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UAE Freezones Biz News Updates
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Dubai moves yield positive results
Investors have posed their full confidence in the Dubai economy and have
responded positively to the economic initiatives launched by the Dubai
government this year to reduce the cost of doing business and facilitate
inward investment in the emirate.
The latest data shows that the government measures to facilitate investors
and ease the business community yielded positive results as over 25,246
companies benefitted from the initiatives launched by the Department of
Economic Development (DED) in Dubai during the past six months, Khaleej
Times has learnt.
As per details, 88 new foreign companies were attracted to Dubai; 1,200
firms were exempted from delayed licence renewal fines; and 3,400 companies
were exempted from delayed 4,192 fines and violations between April and
September 30 this year.
The DED introduced four initiatives on the directives of His Highness Sheikh
Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE
and Ruler of Dubai to stimulate competitiveness and achieve sustainable
economic development in Dubai.
"These initiatives have established Dubai as a global business destination,
opening new and attractive opportunities for sustainable economic growth,
supporting productivity and improving the quality of public services," Sami
Al Qamzi, director-general of the DED in Dubai, quoted in a local media
report.
The government has launched various initiatives to support economic
development and facilitate the business community to offset the impact of
the global trade war and reduce the cost of doing business in the emirate.
The initiatives and benefits are related to exempting businesses from fines
and trade violations, reducing operational cost in the retail sector,
supporting local production and procurement, as well as attracting the best
startups to Dubai and promoting them.
Vikas Papriwal, partner and head of Advisory at KPMG in the Lower Gulf, said
that the UAE appears to have made tremendous progress in equipping itself to
successfully operate in a post-oil economy.
"This year alone, the government has undertaken several measures to bolster
economic stimulus plans by providing relief from corporate fines and fees,
thus winning the confidence of the local business community," he said.
He also said that the UAE government's efforts have even been acknowledged
by the World Bank in its annual ranking of the ease of doing business, where
the UAE ranked 11th. The government has also been lauded for efforts
benefiting sectors such as energy, real estate and banking.
"The reforms are strategic steps to make the business environment attractive
for local as well as foreign investors and will further boost the
competitiveness of the emirates among other regional global economies," he
said.
International investments
Dubai Investment Development Agency (Dubai FDI), an agency of the DED, has
succeeded in attracting 61 global companies to set up operations in Dubai,
as well as in supporting the expansion of 27 startups operating in Dubai,
bringing the total number of companies benefiting from the initiative to 88
from 35 countries, according to a report in the local media.
These companies operate in diverse sectors such as digital payment services,
manufacturing, design, engineering, renewable energy and ICT. It includes 12
Chinese companies specialising in retail, hospitality and investment; nine
Japanese firms engaged in the general trade, food, wholesale, renewable
energy, electrical industries and entertainment; and eight US companies in
the fields of hospitality, advertising, tourism, education and marble
industry.
The DED's services also included the exemption of fines for non-renewal of
business licences for more than one year, with 12,600 companies benefiting
from this with a value of Dh17.4 million. However, the total exemption value
of violations was amounted to Dh39 million by September 30.
Free zones companies
The DED represented by the Business Registration & Licensing sector has also
permitted 163 free zone companies to operate in mainland Dubai to enable
free zone entities to expand their operations across the emirate, and
strengthen Dubai's reputation for attracting investments, promoting
entrepreneurship and facilitating business development.
Nearly 34,780 free zone companies in Dubai are expected to benefit from the
agreement between DED and the Dubai Free Zones Council, according to the
report.
Thaddeus Best, analyst at Moody's Severing Risk Group, said business reforms
may aid a turnaround in 2019. He said the UAE is the only GCC country that
has a score of 'Very High (+)' for its fiscal strength.
"At the federal level, the UAE announced a number of major reforms including
the liberalisation of foreign investment laws which will allow for 100 per
cent foreign ownership in certain sectors outside of free-zones, as well as
further reforms to the visa system such as new 10-year visas for various
classes of investors in addition to selected professions," he said.
"Although full details of the investor visa have yet to be announced, the
changes could be supportive to foreign investment in real estate if property
is included in the criteria," he added.
November 5, 2018 |
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Courtesy Galadari Printing and Publishing LLC
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