Investors repose trust in Dubai economy as new licences surge 19% in Q1

Dubai has once again proved its economic resilience by regaining trust of investors as it recorded 19 per cent year-on-year growth in new trade licences during the first quarter of 2021, latest data shows.

The Business Registration & Licensing (BRL) sector of Dubai Economy reports that 15,475 new licenses have been issued during the January-March 2021 quarter compared to 13,027 licences issued in the same quarter last year, reflecting the resilience of the business environment of Dubai and the emirate’s economic competitiveness and ability to attract businesses to across various sectors.

Of the new licenses issued in the first quarter of 2021, 58 per cent were professional (8,935), followed by 41 per cent commercial activities (6,290), and the rest distributed among the tourism and industrial activities.

“Dubai has further strengthen its position as an international financial hub by posting strong double-digit growth in new licence issuance during the first quarter of this year. This number will further increase later this year with remarkable improvement in Covid situation across the region,” financial and entrepreneur Shailesh Dash told Khaleej Times on Monday.

In terms of distribution of the new licenses according to location, Bur Dubai accounts for the largest share (8,220), followed by Deira (7,236), and Hatta (19). The top sub-regions were Al Fahidi, Burj Khalifa, Al Khabaisi, Port Saeed, Trade Centre 1, Al Marar, Al Barsha 1, Naif, and Riggat Al Buteen.

“Dubai was among the few cities of the world that opened for business after the lockdowns last year due to effective policy measures and stimulus packages announced by the government to facilitate businesses. The emirate is an investor paradise and will continue to attract more investment and business as world is gradually returning to normal routine due to rapid roll out of Covid vaccination programme,” Dash said.

Atik Munshi, managing partner at Enterprise House, said the latest data just reflected successful actions taken by the government to handle a pandemic.

“Though the Covid pandemic hit the globe in March of last year, the negative impact of the same was experienced starting Q2 of 2020. Considering this background, the first quarter of 2020 was relatively a normal quarter and hence an increase of 19 per cent in issued licences in 2021 compared to the same quarter in the last year is a formidable achievement,” Munshi told Khaleej Times on Monday.

He said the firm political will and the progressive attitude of the government has instilled more confidence in the business and investor community.

“The highest number of vaccinations and economic reforms have left a mark and hence a better future for the UAE economy is expected, no wonder the entrepreneurs are mirroring this sentiment by creating more business ventures in UAE,” he said.

Business registration

During the first quarter of the year, 99,887 business registration and licensing transactions were completed, a growth of eight per cent compared to 92,325 in first quarter of 2020, demonstrating the vital role of Dubai Economy in delivering value-added services to the public in Dubai.

License Renewal accounted for 38,090 transactions during the first quarter of 2021, a four per cent growth compared to first quarter of 2020 (36,484). This underlines the benefits from the economic stimulus package launched by His Highness Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of the Executive Council, which allows renewal of commercial licenses without lease contract.

Auto renewal growth

Auto Renewal via text messages during the first quarter of 2021 accounted for 20,923, 16 per cent growth compared to first quarter of 2020 (18,061). The number of Trade Name Reservation was 17,397, Initial Approvals reached 13,914, and the total number of Commercial Permits was 3,077.

Dubai Economy highlighted the importance of collaborative work by the government and private sectors. The private sector supports economic development by launching competitive and value-added projects under the wise leadership of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai.

Investor can obtain any trade licence or launch a business in a matter of minutes through ‘Invest in Dubai,’ the first integrated digital business set-up platform, which simplifies the business journey without the need to visit service centres.

“The platform provides initial approval, reservation of a trade name, issuance of instant licences, Dubai SME licences, Intelaq licences, DED Trader licences, in addition to electronic Memorandum of Association, and the renewal of commercial licences,” according to Dubai Economy.

—muzaffarrizvi@khaleejtimes.com