Dubai Economy Regains Growth in 2021

Dubai regains growth as Businesses Recover

The year of 2020 ended on a good note for the Dubai economy as the business activities are back on track from the horror of the global

DMCC Witnessed 2,025 new companies registration last year

DMCC (Dubai Multi Commodities Centre), one of the leading free zones in UAE witnessed 2,025 new companies registration in the past year, which is the highest in five years amongst all the mayhem the pandemic caused.

The DMCC states that, the increase in the intake of companies was a result of the “Business Support Package” they introduced to help businesses to cope up with the situation at hand. DMCC added, “The ‘Business Support Package’ is the largest commercial offer to the business hub, with a wide range of incentives and value-added services to both new and existing companies in the free zone.”

There were a number of initiatives taken by the government to support the businesses and as per records, more than 8000 member companies took up 13,000 offers and incentives granted in 2020. Executive Chairman and CEO, Ahmed Bin Suleyam said, “2020 was a year like no other, as the pandemic impacted every society and business in the country, 2021 will have its obstacles but we are positive about the growth trajectory and our continued effort to bring in more foreign direct investment.”

The DMCC had introduced a limited period offer of allowing virtual licenses and issued them in five working days with zero advance fees during the end of 2020. With its association with Israel and Tel Aviv diamond exchange, the free zone is rated as the likely gainer.

The company’s free zone witnessed a 50% decline in the walk-ins and physical visits as the new and existing members prefer to do their transactions online. Feryal Ahmadi, Chief Operating Officer at DMCC said, “Beyond successfully reaching our targets, we made sure that both the new and existing members in the free zone received their reliefs and support during the past year.”

“By offering our largest business support package in history and by ensuring a fully digitalised set up process, we remained the business hub of choice, attracting companies of all sizes, sectors and origins”, said Ahmad Hamza, Executive Director of the free zone. Almost 95% of the new companies set up their business in the free zone digitally.

The incentives have had a positive effect on the Chinese investors as well, as there was a 20% hike in the number of Chinese companies joining in; the DMCC inaugurated a representative office in Shenzhen, in November 2020.

DMCC, ranked as the number one free zone in UAE, has the ideal location with its excellent sea, road and air links. There are more than 18,000 companies functioning in DMCC and has almost 170 companies joining in every month, 95% among them are new to Dubai. DMCC remains the most preferred work place considering its vibrant community and property, not to mention the incentives and support they provide to their member companies. Businesses of all size and status long to be a part of DMCC.

Trade-license-renewal-in-Dubai

Trade license Renewal in Dubai

Every organization in Dubai must have a trade license to run their business, which makes it a mandatory process

UAE allows 100% ownership to foreign investors

Complete business ownership for foreigners planning to start business on UAE mainland has been a much talked about topic in the last many months.

Issuance of Tax Certificates in UAE transferred from MoF to FTA

There has been a major change with regard to the issuance of tax residency certificates and certificates of the status of the business in the UAE.

UAE Bankruptcy Law to include “emergency” situations

The UAE Cabinet amends the Bankruptcy Law, to support businesses during the times of emergencies, which in return will boost the economic sector of the country.

Dubai launches new residency programme

Dubai has launched a new residency programme to help personals working overseas,

RAK exempts renewal fees for selected commercial activities

Ras Al Khaimah’s ruler and UAE Supreme Council Member, Sheikh Saud bin Saqr Al Qasimi has announced that selected commercial activities that were affected badly by COVID-19 will be benefited with reduced trade license renewal fees. Certain businesses will be completely exempted from penalties which were imposed during the lockdown. 

These instructions were brought forward to help regulate the flow of businesses and to support these small activities survive during the time of the pandemic. He has also advised Ras Al Khaimah Department of Economic Development (RAKDED) to provide a 50% exemption on the annual trade license renewal fees to nurseries.  

In addition to it, the institutions which gave their facilities for quarantine purposes will be provided with a 25% exemption. A 50% exemption on license renewal fees will be offered to the ones that are situated near the Ras Al Khaimah International Airport, which had no other alternative locations to shift their businesses.  

Any penalties incurred during the lockdown to any businesses will be fully exempted. These exemptions will be valid for a year.  

These exemptions aim to back up the businesses during such tough times and improve their operations. Only if the businesses are active it will benefit the nation’s economy and the welfare of the people. Such benefits from the government will help the people and it will also be an inspiration for other businesses to choose the country for their businesses operations. They will introduce more foreign direct investments in the nation as well. 

Dubai launches 5-year retirement visa

The government of Dubai has launched a global retirement plan, “Retire in Dubai” where the government issues a 5-year retirement visa for the expats aged 55 and above. The visa can be renewed every 5 years. The plan was introduced for the resident expatriates and foreigners to enjoy the lifestyle of the Emirate. 

The initiative is a combined effort by the Department of Tourism and Commerce Marketing (Dubai Tourism) and General Directorate of Residency and Foreigners Affairs (GDRPA-Dubai). The retirement visa is made available to only those who fall into the eligibility criteria. The expats can choose from any three of the financial requirements for eligibility, which is to be met not only for the initial stage of issuance but also during the time of renewal. 

°Earning a monthly income of AED20, 000 

°Savings of AED 1 million 

°Owning a property in Dubai worth AED 2 million. 

 The Director General, Dubai Tourism, Helal Saeed Almarri, said that “The ‘Retire in Dubai’ programme focuses on enhancing Dubai’s position as an iconic global city and make it the world’s most preferred lifestyle destination”. This initiative is an effort to reinforce the Emirate’s status as a global tourism and lifestyle hub and provide a unique lifestyle for the retirees. 

Such programmes will contribute to the Emirate’s economy and increase its global value. The city’s lifestyle is their major offering to the expats, it also focuses on increasing their foreign investment options as well.  

The government of Dubai has always come up with such unique benefits for the residents and visitors of the Emirate. They aim to provide a quality life for the expats, with the lifestyle and infrastructure of the city. Dubai tourism has also incorporated new ideas to make their living experience heavenly.  

New business license at DIFC

Dubai International Finance Centre (DIFC) comes up with new licenses for start-ups, entrepreneurs, and technology firms. The DIFC said that the new “Innovation License” is an initiative for the Dubai Future District in order to attract new businesses to the centre.

The new license will help improve innovation, creativity, and entrepreneurship in the region. DIFC’s independent English Common Law will help the entrepreneurs grow with their legal and regulatory framework, world-class intellectual property, and data protection regime.

DIFC has over 2500 firms and 25,000 professionals and the innovation license holders will join the technology firms here.

DIFC launched the innovation license with subsidized commercial licensing options, starting from $1500 per annum. The DIFC co-working spaces will also be made available to businesses at attractive rates. Those firms which own the innovation license can secure up to four visas while renting the desk and can avail a subsidy of 50% on additional visas.

“It is an exciting new offering that we hope will attract technology-led, sector agnostic start-ups that will disrupt the technology and financial sectors. These types of businesses have an important role in shaping the economic future of Dubai, UAE and the region. They will be welcomed by members of DIFC’s ecosystem and become a central part of the new Dubai Future District”, said Salmaan Jaffery, Chief Business Development Officer at DIFC.

He also added that the “Innovation License” will be a huge benefit for the future economy developers to stabilize and establish their businesses by making use of the structure of a leading global financial centre.