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DCCI seeks BIA system

According to DCCI, the BIA is a cost effective system that will enhance the efficiency of regulating businesses in Dubai.

Cost minimisation through reduction of inefficient regulations improves business performance, while business friendly regulation allows for innovation and efficiency, according to DCCI.

The concept of imposing a high quality regulation system is relevant for businesses to perform at the lowest possible cost. For governments this will help to monitor these businesses at the lowest possible cost and to finally get social and economic benefits.

In order to improve the business environment, the European Union has introduced the instrument of Regulatory Impact Assessment (RIA). This prompted the DCCI to explore the relevance of a specific kind of RIA for Dubai's business community.

DCCI has recently conducted a pilot survey among enterprises representing a variety of sectors, sizes, legal status and years of existence. The survey's main aim was to evaluate the first impression of Dubai-based entrepreneurs regarding the emirate's business regulations and then make necessary recommendations on improving the business climate of Dubai and thereby introducing a possible BIA system to enable a cost-effective regulation.

Entrepreneurs were invited to react on several statements regarding compliance in general, compliance from the perspective of entrepreneurs, as well as the impact of regulation on business and the lack of regulation.

The results of the survey showed that more than 50 per cent of entrepreneurs agreed that it takes a lot of time and money to comply with regulations, while 35 per cent admitted that they do not agree with regulations or have limited knowledge about them.

The most beneficial regulations were those facilitating obtaining visas, allowing import, export and re-export at low tariffs and the free movement of capital.

The opinion on the lack of regulation focused on unfair competition. The majority of entrepreneurs think that it is difficult to compete with government organisations and companies operating out of free zones.

Unregulated price setting and inefficient regulation in acquiring business permits and licenses was also a major concern. As a result, about 65 per cent of the respondents favoured more government regulation and transparency to avoid unfair trade practices.