KHALEEJ TIMES, Sunday, Sep 19, 2021 | Safar 12, 1443
Dubai Economy issues 5,885 new licences in August
Emirates:
Dubai on Saturday proved its economic resilience by recording strong
growth in new licences in August as the investor sentiments pick up ahead of
Expo 2020 next month.
In a statement, Dubai Economy said it
issued 5,885 new licences last month compared to 3,829 in the same period last
year, reflecting a year-on-year growth of 54 per cent.
A recent report by the Business
Registration and Licensing sector of Dubai Economy said the figures reflect the
ease of doing business in the Emirate, the measures taken to ensure business
continuity and further simplify government procedures for businesses, thus
reinforcing Dubai’s status as a global hub and the world’s best place to live
and work.
Professionals are in demand
The Business Registration and
Licensing sector of Dubai Economy issued 3,473 new licences for professional
category in August [about 59 per cent of the total] while 2,378 licences [40 per
cent] awarded for commercial category and one per cent licences were given for
industrial activities in the emirate.
“This confirms the emirate’s
constant efforts to
provide a supportive environment and infrastructure for local and international
businesses,” according to Dubai Economy statement.
According to the main areas, Bur
Dubai accounted for the largest share (4,299) of the new licences issued
followed by Deira (1,577), and Hatta (9).
Saad Maniar, senior partner at Crowe,
said the business activities have picked up lately and it is only going to go up
as market conditions improve.
“Dubai is one of the most trusted
cities when it comes to saftey, security, life style and most importantly
business opportunities. Investors find it easy to set up business in Dubai and
enjoy a good lifestyle,” Maniar told Khaleej
Times.
Kamal Vachani, group director and
partner at Al Maya Group said 54 per cent year-on-year growth in new Dubai
business licences is a great news and further strengthen Dubai’s position as one
of the top destinations in the world for starting a new business.
“The Government of Dubai give special
attention to ease of doing business and that’s the key reason more and more
investors are willing to start a business in the Emirate. The Invest in Dubai
platform is another great initiative of the Dubai government to facilitate
investors at one place for all their needs and to complete the business
licencing process,” Vachani told Khaleej
Times.
“We are blessed to be living and
doing business in Dubai and the UAE. The ease of doing business in Dubai is the
best in the world,” he said.
Ease of doing business
Bal Krishen, chairman and CEO,
Century Financial, said ease of doing business in Dubai has certainly improved
in Dubai as part of various government initiatives and this has helped attract a
lot of businesses.
“In early 2021, the UAE government
announced its decision to allow 100 per cent foreign ownership of firms, as part
of a new visa system for international investors and talents. This has resulted
in the favour of expat business owners, who are now more than ever incentivised
to materialise their business models. Apart from that, the recently introduced
longer-term visas, the federal institutions have indirectly introduced legal
routes to attain UAE citizenship. Recent introductions include remote work visa,
golden visa and multi entry tourist visa,” Krishen told Khaleej
Times.
Morever, he said the UAE
administration has launched several new initiatives to foster a future-ready
entrepreneurial ecosystem. One such initiative, is the ‘Dubai Next’ crowdfunding
program that will decentralise venture capital, the platform has already hosted
543 campaigns, which are giving start-ups and ideas initiated by both Emirati
and international talent, the chance to launch their venture in the country.
Moreover, entrepreneurial hubs and incubators are already in motion.
“Also, the lack of direct income tax
on the resident of the UAE is a major advantage for any individual who ventures
to the country. This enables individuals to avoid the hassle of double taxation
and the effectivity of double taxation treaties between their country of
nationality and their country of work,” he said.
The UAE is ranked 16th globally in
the World Bank’s ‘Ease of Doing Business’ report 2020. Additionally, The UAE has
ranked 15th globally in Kearney’s 2021 Foreign Direct Investment (FDI)
Confidence Index, up from 19th place in 2020. The UAE is one of only five
countries globally that achieved a higher ranking this year in an increasingly
competitive global FDI attraction environment.
In the right direction
Nitin Agarwal, president, Hundred,
said the UAE and Dubai governments are doing everything right for attracting new
entrepreneurs into the city and country.
“Be it various initiatives on new
long-term visas, 100 per cent foreign ownership companies, the exposure that the
country is receiving due to the Expo and other initiatives by the government to
make it easy to establish a new business in Dubai and the UAE,” Agarwal told Khaleej
Times.
He said the UAE authorities have
handled Covid-19 in the best possible manner which has led to new inflow of
entrepreneurs from Asia and Europe relocating to Dubai, in order to take
advantage of the lifestyle here and friendly business environment.
“Dubai and UAE are also doing a lot
about digital transformation, and is one of the leading countries in the world
to adopt various digital initiatives. Smart apps are playing a big role in
Dubai’s position as a smart city, and accordingly we have chosen the UAE as the
first market to launch our super app Hundred Offers,” he said.
New Vision, initiatives
Ola Lind, director at FTFT Capital,
said it is clear that the new vision and initiatives launched is driving Dubai
towards becoming a knowledge economy.
“The new visas including golden and
green visas, strategic trade tie-ups like the Dubai Silk Road are attracting new
talent, investment and businesses,” he said.
“While Expo 2020 has certainly had a
role to play in the boom and 54 per cent growth in licences in August and over
the last few months, real estate also experienced a boost thanks to various
industries including the drive towards sustainability and initiatives such as
vertical farming, blockchain, green tech and cloud kitchens,” he said.
“Blockchain will play a bigger role
in Dubai’s position as a smart city and in its drive towards digital
transformation,” he added.
Dubai Economy plays key role
Dubai Economy strives to deliver
solutions that contribute to enhancing ease of doing business in the emirate and
expanding investment and growth, which drives sustainable economic growth. This
highlights Dubai Economy’s vital role in providing value-added services to
businesses in Dubai as well as strengthening the emirate’s economic
competitiveness, including its ability to provide businesses high-growth
opportunities in various economic sectors.
According to the legal forms of the
new licences issued in August 2021, the report showed that Sole Establishment
companies topped the list with 38 per cent, followed by Civil companies and
Limited Liability companies with 23.5 per cent each. The legal forms also
included one-person limited liability company; Branches of companies based in
other Emirates; Branches of Foreign Companies; and Branches of Free Zone
Companies.
Investors can obtain any trade
licence or launch a business in a matter of minutes through ‘Invest in Dubai,’
the first integrated digital business set-up platform, which simplifies the
business journey without the need to visit service centres.
The platform provides initial
approval, reservation of a trade name, issuance of instant licences, Dubai SME
licences, Intelaq licences, DED Trader licences, in addition to electronic
Memorandum of Association, and the renewal of commercial licences.