The Dubai economy continues to flourish thanks to the forward-thinking initiatives introduced by the Dubai government over the past 12 months. These schemes are designed to support inward investment in the emirate, reducing associated business costs for companies in the process.
As a result of these bold new measures created by the Department of Economic Development (DED), over 25,246 companies have benefited as a result. During the past year, 88 new foreign businesses were able to begin their operations in Dubai.
Further analysis of the data reveals 1,200 companies were offered exemption from delayed license renewal fines. Between April and September 30th of this year, 3,400 firms were exempted from a total of 4,192 delayed fines and violations.
The aim of the four initiatives introduced by the DED was to increase competitiveness and to create a sustainable network of economic development in Dubai.
The government is aware of the impact a global trade war could have on the regional economy, which is why it continues to launch new initiatives that support the business community and their investments. Companies are benefiting from being able to avoid various levies and trade violations. In turn, this reduces operational costs for those working in the retail industry, helping to facilitate local production and procurement of goods, while welcoming an ever-expanding group of exciting, innovative start-ups into Dubai.
Dubai’s Increased Global Standing
The World Bank has also recognised all of this good work. Their annual ranking of global economies that make it easy to do business has seen the UAE ranked 11th. Sectors that have benefited the most from these new initiatives include banking, energy and real estate.
88 new foreign companies were attracted to Dubai in 2017 by the Dubai Investment Development Agency (Dubai FDI), hailing from a diverse range of 35 countries. 61 of these firms were global operations, with a further 27 start-up companies. This further illustrates the international appeal the UAE now has to the worldwide business community.
Sectors covered by these businesses include manufacturing, renewable energy, ICT, design, engineering and digital payment services. 12 of the companies are Chinese, with these firms providing investment, retail and hospitality services. Japan is also represented in the wholesale, food, renewable energy and the entertainment sectors. 8 businesses also arrived from the US, covering the tourism, advertising, education, hospitality and marble industries.
Free Zone Growth
12,600 companies who were given exemption from fines for the non-renewal of business licenses for over a year, avoided a total bill of Dh17.4 million. By September 30th, the total exemption value of license violations was Dh39 million.
163 free zone companies have been permitted to operate in Dubai by DED. This has allowed them to extend the scope of their operations across the emirate, helping to make the UAE a more attractive and enticing place for investment from businesses all over the world.
This agreement between DED and the Dubai Free Zones Council is likely to benefit as much as 34,780 free zone companies company operating in the city.