This study was designed to scrutinize the effect of Participation in setting objectives on the performance of employees working at Small and Medium Enterprises (SMEs) in Dubai in the United Arab Emirates (UAE). The study employed a Survey Descriptive research Design to garner data for the research project. It used a quantitative research approach guided by close ended questionnaires. The 402 sample-size was selected from 151,875 by a Table developed by Krejcie & Morgan (1970) and the study used as well convenient sampling technique to gather necessary information for the study. The researchers analyzed their data using Multiple Regression Analysis and T-tests to test the hypothesis. The findings revealed that there is significant effect between promoting joint participation in setting objectives and employees’ performance in Dubai in the UAE (β = 0.168, t = 2.584, p<0.05). The researchers concluded that the employees’ participation in setting objectives can be used effectively to improve employee performance in Dubai Small and Medium Enterprises (SMEs), mainly by setting specific objectives and providing continuous feedback for regular improvement at workplace. The researchers recommended that managers should focus on employees’ mutual involvement in implementation of organizational activities through respect of their opinions and supplying regular feedback. This may go a long way in encouraging the spirit of self-drivenism for growth and development of organizations. It was also recommended that mangers should continuously motivate their employees for improved performance in organizations in Dubai in the UAE. This can be done through prompt payment of the employees’ salaries, offering them scholarships for further training and recognition of the work they do on the daily basis. The academics further recommended that managers should sporadically organize seminars and workshops for employees to be able to improve on their knowledge and skills for the development of small and medium enterprises (SMEs) in Dubai in the UAE.