The United Arab Emirates experienced a strong start for the year 2019 as the economy gained momentum at the right time by publishing 6% growth in new business licenses. This has reflected the growing confidence of the investors in the country before the one-year countdown to World Expo 2020 in Dubai. The companies remained confident that further improvement in new orders would result in the sustained progress of new business in Dubai, activity over the upcoming year. The bold decisions taken by the UAE government like issuing 10-year visas has boosted not just new investors’ confidence but also has given a lifeline to existing ones.
The most recent report issued by the Business Registration and Licensing (BRL) sector of Department of Economic Development Dubai showed that around 14,737 new licenses were allotted during the first half of 2019 compared to 11,059 in the same period last year, reflecting year-on-year growth of 33.25%.
The commercial sector has remained the top choice of investors as it comprised of 52% licenses issued in the January to June period, followed by professional with 45%, tourism with 2%, and 1% related to the industry. The Department of Economic Development has issued 81 licenses daily during the first half of the year.
Of the total number of licenses issued during the January-June 2019 period, the report said 7,392 were for LLC, 3,883 for sole proprietorship companies and 2,686 for local businesses as investors lined up to set up business in the Emirates, which is expected to post a 2.1 per cent development this year.
Indians, Pakistanis, Bangladeshis, Egyptians and British remained the top five nationalities that secured new licenses, while Chinese, Saudis, Jordanians, Filipinos and Sudanese were among the top 10 investors.
Surprisingly, the numbers this year showed corporate women power. The article revealed that new business persons accounted for 88 per cent of the licenses issued during the first half of 2019. Women improved their share amongst modern business owners to 12 per cent, emphasizing Dubai’s importance as a perfect Launchpad for all investors and entrepreneurs.
Changes Brought by the UAE Government
Few of the changes brought in the first half of 2019 are as follows:
As mentioned earlier, the DED Dubai issued more licenses compared to last year during the first half of 2019. This change helps to redirect Dubai’s economic system by providing vital data on each license category including their numbers and circulation every month
Attracting International Investment
Attracting international investments is complicated to the supportable development of any country, and in the case of the UAE, to its economic diversification policy. Higher foreign direct investment results in generating more job opportunities and tougher international collaboration and can lead to the faster realization of the purposes of both UAE Vision 2021
Increase in Real Estate Sector
The long-term property outlook in 2019 UAE remains positive. Attractive prices for real estate have also broadened the pool of buyers.
Additionally, 2019 may see an upsurge in first-time buyers inflowing the market. Declining rents across the emirates will give tenants the chance update to bigger homes or more strategic locations. Another factor t into the UAE real estate forecast for 2019 is the variety of flexible payment plans being offered on off-plan projects
Apart from this, in the second half of the year, the aim is to bring deeper intact of next-generation technologies such as robotics, artificial intelligence, and blockchain on investment.
Such reasons give a boost to Dubai’s business scenario. Company Investors from various parts of the world are considering Dubai to set up their business and to invest in this growing economy. If you are planning or thinking about starting a new business in Dubai, you can talk to business consultants at Commitbiz Management Consultants, who can guide throughout you the procedures of business setup in UAE. Contact us today – we’d be happy to assist you.