- Newsletter, Singapore
- December 13, 2021
An SGD180 million has been additionally planned on top of the already budgeted SGD 500 million committed for artificial intelligence (AI) research, informed Deputy Prime Minister, Heng Swee Keat while addressing at the Singapore Fintech Festival (SFF) and Singapore Week of Innovation and Technology (SWITCH) 2021.
On November 8, 2021, Mr Heng, in an opening speech announced that the SGD180 million would be only spent towards accelerating fundamental and translational research on AI. While fundamental research involves the advancement of new and novel applications for AI, translational research refers to its application in translating data into meaningful insights.
The Deputy Prime Minister of Singapore, the new silicon valley in Asia also announced that two new national programmes on AI would be initiated for the finance industry and government sector including the ‘National AI Programme in Finance’ and the ‘National AI Programme in Government’.
These two national programmes have been introduced as part of the Singapore government’s strategy to effectively utilize AI technology for economic and social good.
The first programme in Finance includes an industry-wide AI platform and will generate insights about financial risks. The second programme in Government will improve the delivery of public sector services through greater use of AI in planning and policymaking for providing more responsive and personalized services and optimizing governing processes for the benefit of the citizens.
The first programme, NovA! is an AI platform and in its initial phase will focus on helping financial institutions rightly evaluate the environmental impact of companies and identify associated environmental risks. This is a collaboration between Singapore-based banks and local fintech firms. Sustainability related investments and the risks involved can also be better assessed by the financial institutions with this initiative. Building solid and sound AI capabilities within the Singaporean financial sector and enhancing customer service, risk management and business competitiveness is the primary purpose of this initiative.
The second AI programme, besides improving the delivery of public sector services through AI text analytics, will also focus on exploiting AI technology to improve job-matching on the national jobs portal, MyCareersFuture and improve job placements through better and more effective use of personalized jobs and skills recommendations.
These nationwide programmes come as a strategic plan of the Government for large scale adoption of AI across the nation and position the country as a global platform for AI applications and testing. The new initiative aims to leverage AI technology for economic value creation and train Singapore’s workforce on AI technology know-how.
In its efforts to become a smart nation, the Singapore government emphasized the necessity of AI for resource identification and allocation for the key focus areas through increased collaboration between government agencies and researchers.
The national AI strategy has been developed by the Smart Nation and Digital Government Office (SNDGO), under the Prime Minister’s Office (PMO) to position Singapore in a global leadership position for the development and deployment of “scalable, impactful AI solutions’ in key areas by 2030.
The government spearheaded the national strategy to make its citizens aware of the implications and benefits of AI in their lives and promote usage of this technology. Developing AI capabilities has also been on the government’s agenda to support an AI-driven digital economy by 2030. Plans and priorities are made by SNDGO so that Singaporean entrepreneurs and engineers can develop new and innovative AI products and services for both indigenous usage and exports.
“Domestically, our private and public sectors will use AI decisively to generate economic gains and improve lives. Internationally, Singapore will be recognised as a global hub in innovating, piloting, test-bedding, deploying and scaling AI solutions for impact,” emphasized the SNDGO.
Four focus areas have been identified for increased AI deployment including finance, manufacturing, government and cybersecurity. The nationwide projects that have been earmarked are management in healthcare, intelligent freight planning in transportation and logistics, and border clearance operations in national safety and security.
“The national AI strategy is a key step in our smart nation journey. It spells out our plans to deepen our use of AI technologies to transform our economy, going beyond just adopting technology, to fundamentally rethinking business models and making deep changes to reap productivity gains and create new areas of growth,” noted Lee Hsien Loong, the Prime Minister of Singapore.
He also added saying, “As a small country, Singapore lacks the scale of large markets and R&D ecosystems, but we can make up for this by building up AI research, and working together cohesively across government, industry, and research, to develop and deploy AI solutions in key sectors,” Lee added. “At the same time, we must also anticipate the social challenges that AI will create by maintaining public trust and building capabilities to manage and govern AI technologies, and guarding against cybersecurity attacks and breaches to data privacy.”
The Monetary Authority of Singapore (MAS) has already developed the first phase of Veritas, an AI governance framework and Toolkit to ensure that financial institutions use AI responsibly. The framework will focus on three main areas including customer marketing, risk scoring, and fraud detection.
“AI has the potential to transform financial services, but it must be used safely and responsibly. Good governance is essential to AI adoption in the financial industry,” the special AI advisor for MAS David Hardoon emphasized.
As part of the national AI strategy and to develop and manage smart estates, Mr Heng also deliberated a new partnership between the Infocomm Media Development Authority (IMDA) and Singapore University of Technology and Design (SUTD) for enhancing AI technological capabilities.
The rollout of a national AI strategy will empower Singapore to emerge as one of the smartest nations in the world and increasingly attract foreign innovative and tech-savvy SMEs and startups for the best Singapore company incorporation.
- Newsletter, U.A.E
- December 13, 2021
The recently released data by the Dubai Department of Economy and Tourism revealed a 69% jump in the issuance of new business licences in the first 10 months of 2021 signifying the return of investors’ confidence back to Dubai.
As investors and entrepreneurs identify high growth momentum and future investment opportunities across different sectors, they look for instant licensing for Dubai company incorporation.
The UAE department of Economy and Tourism issues instant licenses to business persons who are willing to set up and operate their businesses on the same day after applying for a new business license in a single step simple and easy 5 minutes process through the online portal ‘Invest in Dubai’.
While 32,626 new business licenses were issued during October 2020, the same month in 2021 witnessed 55,194 licenses registering huge growth over one year period on the back of increased confidence and trust of Investors in the economic resilience of Dubai.
“The growth in the number of licences issued also reflects the strength of the economy, Dubai’s success in managing the impact of Covid-19, the government’s agility in amending economic policies to drive economic growth, the low cost of doing business, and the easy procedures for starting businesses, all of which contributed to enhancing investor confidence in Dubai’s diversified economy,” emphasized Dubai department of Economy and Tourism.
The growing number of businesses set up confirms that Dubai’s economy is back in action after the pandemic and started firing in all cylinders after the launch of the historic international trade fair of EXPO 2020.
IHS Markit Dubai Purchasing Managers’ (PMI) index showed last month that the non-oil economy maintained its growth momentum in October 2021 and clocked almost a V-shaped recovery after attaining the largest gain in two years. The demand environment has radically improved with a rebound in new orders and is also attributed to EXPO 2020 which have revived the tourism, realty and banking sector.
The e-commerce space witnessed high growth during the first two quarters where new licenses increased almost 63%, from 1989 last year to 3243 nos in the corresponding period this year. In August 2021, Dubai witnessed a more than 50% rise in the number of new licenses issued. As per the report, the professional category new business licenses remained the front runner with almost 59% share closely followed by the commercial category one at around 40%.
While companies in the sole proprietary category topped the list of new license legal forms with 38% share, limited liability companies and civil companies secured the 2nd and 3rd positions with 28% and 24% shares of legal forms respectively.
One-person LLCs, branches of companies based in other emirates, branches of foreign companies, branches of free zone companies, branches of GCC companies, general partnership companies, public shareholding companies and private joint-stock companies also opted for legal forms.
Fully completed registration and licensing transactions in the first 10 months increased by 17% year on year and transaction volume for renewal of licenses saw up by 3%. A huge increase was witnessed in the initial approval of new business licenses growing more than 40% in October 2021 on a year on year basis.
Dubai International Financial Centre (DIFC) and Dubai Multi Commodity Centre (DMCC) are the two flag bearers of Dubai’s recognition as one of the best financial hubs in the world and played the most pivotal role in bringing Dubai’s economy back in the high growth path after covid 19 pandemic.
DMCC has been recently awarded ‘Global Free Zone of The Year’ by Financial Times amongst 70 Free Zones across the world and 7th consecutive time in a row. As the economy gets back on track, more investors are likely to opt for a DMCC company formation and benefit from the world-class business facilities from this free zone.
DIFC opens up to all startups and SMEs with the DIFC Innovation License that serves as a springboard for young tech-savvy entrepreneurial minds for future disruptive businesses. With the recent announcement of ‘Supersonic Speed Technology’, DIFC will undoubtedly attract more young business talents who would be tempted for DIFC company formation.
- Newsletter, U.A.E
- December 13, 2021
The hosting of a first-of-its-kind business conference on Israeli technology and innovation in Jaffa, Tel Aviv on Wednesday 24 November by the UAE embassy in Israel marks the first state-sponsored business delegation from the UAE to Israel.
Government officials, business leaders and entrepreneurs were present at the conference and discussed the advancement of technology and innovation and promotion of business ties between the two countries.
The event came more than a year after the first anniversary of the U.S negotiated historic Abraham Peace Accords, signed on 13 August 2020 at the South Lawn of the White House in Washington between the UAE and Israel.
The event was held in partnership with the Israeli NGO Start-Up Nation Central, a not-for-profit organization that keeps a close tab on the technological ecosystem and the Ministry of Economy of Israel.
Start-Up Nation Central was founded in 2013 by philanthropy and a one-stop destination for governments, corporations and investors to connect with the Israeli tech ecosystem. It runs an online platform, Start-Up Nation Finder where one can identify potential Israeli technology companies based on one’s interest.
Around 200 dignitaries attended the summit and among them were members of a UAE state-sponsored business delegation led by the UAE Minister of State for Entrepreneurship and SMEs, Ahmad Belhoul Al Falasi and the Minister of State for Foreign Trade Thani Al Zeyoudi.
Mohamed Al Khaja, the UAE Ambassador to Israel initiated this conference earlier this year as the new delegation sought to collaborate on innovation and entrepreneurship ventures between the two countries.
The agenda of the conference revolved around technological innovation driven by multinational corporations, the creation of an innovative technological ecosystem and collaboration in achieving mutually beneficial economic progress.
The UAE Ambassador to Israel, Al Khaja said “As people of the region, in order to advance our own societies and our economies, it is imperative for all actors in this room, and our counterparts to find ways to ‘lean in’ to this relationship and work together to open doors and correctly navigate and fuse together the respective strengths of our societies and economies.”
“We are proud and excited to host Israeli startups, corporations and joint ventures aiming to capitalize on the language, cultural and global connections of the dynamic Emirati marketplace, and to allow you to tap into the diverse talent pool and global business acumen of the UAE,” he remarked.
The leader of the UAE envoy, Dr Al Falasi highlighted, “Everywhere I look I see alignments, both in our strengths and our challenges, when it comes to small and medium businesses, startups, and tourism. There are a lot of ways that we can work together and enable our respective businesses to expand from the UAE to Israel and the other way around.”
“It is truly remarkable how only a year after the Abraham Accords, we have already established strong relationships in the form of business and commercial agreements. This is more than simply a foundation to build on. It is a solid partnership of real significance, not just for our nations, but for the region and the world as a whole,” commented the UAE Minister of State for Foreign Trade.
Israel’s Minister of Economy and Industry Orna Barbivai welcomed the arrival of UAE delegates in Israel saying the visit “enables us to expose the visiting Emirati industry and business leaders to Israel’s wealth of innovation, technology, entrepreneurship, and research.”
After the conference, the UAE Minister of State for Entrepreneurship and SMEs and Minister of State for Foreign Trade also visited Start-Up Nation Central Headquarters to meet with entrepreneurs from leading technology companies of Israel and explore potential Israeli investors interested in company formation in Dubai.
The following day, 25 November, the UAE delegation team members held a series of one-to-one and group meetings with their Israeli equivalents.
The UAE believes that economic activity with Israel will exceed $1 trillion over the next decade and will open floodgates of business opportunities for the investors of both countries. In all likelihood, the Jebel Ali Free Zone (Jafza) in Dubai, one of the biggest trade hubs in the region will be a major beneficiary and a growing number of Israeli investors will look for Jafza company formation to utilize the developed facilities in Jafza which has entered into a “strategic agreement” with the Federation of Israeli Chambers of Commerce (FICC) to promote businesses and trade.
Israeli Central Bureau of Statistics (CBS) data revealed bilateral trade between Israel and the UAE between January and June 2021 was approximately USD 610 million and more than half of which were from diamonds.
The Dubai Multi Commodities Center Authority (DMCC), home to the Dubai Diamond Exchange has already started a representative office in Tel Aviv inside the Israel Diamond Exchange (IDE) to extend support to Israeli businesses, across all industries and sectors who are interested in setting up a presence in Dubai through a DMCC company formation.
- Bahrain, Newsletter, U.A.E
- December 12, 2021
The recently agreed MOUs reached between the UAE and Bahrain are intended to promote bilateral cooperation between the two countries in many important areas and pave the way for the effective realization of economic growth plans of both countries. A new executive programme has also been launched encompassing some key areas including investment and trade, higher education, teacher training and human resources.
The MOUs were signed during the official visit of His Royal Highness Prince Salman bin Hamad Al Khalifa, Crown Prince and Prime Minister of Bahrain to UAE in November 2021. Prince Salman met His Highness Sheikh Mohamed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces, during his visit.
HRH Prince Salman and HH Sheikh Mohammed were present during the signing of several agreements and MoUs including the new executive programme that spans over several areas such as climate change, higher education, teacher training, human resources, trade and investment, advanced technology, economic integration, food security, health care, artificial intelligence in oil and gas, transportation, technical support for upstream industries, cyber security, cyberspace technical cooperation, logistics, combating crime, and stock markets.
At the end of the visit, a joint statement was issued by the governments of the UAE and Bahrain wherein the two countries agreed to promote bilateral cooperation in key areas to attain mutual benefits and joint objectives of both countries. Each country agreed to encourage ministries and government authorities to cooperate and transform cooperation objectives into joint ventures.
Both the countries committed to addressing the pandemic and exchanging best practices and reinforcing scientific cooperation in medical research. Abdul Rahman bin Mohammed bin Nasser Al Owais, UAE Minister of Health and Prevention, and Faeqa bint Saeed AlSaleh, Bahraini Minister of Health, exchanged an MoU on health cooperation.
The two countries also committed to cooperating in employment, labour and localisation and exchange expertise and best practices in these areas. An MoU on labour and HRD was signed between Dr Abdulrahman Al Awar, UAE Minister of Human Resources and Emiratisation, and Jameel bin Mohammed Ali Humaidan, Bahraini Minister of Labour and Social Development.
An MOU on Cybersecurity Cooperation was exchanged between Mohamed Hamad Ak Kuwaiti, the Head of Cybersecurity of the UAE government and Sheikh Salman bin Mohammed Al Khalifa, CEO of National Cybersecurity Strategy of Bahrain.
The two countries agreed to work jointly to address the burning issue of climate change and an MoU on climate change and environmental cooperation were exchanged by Dr Sultan bin Ahmed Al Jaber, UAE Minister of Industry and Advanced Technology and UAE Special Envoy for Climate Change, and Dr Mohammed Mubarak bin Dainah, Chief Executive Officer of the Supreme Council for Environment of Bahrain.
Technological advancement was also on the agenda of two countries and an MoU on industry and advanced technology was exchanged between Dr Sultan bin Ahmed Al Jaber, UAE Minister of Industry and Advanced Technology, and Zayed bin Rashid AlZayani, Bahraini Minister of Industry, Commerce and Tourism.
Two MoUs, one each on higher education and executive programme for cooperation in education for three years; 2021, 2022 and 2023 were exchanged between Sarah bint Yousif Al Amiri, UAE Minister of State for Advanced Technology, and Abdullatif bin Rashid Al Zayani, Minister of Foreign Affairs of Bahrain.
The two countries agreed on cooperation in trade and investment and an MoU was signed between Abdullah bin Touq Al Marri, UAE Minister of Economy and Zayed bin Rashid AlZayani, Bahraini Minister of Industry, Commerce and Tourism. Advancing the tourism industry was also the focus of both countries.
To recognize UAE as a partner in Bahrain Global Sea-Air Logistics Hub, an MoU was exchanged between Dr Thani bin Ahmed Al Zeyoudi, UAE Minister of State for Foreign Trade, and Zayed bin Rashid AlZayani, Bahraini Minister of Industry, Commerce and Tourism to restore the aviation sector to the pre-pandemic level.
An MoU was reached between Abu Dhabi National Oil Company (ADNOC) and Gas Holding Company of Bahrain. Dr Sultan bin Ahmed Al Jaber, Minister of Industry and Advanced Technology and Managing Director and Group CEO of ADNOC, and Dr Mohammed Mubarak bin Dinah, Chief Executive Officer of the Supreme Council for Environment of Bahrain, also exchanged an MoU between Adnoc and Tatweer Petroleum.
UAE Minister of Energy and Infrastructure, Suhail bin Mohammed Al Mazrouei, and Kamal bin Ahmed Mohammed, Bahraini Minister of Transportation and Telecommunications, signed an MoU on transportation and communications.
An MoU was signed between Abu Dhabi Securities Exchange (ADX) and Bahrain Bourse and was represented by Saeed Hamad Al Dhaheri, ADX CEO, and Khalifa Ibrahim Al Khalifa, CEO of Bahrain Bourse.
Export promotion has already been an area of cooperation between the two countries as Export Bahrain and Dubai Industries and Exports signed an agreement in October 2021 to support Bahraini investors exploring the UAE market and Dubai company incorporation.
It was agreed that relevant national organisations from both countries will reinforce their economic ties. A centre will be established for UAE nationals looking for a company formation in Bahrain that would connect commercial registries in the two countries.
The Crown Princes of both the countries expressed their common and sincere desire to support bilateral relations moving forward for mutual development and progress of the two countries and contribute to building a prosperous future for their citizens.
- Newsletter, Saudi Arabia, U.A.E
- December 12, 2021
The GCC’s physical retail infrastructure has become highly developed and so has the consumer’s familiarity with online shopping portals. The two biggest economies in the Arab world, the UAE and Saudi Arabia, would contribute more than 75 percent of sales over the next five years, a forecast revealed.
An increase in per capita GDP along with population growth will be primarily responsible for the high growth rate. Tech-savvy young generations and higher consumer awareness are also facilitating a boost in the retail sector market and help these two countries to diversify their economies in the non-oil sector. As the tourism sector opens up, the retail sector will see further growth in revenues.
As the economy of UAE grows at a faster pace compared to its other GCC peers due to sound government policies such as easing of visa restrictions and renewed infrastructural spendings and economic stimulus packages, UAE is expected to lead the retail sector growth in the GCC. The yearly growth in retail sales is projected between 2.2 per cent to 5.1 per cent in the GCC in the next four to five years.
E-commerce in the UAE is also witnessing staggering growth and becoming the fastest-growing economic sector in the entire Middle East region on the back of improved digital connectivity, better infrastructure and substantial growth in demand in apparel, white goods and consumer electronics sectors. The recent Amazon annual White Friday Sales in UAE with a huge discount of 70 per cent bears testimony to how popular the e-commerce market is becoming in this country.
The Riyadh Chamber of Commerce also reported recently that the e-commerce sector in the Kingdom is growing at a faster pace and the transaction volume in the sector hit SR21.375 billion last year.
The statistics available with the Saudi Ministry of Commerce revealed that in comparison with 2019, there has been an increase in the number of licensed online stores in 2020 by almost 14 per cent. The online stores also registered an all-time high commercial record of 28,676. Electronic platforms have also registered considerable growth in recent times. While e-commerce in the UAE is 4.2 per cent of total retail, in KSA it is around 3.8 per cent.
The social restrictions imposed by the governments to mitigate the coronavirus pandemic has resulted in an increase in online spending in the GCC. The e-commerce space in the region is witnessing an annual growth rate of 25% and will touch USD 28.5 billion in 2022, a high-level official of Amazon commented.
Big e-commerce companies such as Amazon and JD.com have already decided to expand their operations in the KSA. Many GCC startups are also showing interest in company formation in Saudi Arabia for providing localized solutions and gaining access to the relatively nascent but fast-expanding market in the country.
To address its expansion strategy of doing business in Saudi Arabia, Amazon recently embarked on opening five new delivery stations in Saudi Arabia including cities of Jeddah, Mecca, Abha, and Dammam with a 36,000 sqm floor area in total.
There is an immense potential for employment generation in the e-commerce sector and the logistics and delivery service areas greatly promoting the economic environment in the GCC. As technology helps humans reach millions of products online sitting at the comfort of their homes, online retail both globally and in the GCC are all expected to grow leaps and bounds soon.
- Newsletter, U.A.E
- December 12, 2021
The UAE/ Dubai economy has started displaying signs of growth in key economic indicators after recovery from economic fallout and GDP contraction due to covid 19. International financial institutions e.g. the World Bank and IMF also sounded upbeat on the prospects of the country’s economy being on strong footing. “Over the medium term, the recovery will be bolstered by trade and tourism as health concerns wane and the authorities continue to work towards UAE’s long-run priority — diversification,” reported the World Bank in a recent update.
The country’s GDP will average 3.4 per cent between 2021 and 2023 with 2.7 per cent GDP for 2021, 4.6 per cent for 2022 and 2.9 per cent for 2023, the World Bank’s projection suggests.
During the covid pandemic, the government approved 33 initiatives during August 2020 to support various sectors over three planned phases. The first phase of the recovery and economic advancement plan for providing immediate support to businesses has already been completed.
In August last year, Sheikh Mohammed bin Rashid, Vice President and Ruler of Dubai, in a Cabinet meeting approved the launch of the 33 initiatives to support various economic sectors. It also approved the formation of an interim committee was also formed to oversee measures for successful implementation of the 33 initiatives, creating stimulus for business and enhancing economic growth rates. Emerging business sectors will be provided with new opportunities for a resilient and sustainable future through the latest technologies and increased investments.
The committee is engaged in providing new opportunities by developing emerging sectors, harnessing technology, boosting investment in new sectors and enhancing the sustainability and resilience of the national economy. To this effect, the UAE Central Bank already announced a USD 27.2 billion package towards financing businesses.
Since the time of the deadly virus spread, Dubai- UAE authorities have introduced several post covid recovery plans and initiatives for speedy economic recovery and growth.
The government has been restructured with some federal entities merged into one and new ministers and CEOs appointed for specialized areas. The Ministry of Industry and Advanced Technology has been formed to specifically look after the industrial sector and a new Minister of State for Digital Economy and AI has been included in the cabinet. The UAE Government strategized and planned for all government services to be accessible from anywhere, any time by the year 2023 and appointed a Head of the UAE Digital Government for a digital transformation of the country.
A National COVID-19 Crisis Recovery Committee was also formed with several ministerial representations to steer the economic recovery post the pandemic.
A 10-year plan, ” Operation 300bn” has been launched to promote the industrial sector and provide all necessary support to 13,500 SMEs and generate 25,000 job opportunities. Easy and affordable financing to the priority sectors, SMEs and Startups including new business setup in Dubai has been kept on the top of the country’s economic growth strategy.
A new ‘Export Development Policy’ has been introduced to boost exports and explore new international markets for increasing the contribution of non-oil sectors in the GDP.
A Creative Economy Strategy has been planned to increase the contribution of creative industries to its GDP by two-fold, from 2.6 per cent in 2020 to 5 per cent by 2025. The country also implemented a strategy to attract and retain talents to lure foreign investments and company formation in Dubai.
As economic recovery and growth of a country is always intertwined with several other factors, six main areas have always been in the country’s focus including health, education, economy, food security, society and government restructuring.
While Europe and many other nations have witnessed a covid resurgence, the Dubai-UAE is relatively free of covid infection with 90 per cent population double vaccinated and high-risk categories provided with booster dose.
Lastly, the Dubai Expo, the booming realty sector and stable and higher oil prices have also helped Dubai- UAE to take its economy on a high growth trajectory.
- Article, U.A.E
- November 29, 2021
In a residency policy reform, the United Arab Emirates recently announced an easing of residency rules for expatriates and issuance of green visas to overhaul its economy and attract foreign talents. Now the country allows expatriates to reunite with their families who possess valid residency visas by allowing parents and relaxing the age limit of children.
What are the Sponsorship Requirements?
Residency visa holders need to obtain approval from either the General Directorate of Residency and Foreigners Affairs (GDRFA) if visas are issued in Dubai or the Federal Authority of Identity and Citizenship (FAIC) for visas issued in other Emirates.
Foreign expatriates with a valid residency permit can now sponsor their families regardless of their job titles if they earn a minimum salary of AED 4,000 or AED 3,000 plus accommodation. Medical fitness examination clearance is mandatory for everyone more than18 years old.
Type of profession as criteria of sponsoring immediate family members of expatriate residents was abolished in March 2019 and the income criteria were introduced. Now Expatriate husbands employed in the UAE can sponsor their immediate family members including their wife and children, subject to conditions that include a minimum salary of AED 4,000 or AED 3,000 plus accommodation regardless of the type of profession.
Once a UAE resident father fulfils the conditions for sponsoring his children, the mother can sponsor them.
After the arrival of family members in the UAE and modifying their entry permit to residence permit, a resident has 60 days to apply for sponsoring the residence visas of immediate dependents.
Visas for family members are issued for a one, two or three years period based on the employment contract and capacity of employment as an employee or employer.
Normally one or two years visa validity applies to expatriate employees while an employer is issued a residency visa for three years.
The residence visa for parents and male children above 25 years of age is granted yearly and is independent of the visa duration of the sponsor.
The requirements change as the residency policy of the UAE government changes and can be tracked from the GDRFA or the FACI websites.
What is a medical fitness requirement?
Both male and female family members above 18 years of age must undergo and clear the medical fitness tests at government-approved medical health and fitness centres in the UAE for the grant and renewal of residence visas.
Regardless of first-time issuance or renewal of visa, every applicant must undergo medical examinations for two communicable diseases including a blood test for HIV and chest x-ray for pulmonary tuberculosis.
Persons found to be HIV positive or infected with tuberculosis will be considered medically unfit and residence visas shall not be granted and immediate deportation will then be done by government authorities.
Dormant or inactive tuberculosis once diagnosed makes the residents liable to be declared medically unfit. They are granted a ‘Health Fitness Certificate for Residence’ for one year subject to medical treatment and follow-up by the Department of Preventive Medicine or equivalent health and fitness authority approved by the government. There are many health and fitness centres in Dubai, Abu Dhabi and Sharjah that have several medical fitness centres and can be conveniently reached for fixing an appointment.
How can I Sponsor my wife and children in Dubai-UAE?
As an expatriate resident, you can sponsor the residence visa for your wife and children only when you satisfactorily meet all the above-mentioned sponsorship requirements set by the GDRFA.
Sponsoring your wife will need you, as an expatriate resident, to prove that a marital relationship exists by submitting an authenticated marriage certificate in the Arabic language online or along with the typed application form. A certified translator can also translate the marriage certificate into Arabic.
What are the Documents required to sponsor a wife and children?
The same set of documents that you submitted for the entry permit is required while sponsoring your wife and children and include the following
- Passport copies of the wife and children
- Coloured photographs of the wife and children
- Medical clearance certificate for the wife and children above 18 years of age
- Copy of the husband’s employment contract or company contract
- A salary certificate from the employer stating the monthly salary
- Legalised marriage certificate
- Registered tenancy contract
- Latest utility bill
- Entry Permits
- Bank Statements
What is the Validity and Renewal Procedure of residence visas of family members?
The type of sponsor dictates the duration of residence visa and is issued for one, or two or three years. The renewal of a resident visa is subject to the same conditions applicable for fresh visas.
As the residence permits of family members and the resident sponsor are interlinked, any cancellation of the resident visa of the sponsor automatically cancels the visas of the dependents.
In such cases, a grace period of 30 days from the date of expiry or cancellation of their visa is allowed for obtaining a new residence permit. In case the sponsor cannot renew or cancel the visa of the family members, the dependents are not considered legal residents and would be fined.
Takeaway
The residence visa approval and issuance is a time-consuming process with many legalities involved. Secondly, the approvals are granted on a case to case basis and don’t always guarantee visa approval. It is highly recommended that you hire the best PRO services in Dubai for application submission, medical appointments and legal consultancies for facilitating the visa approval process.
- Bahrain, Newsletter
- November 24, 2021
Bahrain, the smallest amongst the six GCC countries including Saudi Arabia, UAE, Oman, Qatar and Kuwait has announced during the last week of September 2021 to increase the VAT rate to 10% from the prevailing rate of 5% effective from 1st January 2022.
Sheikh Salman bin Khalifa Al Khalifa, the Finance and Economy Minister said in an official briefing “The Kingdom is emerging from the pandemic with reasons to be highly optimistic and the plan announced today aims to turbocharge the recovery.”
The Council of Ministers in Bahrain has approved the VAT rate hike to re-stabilise the Fiscal Balance Programme initiated during the end of 2018 however severely impacted by Covid 19.
VAT is a consumption tax and ultimately, the consumers bear the cost increase due to VAT rate hike. It is largely believed that the zero-rate would continue on essential supplies including basic food, healthcare, education, the oil and gas sector, the construction of new buildings, local and international transport. Metals and reality sectors are also expected to be out of this new tax structure and certain financial services might also enjoy an exemption.
What needs to be addressed by the Businesses in Bahrain?
Like every tax rate increase, the VAT rate hike shall also have implications on businesses who should first assess the impacts of the tax raise from their operational perspective considering both internal processes & systems and then critically review the legal requirements about charging of VAT and reporting the right amount of tax due to the National Bureau of Revenue (NBR), Bahrain.
As the recent pandemic has posed serious cash flow challenges to all businesses the world over making it difficult to get going, the businesses in Bahrain need to have sound and strategic plans in place to optimize the working capital cycles. Due to the difference in timing between the payment and recovery of VAT, the rate hike will have an impact on cash flow.
Concrete planning must also be in place for the smooth transition to the higher tax regime approximately in a month. Simply changing the VAT rate from 5% to 10% in their ERP systems would not suffice and all transitional provisions must be assessed with utmost care for every individual contract. It needs to be ascertained if contracts with customers and suppliers extend beyond 1st January 2022 and if any special VAT rules and regulations apply to them.
What needs to be the focus areas for Bahrain businesses?
Businesses need to focus upon a number of crucial areas including
- Getting ready for Increased Audit frequency from NBR as the rate hike becomes the most crucial source of revenue for the government
- Being aware of Increased compliance requirements as two-time penalties may be imposed on the tax due amount because of the higher tax rate
- Correct understanding of transitional rules, especially for businesses involved in continuous and periodic supplies of goods and services and upgrading of IT Systems with automation
- Strategic planning Cash flow in terms of VAT being due before payment is received from creditors. The cash flow impact may be higher for businesses in a constant refund position such as certain exporters.
- Identifying needs to modify terms and conditions of existing contracts with suppliers and customers.
How can IMC help?
IMC is a cross border corporate service provider with a local presence in Bahrain and comes with extensive experience in VAT implementation and compliance systems. We successfully handled a smooth transition to a higher VAT regime in different businesses sectors in the UAE and Saudi Arabia.
We have a team of experts with proven experience in VAT-related challenges and how to mitigate them.
We are keenly monitoring all developments in this regard and looking for additional information on the rate increase and transitional rules.
As the time is limited, we strongly suggest that taxpayers must immediately start a 360-degree analysis on the potential impacts of the increased VAT rate on their operations, supply chain, invoices and contracts, cash flow, internal audit schedule and IT infrastructure.
- Article, U.A.E
- November 15, 2021
Overview
UAE has emerged as one of the most attractive business destinations in the world and provides access to billions of consumers in West Asia, Eastern Europe, Africa and neighbouring Middle Eastern countries. It has high per capita income and offers world-class infrastructural amenities, well developed legal framework, zero corporate taxation, full repatriation of profits and friendly visa policies to its growing business and trading communities. The government has announced many immediate and long term initiatives such as Vision 2021 to promote business, investment and trade in the country. UAE however mandates that entrepreneurs and companies obtain necessary trade licences to carry out businesses in the emirate legally.
Considered as the business hub in UAE, Dubai is at the top of all seven emirates in attracting startups for new Dubai company formation and ranks amongst the top cities in the world in Consumer Confidence Index (CCI). The Department of Economic Development (DED) issues all business licenses in Dubai.
Why do you need Business Licenses in Dubai?
Licenses issued by the DED assure the customers that the business is legitimate and comply with all the applicable local laws.
Any new business in Dubai requires an appropriate license that ensures proper business establishment for the long term. Business types, company structure and jurisdiction dictate the type of license you should go for and the rules and regulations applicable to your business.
What are the decisions to be taken for obtaining a Business License in Dubai?
Obtaining a business license in Dubai is simple and before you apply for a business license, you need to decide on the following
- Type of business
- Name of your business
- Business activities
- The legal structure of the business
- Office Space Requirement
- Investment Requirement
What are the Most Common Business Licenses in Dubai?
Following are the main five types of business licenses that are issued by the DED, Dubai.
01. Industrial trade licence
Businesses engaged in industrial or manufacturing-based activities need an industrial trade licence to operate. This licence is issued by the DED and often need additional approvals from the Ministry of Finance, the Ministry of Energy and Infrastructure and other government authorities based on the scope of the business activities.
02. Professional trade licence
Business entities or individuals willing to provide professional services to their clients need to obtain a professional license from the DED for getting authorised for their services.
A professional license ensures that the business or individual is credible and qualified enough to provide services in a certain field or profession. Displaying certain training and skills are mandatory for such licenses. Every specialist, consultant, craftsman and artisan needs a professional trade licence for a business set up in Dubai.
A professional license allows many different business structures to be established in Dubai such as a Limited Liability Company, a Civil Company, a sole establishment fully owned by a foreign investor etc.
03. Commercial trade licence
A company engaged in sell and purchase of goods and commodities, or any other kind of trading activity needs a commercial trade licence to operate in Dubai and the UAE. A limited liability company (LLC) or sole establishment can be formed with this license and besides normal training activities, specialised trading can also be carried out with this license.
Various types of commercial trade licences are available in Dubai that will enable you to carry out trading activities specific to your business. Applying for the right type of license is critical.
Retail, construction, public transports, real estate, communication & broadcast and healthcare businesses must also possess a commercial trade licence to operate in Dubai.
04. Tourism Trade License
Dubai is ideal for setting up a tourism business as millions of global tourists and travellers flock to this city every year lured by its beautiful beaches and splendid architecture.
Businesses such as hotels, restaurants, car rentals and travel agents require a valid Tourism License for running their businesses in Dubai and need to get their businesses registered with the DED and department of Tourism and commerce. Some licenses are on offer in the city and can be applied for by investors interested in doing tourism business.
The Department of Tourism and Commerce Marketing (DTCM) issues the tourism and travel license in Dubai and based on the services rendered, three types of licenses are issued namely ‘Inbound tour operator license’ for handling tourists within the city,
‘Outbound tourist license’ enabling businesses to sell tourist packages outside of Dubai-UAE and ‘Travel agent license’ allows businesses to carry out ticket, car, hotel booking services etc. for the clients.
The business owner needs to provide proof of no criminal record and must obtain NOC from the Civil Aviation Authority. The bank guarantee requirement has also long been abolished by DTCM for promoting the tourism business in Dubai.
05. Freelance Trade Permit
Recently all the emirates including Dubai are witnessing a revolutionising trend as more and more businesses and individuals are considering freelancing as a cost-effective alternative to conventional employment. Earlier freelancing was not a viable and preferred career choice due to visa regulations, tight licensing and high cost.
The policy reforms rolled out by the UAE government has made freelancing legal and the government is issuing visas for allowing people to work as freelancers.
The huge benefits of freelancing enabling sourcing of cost-effective, flexible, easily accessible, high-quality talents have been widely recognized by businesses in Dubai and freelancers are increasingly becoming an attractive option as both time and cost of hiring permanent staff are eliminated. You need a residence visa and work permit to work as a freelancer in Dubai and the requirements for residents and non-residents vary.
For UAE residents sponsored by the spouse or parent, a freelancer permit is only required to start working. If you are Full-time working professionals in Dubai and UAE, you can become a freelancer by acquiring a permit.
A freelance permit needs proof of your relevant skillset and seeking permission from your employer is also mandatory if you are looking at freelancing as a side job.
As non-residents, you must apply for a freelancer visa and a residency permit to enable you to work in Dubai as a freelancer.
How can IMC help you?
IMC, founded in 1979 is a cross border corporate advisory and services firm with a strong presence in Dubai and has a team of experienced professionals believing in the “Customer First” philosophy. We can provide you with unmatched and affordable support services for obtaining the most appropriate license for your business.
What is the frequency and process of Renewals for Dubai Business Licenses?
The business licenses in Dubai need to be renewed every year and require authorization letters from concerned government authorities before application of renewal. While a drug manufacturer needs authorization from the Health Ministry, a public transport provider needs authorization from the Road and Transport Ministry. Once authorization is obtained, you need to submit all required documents along with tenancy documents valid for more than three months from the date of application.
- Newsletter, U.A.E
- November 9, 2021
Dubai Expo 2020 being in full throttle and pandemic restrictions tapering off, Dubai gets back to business with renewed vigour, and enthusiasm. The overall sentiment and outlook markedly improved and business confidence hit a multi-year high as companies in the emirate witnessed a significantly improved business ambience before the start of the nation’s biggest event, Dubai Expo 2020.
While the entire world was grappling with the coronavirus pandemic, Dubai and UAE government authorities remained firm in their resolve and never took their eyes off the immediate needs of economic stimulus packages and wide-scale vaccination. Dubai recovered at a spectacular pace just before the inaugural ceremony of the country’s greatest event and started inviting the world for a new business setup in Dubai with its zeal and dynamism like before.
Dubai Chamber of Commerce and Industry in its July 2021 survey reported a high level of optimism amongst firms about future business activities in more than a year. ‘Business confidence in Dubai reached its third-highest level in 10 years as companies in the emirate begin to feel the positive impact of Expo 2020 Dubai’ the survey reported.
While 76% of respondents surveyed expected improved business confidence in the fourth quarter of 2021, 66% believed it to be in the third quarter and 48% in the second quarter of 2021, the quarterly Business Leaders’ Outlook Survey revealed.
All contributing factors towards improved expectations of business conditions showed positive bias in Q3 compared to Q2 2021 and mainly due to exceptional rise was seen in financial transactions.
Major factors for high levels of confidence and positive attitudes amongst business leaders were cited as proactive approaches of the government, growing domestic demand, economic stimulus and vaccination drives. As per the survey findings, the SMEs were more optimistic about the economic recovery of Dubai compared to big business houses.
Increase in input buying and inventories helped raise the purchasing activity at the fastest rate. “Expansions were also recorded in purchasing activity and inventories during August. Delivery times, meanwhile, lengthened for the seventh consecutive month, although the downturn was only marginal,” IHS Markit reported.
Most companies in Dubai also started hiring more employees and employment levels started growing at the fastest pace since November 2019. Many firms expanded their staff capacity expecting higher spending and growth that led to the highest rise in job creation.
In his comments on the survey findings, Hamad Buamim, President and CEO of Dubai Chamber remarked said, “The findings demonstrate Dubai’s success in minimising the impact of the COVID-19 pandemic through a series of policies, initiatives and measures that have ensured a favourable business environment and addressed new challenges created by the pandemic.”
He also emphasised, “Dubai Expo 2020 is expected to fast track Dubai’s economic recovery and boost the emirate’s appeal among foreign companies and investors.” As per him, various sectors including trade, tourism, hospitality and logistics are likely to see the most business activity during Expo.
The non-oil private sector registered the highest level of growth in business after being subdued for nearly two years. Businesses soared to record highs for the construction companies and travel and tourism sectors as the economy bounces back due to the recent boom in reality due to huge capital infusion and relaxation in travel. The seasonally adjusted PMI data of IHS Markit, covering services and manufacturing activities rose to more than 50 levels, 53.3 in September and 55.7 in October signifying reasonable economic expansion.
David Owen, an economist at IHS Markit remarked, “The Expo 2020 finally began in the UAE at the start of October and brought a highly welcome upsurge in growth across the non-oil private sector.”
A remarkable surge in business activities was also noticed in the aviation and hospitality sectors primarily driven by fewer travel restrictions and Dubai Expo. The hotels in Dubai recorded the highest level of occupancy in recent times.
The World Bank’s latest forecast on the UAE suggests that the country would grow 4.6% next year as many tourists visit the country for the Expo. The traditionally strong sectors of UAE including Trade tourism, hospitality and logistics are expected to see the most activity during the next six months.
Dubai is on the go with a positive sentiment and rising confidence. The economy looks bright and shining. Over the coming years, it promises to be more attractive to the global entrepreneurs and investors offering greater opportunities for Dubai company incorporation
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