs to Dubai’s GDP, a step that will advance its transformation into an innovation-driven knowledge-based economy, according to a Wam news agency report.

The new classification system, a first-of-its-kind in the region, is based on a number of criteria including finance, governance, innovation and social responsibility, initiatives that are part of Dubai Plan 2021.

The classification is based on five set of factors: operational and financial, smart innovation, governance, foreign expansion plans and social responsibility. The evaluation for the classification will take a total of five working days.

The system is being implemented in collaboration with the General Secretariat of the Executive Council of Dubai and the Mohammed bin Rashid Establishment for Small and Medium Enterprises.

SMEs are expected to contribute a massive Dh65 billion to the Dubai economy and will account for 370,000 jobs by 2021.

Sheikh Mohammed affirmed that the UAE will consolidate its global position by launching new initiatives and implementing strategies to support the business community. He said the UAE is keen to encourage small and medium enterprises (SMEs) as they are important pillar of the national economy and key to enhancing Dubai’s competitiveness.

Sheikh Mohammed explained that economic diversity is a cornerstone for building a strong economic base for the UAE's post-oil phase.

Sheikh Mohammed urged emerging entrepreneurs to diversify their methods and adopt innovative projects and ideas to enhance their global competitiveness, stressing that he will continue to support them.

Sheikh Mohammed also expressed his appreciation for the efforts of the strategic partners of the initiative to develop plans and initiatives to serve SMEs and called on the banking sector to support the new classification system, highlighting the importance of building an environment that is both supportive and conducive to innovation.

Present at the launch ceremony were Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, Deputy Ruler of Dubai; Sheikh Ahmed bin Saeed Al Maktoum, chairman of Dubai Civil Aviation Authority and chairman of Emirates Group; Sheikh Mansour bin Mohammed bin Rashid Al Maktoum; Mohammed Abdullah Al Gergawi, chairman of the Executive Office of Dubai Government; and a number of government officials. The event was held at the headquarters of Dubai Executive Council, Emirates Towers.