Legislative session discussing a federal law pertaining to small and medium enterprises:
Honorable Chairperson:
“Enterprises and establishments: Any company or individual entity engaged in economic activities, whether small, including micro-enterprises, or medium-sized.”
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- The committee amended the principle of benefiting micro-projects from this project, so there would be an obligation to include them within the definitions of small enterprises to be issued by the Cabinet.
Excellency the President:
“Now, the committee’s addition to this definition, which is the term ‘micro-enterprises,’ does the Council agree to this amendment? The word is for Brother Khalifa Al Suwaidi.”
Honorable / Ali Issa Al Nuaimi: (Committee Rapporteur)
“In fact, regarding the definition mentioned earlier, we left the definition issue because it is variable and depends on the time period. Today, small and medium enterprises may have a different definition than they would have in ten years. Therefore, we left this matter to the government to determine this definition and change it as they see fit.
Regarding the addition mentioned by the doctor, we can take it into consideration in the formulation. Thank you.”
Excellency the President:
“Please, Counselor.”
Mr. / Dr. Hisham Mohamed Fawzi: (Council Legal Counsel)
“In addition to what the Minister and the rapporteur have mentioned, in the definition we specifically intended to include micro-enterprises within small enterprises. Therefore, the Cabinet will be committed in the future when establishing the definition. For example, the number of workers may not be a minimum of three but zero, thus opening the door for self-employment, which the honorable member mentioned. Therefore, private projects or self-employment will fall under micro-enterprises. This is one aspect.”
Honorable / Dr. Sheikha Ali Al-Owais:
“Thank you, Mr. President. I would like to emphasize the issue of what about companies formed by a group of youth? Does this law apply to them?”
Excellency the President:
“It applies because it first mentions ‘company’ and then ‘individual entity,’ so it includes both the company and the individual entity. The word is for Brother Hamid Bin Salem.”
Honorable / Hamid Mohamed Bin Salem:
“Thank you, Mr. President. In reality, I have a note because in the new Companies Law there is a sole proprietorship. So, I request clarification from the legal counsel. If we say here ‘company or individual entity,’ does ‘individual’ apply to the company and the entity or only to the entity?”
Excellency the President:
“Please, Counselor.”
Mr. / Dr. Hisham Mohamed Fawzi:
“We have included the sole proprietorship in the Companies Law. However, there may be a civil activity or an individual entity not subject to the Companies Law. Therefore, caution here is necessary, and the definition should be correct in this wording because it includes those concerned. Thank you.”
Honorable / Hamid Mohamed Bin Salem:
“Thank you, Mr. President. My question is just that sometimes the Minister and the Ministry encourage the merger of companies. If two entities merge to become a company, does this law include them or not?”
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Excellency the President:
“Please, Counselor.”
Mr. / Dr. Hisham Mohamed Fawzi:
“Of course, if individual entities merge into a company, the law will include them. We have mentioned that one of the objectives is to encourage self-employment and mergers between entities to become large entities. This will be included as an addition from the respected committee in the objectives clause. Thank you.”
Excellency the President:
“Now, does the Council agree to this definition as amended by the committee? (Agreement)”
Honorable Chairperson:
“.4 Enhancing the competitiveness of projects and establishments to provide employment opportunities.
- There is an amendment where the text becomes as follows: “.4 Enhancing the competitiveness of projects and establishments and providing opportunities for work for the national economy.”
Excellency the President:
“Does the Council agree to this item as amended by the committee? The word is for Dr. Sheikha Al-Owais.”
Excellency the President:
“Please, Counselor.”
Mr. / Dr. Hisham Mohamed Fawzi:
“Excellency the President, when we reviewed the text, we found that it says ‘enhancing the competitiveness of projects…’ meaning competitiveness only for the sake of providing employment opportunities. We found that this goal is too narrow. Why not make competitiveness to achieve more than just providing job opportunities, such as providing employment opportunities to increase national output or improve production quality? All these matters will achieve competitiveness. So, if we agree with the text provided by the government, the goal would be limited or weak. Therefore, we expanded the goal to include competitiveness for production quality, increasing national output, and also providing employment opportunities. This was the goal, and it is to broaden the objective of competitiveness. Thank you.”
Honorable Chairperson:
“New clause
“.3 Commitment of public joint-stock companies to contract with projects and establishments in the country by no less than 2% of the total contracts to meet their purchasing, service, and advisory needs.”
- Justification: This clause was introduced to support projects and establishments and grant them more opportunities for success.
Excellency the President:
“Does the Council agree to this new clause introduced by the committee?”
Mr. / Dr. Hisham Mohamed Fawzi:
“Excellency the President, there is a difference between public joint-stock companies and shares owned by the government, which may contribute at least 25%. Therefore, a public joint-stock company may not be contributed by the government at all or it may only own 5% or 2% of it. Therefore, public contribution is offered to the public for subscription and is listed on the stock market. Therefore, the matter returns to the Council. Therefore, if he only wants the revenues of companies owned by the federal government to contribute at least 25% to make it a public joint-stock company, this is part of the part.
The second part concerns public joint-stock companies, does the honorable Council wish to add them to the clause or not, and thank you.
Excellency the President:
“And the percentage of commitment, do you think it should be 2% or 5%?”
Honorable / Ahmed Abdullah Al-Amash:
“5%, Excellency the President.”
Excellency the President:
“Please, Counselor.”
Mr. / Dr. Hisham Mohamed Fawzi:
“Indeed, as Brother Ahmed said that government-owned companies may not be public and may be a special contribution or joint investment partner. Therefore, the most accurate thing is to say, ‘The commitment of companies owned by the federal government by no less than 25% of their capital to contract with projects and establishments in the state by no less than 5% of the total contracts to meet their purchasing, service, and advisory needs,’ and thank
