Business Incentives for SMEs in Dubai vs Sydney
SMEs are a significant source of employment and income in many countries Dubai and Sydney include the promotion of SMEs as part of their strategies. Below is the comparison of the incentives used by each of the cities in supporting SME growth.
Dubai
Financial Assistance
An initiative by the Dubai Department of Economic Development which entails financial assistance and funding programs for SMEs as well as offering business consultancy services to these businesses. Some of the resources are Mohammed Bin Rashid Fund for SMEs focusing on Capital Subsidies & Access to Capital. The following is the key factor that seems to have grabbed the attention of Dubai, credit guarantee schemes have been put in place to assist SMEs in borrowing by first protecting the lenders.
Tax Incentives
Dubai became a tax-free zone thus there are no corporate or personal income taxes for SMEs. This has reduced the financial pressure on small businesses by a very huge margin. The various free zones around Dubai engages SMEs with benefits such as providing them with 100% free capital from foreign investors, no duties on imports and exports and most importantly exemption on tax for up to fifty years.
Regulatory and Legal Requirements
Dubai also provides the corporate and legal requirements with ease through its pro-business organization such as Business Registration and Licensing (BRL) which ease the process of business incorporation. A number of changes has been implemented to improve the business conditions for SMEs such as permitting and licensing, and protect minority shareholders.
Other supporting facilities
SMEs centers offer desk sharing office, business development offices, incubation and accelerators. These centers provide coaching, learning opportunities, an employment possibility. This is done through initiatives such as the Dubai Future Accelerators and Dubai Startup Hub in provision of funding, guidance, and market access to the SMEs.
Sydney
Financial Assistance
There are different types of financial assistance provided by the Australian government some of which includes the:
- Small Business Grant
- Export Market Development Grant
- Business Growth Fund
Some of these are meant for funding the growth of SMEs so that they can tap into new markets. The following is a tax incentive for eligible R& D activities in form of tax offsets; it assists SMEs try to cultivate their businesses.
Structural Reliefs
They are immediate write off, simplified depreciation regime as well as Capital gains tax concessions intended to lighten the small businesses tax load. Small companies with an annual turnover of less than a specific figure are allowed to pay a lower corporate tax rate which in turn allows the entity to reinvest profits back to the business.
Regulatory and Legal Assistance
The Australia Business License and Information Service (ABLIS) assists SMEs to understand regulation needs as well as simplify the process of legal structure formation. Such measures as the Entrepreneurs’ Program offer information to SMEs on how to improve, funding for their development, and business connections.
Infrastructure and Support Services
Infrastructure and support services that are available and accessible to the Sydney SMEs include; Innovation Hubs & Business Incubators: Innovation Hubs & Business Incubators are physical spaces equipped with resources to accommodate start-ups and SMEs, offer mentorship and consulting and some of which located in Sydney include Sydney Startup Hub. Availability of a pool of skilled human resource from the Nation’s premier learning institutions enhances the growth and innovation of SMEs.
There is strong Institutional support for the SMEs in both Dubai and Sydney, but they target different business needs and context. Some of the benefits of doing business in Dubai include a favorable tax system that the government offers to SMEs, relatively easy business laws, and properly developed free zones for small businesses especially for those that do not want to pay taxes. Sydney on the other hand provides substantial financial support in from grants and tax incentives, predictable regulatory framework and readily available skilled labor.