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Investors’ Confidence is Back to Dubai: Recent ‘New Business License’ Issuance Data Suggests

Investors’ Confidence is Back to Dubai: Recent ‘New Business License’ Issuance Data Suggests

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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.

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