Dubai records uptick in investor confidence
Data provided by the Business Registration and Licensing sector at Dubai’s Department of Economy and Tourism revealed that 55,194 new business licences were issued during the first 10 months of 2021
The upswing in new licence issuance reflects the strength of the economy and Dubai’s success in managing the impact of Covid-19. — File photo
The number of commercial licences issued in Dubai jumped year-on-year 69 per cent in the first 10 months of 2021, underscoring the surging investor confidence in the emirate’s resilient business landscape and the growth opportunities its diversified economy offers to entrepreneurs and startups.
Data provided by the Business Registration and Licensing sector at Dubai’s Department of Economy and Tourism revealed that 55,194 new business licences were issued during the first 10 months of 2021, a remarkable surge compared to the same period in 2020, when 32,626 licenses were issued.
“The positive growth figures underline Dubai’s reputation in providing high-growth opportunities in various economic sectors and the growing confidence in the economy,” Dubai Economy said.
The upswing in new licence issuance reflects the strength of the economy and Dubai’s success in managing the impact of Covid-19. Other factors underpinning the increase in new businesses include the government’s agility in amending economic policies to drive economic growth, the low cost of doing business, and the easy procedures for starting businesses, all of which contributed to enhancing investor confidence in Dubai’s diversified economy, Dubai Economy said in a statement.
In line with the recent reforms, investors 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.
The International Monetary Fund and other organisations have been sounding upbeat about the fast-track recovery of the UAE after a contraction of 6.1 per cent in gross domestic product in 2020. “A recovery is expected in 2021, supported by the UAE’s early and strong health response, continued supportive macroeconomic policies, and rebound in tourism and domestic activity related to the delayed Expo 2020, set to begin in October,” the IMF has said.
The recovery is being spurred by rising consumer sentiment and the easing of international travel restrictions. In particular, Dubai’s economy has started to bounce back. In particular, its cornerstone tourism and retail sectors are benefitting from the hosting of Expo 2020, while a recent spate of reforms, including the decision to allow 100 per cent foreign ownership in most industries has started to attract more inflows of foreign capital.
According to Dubai Economy, 59 per cent of the new business licences issued were professional, and 41 per cent were commercial. Bur Dubai accounted for the largest share (37,562) of new licences issued followed by Deira (17,572), and Hatta (60), while the top sub-regions during the first 10 months of 2021 were: Al Fahidi, Burj Khalifa, Port Saeed, Al Marrar, Trade Centre 1, Qubaisi, Al Barsha 1, Naif, Al Garhoud and Al Karama.
Among the legal forms of the new licences issued, the report showed that Sole Establishment companies topped the list with 38 per cent, followed by Limited Liability companies with 28 per cent and Civil Companies with 24 per cent. The legal forms also included: One-Person Limited Liability Companies, Branches of companies based in other emirates; Branches of Foreign Companies; Branches of Free Zone Companies; Branches of GCC Companies, General Partnership Companies; Public Shareholding Companies; and Private Joint-Stock Companies.
The report saw 233,908 business registration and licensing transactions being completed during the first 10 months of 2021, a growth of 17 per cent compared to the same period in 2020, when total transactions reached 199,888. The total number of renewal transactions reached 120,120, a growth of 3.0 per cent compared to the first 10 months of 2020 (117,030).
The number of initial approvals reached 1,703, a growth of 44 per cent compared to the same period last year (1,184), while Commercial Permits increased by 9.0 per cent from 4,709 during the first 10 months of 2020 to 5,141 in October 2021.