UAE plan to encourage small businesses

Emirates Bank International (EBI) is planning to set up a 50 million dirham ($13 million) fund to encourage UAE nationals to start their own business, the EBI chairman said in published remarks.

Ahmed Humaid Al-Tayer, who is also the communications minister, was quoted by local newspapers as saying the fund would give out loans of between 500,000 and one million dirhams. The loans would be interest free for the first three years.

"The project is designed to encourage UAE nationals to start their own enterprises instead of sponsoring expatriate enterprises," Tayer was quoted as saying.

Foreigners working in the UAE have to be sponsored by a UAE national to obtain trade licenses and work permits. Some UAE nationals derive most of their income sponsoring expatriates, who have to pay fees to their sponsors and sometimes a share of profits.

Nationals are outnumbered four to one by expatriates in the oil-rich country, which like its Gulf Arab neighbors is trying to encourage the private sector.