Starting a small business in UAE is too costly: FNC member

Abu Dhabi - "Various high licencing fees are demotivating more Emiratis from investing."

"New hefty fees" imposed to obtain business licences are only discouraging people from starting their own venture in the UAE, Federal National Council (FNC) heard on Tuesday.

FNC member, Salem Al Shehhi, raised a question to Sultan bin Saeed Al Mansoori, the Minister of Economy about the high costs in obtaining licences to start small businesses.

"One of the challenges that prevents people from engaging in economic activities and businesses, is the rise in the prices of federal fees related to licences."

"What is the reason for these sudden hike in fees and why should it cost so much for someone to even open-up a small cafeteria?" He asked.

Al Shehhi said the Ministry needs to address the challenges related to the increase in fees, adding that there is a need for a federal umbrella or body to coordinate with local councils.

"This issue should be raised at a higher level with various stakeholders," he pointed out.

The Minister added there are discrepancies in fees across the emirates.

He stressed that authorities aim to encourage Emiratis to start economic activities and will thus look into decreasing the new fees.

The Council adopted a recommendation on a coordination between various local and federal entities to determine the fees required to issue economic licences, which benefits both merchant and consumer.

After the FNC hearing, Al Shehhi told Khaleej Times that more people are now complaining about the high fees imposed on obtaining economic licences.

He said if an Emirati wants to open a small cafeteria, he must pay licencing fees to up to 11 different local and federal authorities.

Al Shehhi stressed that the high fees are demotivating more Emiratis from investing.

"An Emirati man wants to start a small project, but the various high fees, which differ from emirate to emirate, is only discouraging them."

"We want to motivate Emiratis to join the private sector - so why shouldn't they at least be exempted from paying these fees, until they can stand up on their own feet?"

jasmine@khaleejtimes.com

• Abu Dhabi