Being the capital of the United Arab Emirates, not only is Abu Dhabi the core for large scale economic policy changes, but it also occupies the most abundant coastal space giving largescale access to the Persian Gulf. Therefore, the majority of the trading, export, and import businesses choose Abu Dhabi for doing business, and the sibling emirates purchase resourceful raw materials from supplier entities originating from Abu Dhabi. This profoundly influences the aspect of business setup in Abu Dhabi. Moreover, in order to boost businesses as well as encourage entrepreneurs and multinational corporations to set up business in the UAE, the leaders of Abu Dhabi have introduced various long-term visions and missions. The aim is to achieve a sustainable business-friendly future for the companies that build the economy as well as encourage diversity and innovation for a globalized industrial approach.
Renew Business License for 3 years
As per the 2020 Q1 and Q2 session report published by the Abu Dhabi DED, more than 33,000 economic license renewals were done within the first half of the year. This gave the DED a rough estimate towards the new and existing businesses in Abu Dhabi that would continue to operate in the emirate even during the pandemic crisis. In order to simplify the process of doing business in Abu Dhabi, the DED has announced that investors and business owners can renew businesses for 3 years instead of the 1-year licenses that were in legal circulation prior. This decision is expected to reduce the procedural cost and licensing transactions up to 70% to support small and medium enterprises during the difficult times of the coronavirus pandemic.
The aim of the DED was to ensure that local businesses and SMEs continue to contribute to the private sector of the emirate. This would, in return, help the economy to stabilize and possibly halt a potential recession on the horizon. Even though the private sector had taken a significant hit in the second quarter, keeping an optimistic mindset, the government had announced an early lockdown to set up for a sustainable reopening of businesses with various relief packages to ensure continuity in economic operations. In March 2020, Abu Dhabi Executive Council launched a host of new measures under 'Ghadan 21' to support SMEs and make loans available to local companies to combat Covid-19. The DED has come out with precautionary measures and safety procedures that all corporate entities must abide by for doing business in Abu Dhabi for the safety of the consumers and employees/staff members. Citizens have been made aware of the revised community guidelines and public health policies via mainstream media outlets to ensure that the outbreak does not severely impact the relationship between business entities and consumers.
Additional Relief Measures by Abu Dhabi for Business Entities
- Relief package of 5 Billion AED in utility subsidies.
- Exempting industrial and commercial activities from the Tawtheeq fee.
- Stimulus package of 3 Billion AED credit for supporting SMEs.
- 1 Billion AED in market maker fund to improve liquidity.
- Suspending real estate registration fees.
- Waiving commercial and industrial penalties and several other initiatives.
Licenses Issued by Abu Dhabi DED
The Department of Economic Development (DED) has listed various activities that can be recognized as business operations. But, to develop a licensing structure, the following six activities have been identified in the niche category for activities requiring licenses and permits issued by the government to business entities.
The various types of business licenses that are issued by the DED to businesses are –
- Industrial License
- Commercial License
- Professional License
- Craftsmanship License
- Tourism License
- Agricultural License
How Commitbiz Plays an Important Role
We at Commitbiz comprise a team of industry professionals who cater to several businesses in the UAE with an overall experience of 15 plus years in the Emirati market. Our services include business setup in the UAE, company secretarial services, accounting and bookkeeping services, and nominee director services. We strive to provide entrepreneurs with an overall package of administrative services to simplify their journey from inception to incorporation in the UAE market. Contact us to know more and expand your business in the middle east.