Dubai again proves its economic resilience

Dubai has once again proved its economic resilience by registering a strong 63 per cent year-on-year growth in trader licences during the first half of this year despite challenging environment across the globe.

Dubai Economy on Saturday announced that it issued 3,243 trader licences during the January-June 2021 compared to 1,989 licences in the same period last year. It issued 13,430 licences since March 2017 till end if June 2021, reflecting the department’s support to e-commerce in the emirate.

Atik Munshi, managing partner at Enterprise House, said the traders licence concept has been well received by the start ups and small businesses who are desirous to venture into the Dubai market.

“An easy setup process coupled with low overhead costs have encouraged many start up entrepreneurs to test their business idea without having a large risk exposure. The 63 per cent growth in the number of licenses issued is a marked improvement compared to the previous first half. This is a testimonial from SME business owners showing their trust in the local economy. Dubai government has always been proactive in supporting local businesses and Traders license initiative has fared well too,” Munshi told Khaleej Times on Saturday.

The DED Trader licence, launched by the Business Registration and Licensing (BRL) sector of Dubai Economy, provides help to freelancers and start-ups to conduct business activities online and across social networking accounts. It also reflects the focus of Dubai Economy on promoting e-commerce and economic competitiveness, as well as its commitment to realising the vision of the government to drive digital transformation and promote e-platforms that facilitate commercial activities.

The report issued by the BRL sector showed that males accounted for the highest share (63 per cent) of the total DED Trader licences issued during the first half. It showed that Information Technology topped the list of activities of the licences issued followed by readymade garments, ladies tailoring and design, handicraft workshops, gents tailoring and design, preparation of food, commercial brokerage, exhibitions and other professional services.

Saad Maniar, senior partner at Crowe, said low startup cost drives innovation and entrepreneurship across the globe."Dubai having such programmes show it commitment to contribute towards growth of the economy. However, one has to be mindful of the price war, as such thing could pose a threat to business continuity for the established businesses," Maniar told Khaleej Times on Saturday.

The DED Trader can be obtained electronically on the invest.dubai.ae portal by following simple steps. Through DED Trader, Dubai Economy seeks to regulate and enhance the ease of doing business electronically, while also offering a platform that supports and develops trade as well as connects customers with traders. The licensee cannot open a shop/store but can avail of three visas if the ownership is 100 per cent Emirati and legal liability falls on the licence holder

Dubai Economy focuses on providing support to the DED Trader licence holders by signing partnerships with government and private sectors, providing facilities for their business growth as well as opening new channels by enhancing cooperation with major sales outlets.

Dubai Economy partnered with noon.com, the region’s leading homegrown digital marketplace, to connect local startups with customers across the region through its Mahali digital store.

Mahali by noon.com is a programme designed to offer Emirati startups with digital business support and expertise, enabling them to grow their businesses online.

Dubai Economy has also partnered with MyFatoorah to facilitate e-payments for transactions related to DED Trader licences; talabat to display and sell food items through its platform, and with ‘Akshaak’ to display and sell products of DED Trader licence holders online for free.

The benefits of getting a DED Trader licence include membership in Dubai Chamber for commercial activities, bank facilities; Customs Client Code for import and export via dubaitrade.ae; temporary employment services; participation in exhibitions & conferences and training workshop; displaying of products in consumer points of sale, and providing work space.

--- muzaffarrizvi@khaleejtimes.com