The United Arab Emirates is known as a country which encourages new businesses in the mainstream media and also in widely-followed surveys done to gauge competitiveness. Many steps and initiatives have been taken in recent months to turn Dubai and Abu Dhabi into places where doing any new business is easy and cost-effective and where people can start and run their own businesses without any hassles.
Openness for business
Recently, the UAE Cabinet announced a couple of major amendments.
1. Guidelines for Long-Term Residency Visas
As per the new visa regulation, 10-year residency visas will be offered to professionals and experts in medical, Science, research and other technical fields, and also for all innovators. It will also include a five-year residency visa for all the students living and studying in the UAE and it could be extended for up to 10 years for ‘exceptional students’.
2. 100% or Complete Foreign Business Ownership
This step was like a master stroke, which will give a push to the economy and also pull in more foreign investments. The announcement said that UAE will now allow global investors in some sectors to completely (100%) own their company by the end of this year.
As of now, the foreigners were permitted to own up to 100% of their enterprise by business set up in Dubai free zone or choosing one of the various Free Zones in the UAE; or else, the limit for foreign ownership in UAE was set at 49%.
This proves that the UAE government aims to remain as the global leader and also as the “business hub” for global investors, thus making company registration in Dubai attractive.
More Steps to Cut Down the Business Costs
Corporate Fines Slashed
In May end, the Dubai’s Department of Economic Development (“DED”) talked about Decree No. 20 of 2018, which gave exemption to various companies, which function in the Emirate, from paying the fines that were imposed on them, and which also helped in the renewal process of licenses. HE Sami Al Qamzi, who is the Director General of Dubai’s DED, said that [the Decree] will prove beneficial as it will increase the financial advantages of the business owners whose licenses have expired, restore the needed legal records and licenses, and assist the entrepreneurs in Dubai to improve their competitive edge.
It was further clarified that this waiver of the fines was applicable to fines issued before 14 April 2018. Companies, which have received fines since that time, can pay the pending amounts owing in installments by a special arrangement with the DED. The businesses were given a timeline till the end of this year for renewal of their licenses to run their business in Dubai.
Added Benefits
3 Year AED 50bn Stimulus Package
The Executive Committee of the Abu Dhabi Executive Council also spoke about a three-year AED50 billion (US$13,624 million) financial stimulus proposal.
The plans for the project, with a goal to support Abu Dhabi’s financial development by coming up with 10 major initiatives was announced. Some of these initiatives are detailed below:
- Abu Dhabi Office Space Exemption: All new enterprises, which register themselves in Abu Dhabi are exempt from the obligation of needing an office space here for up to two years.
- Boosting Development and Competitive Edge: Various new partnerships in public-private sectors in the Emirate of Abu Dhabi: The proposals marked for the 3Q18 also talk about motivating and organising local production and providing support to SMEs to enhance their competitive edge in domestic market, in addition to the issuance of dual licenses for enterprises in Abu Dhabi Free Zones to help them to operate outside of the free zones and to contribute in the government tenders.
- Instant Licences: In Q4 of 2018, the Executive Committee will come out with its plan for the execution of instant licensing systems in the category of commercial licenses and all services that the Government provides. This is in addition to the reassessment of the building guidelines for infrastructure, housing properties, commercial spaces and also industrial sectors, as well as the developmental needs and community facilities of other housing areas in Abu Dhabi, Al Ain and Al Dhafra.
