iPhone | iPad
Android
Huawei
Palm scanning technology, though relatively new, has the potential to become the next big thing in the near future due to its reliability
KT APPDOWNLOAD
Setting the Stage for Thriving Business
The Central Bank of the UAE’s Zero Bureaucracy initiative will facilitate investors, businesses and boost economic activity
Zero Bureaucracy initiative is a step in right direction and it will not only facilitate businesses and investors but also help increase economic activity in the country, experts say.
Industry leaders and executives said policy action of the Central Bank of the UAE is aligned with the vision and objectives of the UAE Government's wider programme ‘Zero Government Bureaucracy’ and it would benefit economy in general and financial sector in particular. The move aims to easing government procedures, simplifying people's lives and reducing unnecessary burdens on businesses and individuals in terms of time, effort, and resources.
Khaled Mohmmed Balama
Khaled Mohmmed Balama, Governor of the Central Bank of the UAE, said the ‘Zero Government Bureaucracy’ programme captures our leadership’s vision of developing an integrated, innovative, and forward-looking government ecosystem.
“Eliminating bureaucracy within the Central Bank of the UAE is a continuous process aimed at fostering development and success in the financial sector. This initiative will drive positive impact for consumers, customers, and businesses alike, and support the achievement of the "We the UAE 2031" vision which aims to make the UAE government a forward ecosystem globally,” Balama said.
Central Bank’s active role
The Central Bank has been playing an active role in economic development by introducing economic reforms and promoting ease of doing business procedures in financial sector across the country. It is keen to minimise paper work and remove unnecessary processes to attract investment and increase economic activity in the country.
The Central Bank, in cooperation with the Prime Minister’s Office, recently organised a workshop to discuss the mechanisms for implementing the Zero Government Bureaucracy programme to eliminate at least 2,000 government procedures, minimise procedure times by at least 50 per cent, and remove all unnecessary processes and requirements.
Additionally, the Central Bank Youth Council and Happiness Committee are actively facilitating dialogue between the Central Bank’s employees and various departments in order to share their viable ideas and proposals with the internal committee overseeing the Zero Government Bureaucracy programme, in line with the vision and organisational values of the Central Bank.
Zero bureaucracy and ease of doing business are essential factors that can greatly boost the GDP and economic activity in a country. When businesses are not burdened by excessive red tape and regulations, they are able to operate more efficiently and effectively. This leads to increased productivity, innovation, and competitiveness in the market.
A streamlined and transparent process for starting and running a business attracts both domestic and foreign investors. This influx of capital creates new job opportunities and stimulates economic growth. With less time and resources spent on navigating through bureaucratic obstacles, businesses can focus on expanding their operations, investing in new technologies, and diversifying their products and services.
No more hurdles
Rajeev Kakar
Rajeev Kakar, Founder of Dunia Finance, Global Co-founder of Fullerton Financial Holdings and former Citibank CEO of the Turkey-MEA region, said the ‘Zero Government Bureaucracy’ programme's announcement highlights the UAE's commitment to fostering a thriving business environment while prioritising the well-being of its citizens.
“I believe that by streamlining government procedures and eradicating bureaucratic hurdles, this forward-thinking initiative is well positioned to invigorate the financial sector, directly benefiting consumers, customers, and businesses alike,” Kakar told BTR.
“Personally, as a firm believer in the transformative power of intangibles, I view this initiative as a prime example of an intangible force that can significantly boost the pace of innovation-driven change in the country,” he said.
Kakar, an experienced banker and a serial business founder and entrepreneur, said such relentless pursuit of excellence and innovation will continue to disrupt traditional norms, propelling the UAE to the forefront of global governance and making it an increasingly attractive destination for business and residence.
“The positive ripple-effect of enhanced efficiency will accelerate growth within the sector, boost public and private sector productivity, and boost the country’s gross domestic product (GDP),” he said.
Focus on compliance
Atik Munshi
Atik Munshi, Managing Partner, FinExpertiza UAE, said governments across the world face challenges in in executing works and projects due to bureaucracy.
“Such bureaucratic resulting in delays or abandonment of government tasks are for varied reasons which include lengthy procedures, unnecessary repetitive tasks, multiple levels of approvals where each time new issues are highlighted, corruption, etc. The UAE government is unique in its governance and innovation and under this ideology they have initiated zero bureaucracy policy in the financial sector,” Munshi told BTR.
In response to a question, how this initiative benefit financial sector in the UAE, he said financial sector is a highly regulated sector and hence compliance plays a very important role.
“With the zero bureaucracy, the compliance would likely become more streamlined and easier to achieve. It will also provide added assurance to the entities of how to go about the approvals and steps and the required timeline for the same,” he said.
Potential challenges
Munshi said the latest initiative by Central Bank of the UAE will address potential challenges that have an adverse impact on economic productivity in key sectors.
“Financial activity licence has to go through several processes, documentation and steps; this takes a considerable time factor; hence the success or denial is many a times a trial-and-error game. Compliance is an integral part of the financial sector, many aspects of such compliance is judgemental and dependent on the assessing person, at times this is a major challenge,” he said.
He was of the view that this policy action will give confidence to many investors who wish to have a regulated activity licence in UAE.
“Hopefully this will shorten the approval processes and thus licences can be obtained at a faster pace. Central Bank of the UAE regulated licences can become very attractive as it allows business to operate in the UAE mainland unlike Dubai International Financial Centre (DIFC) and Abu Dhabi Global Market (ADGM).
He said financial sector entities are usually decent size organisations, depending on their licensed activity, they manage funds and investments.
“This zero bureaucracy initiative is likely to attract international players; apart from contribution to the business they also hire high level executives. In combination they can contribute to the GDP of the country,” he said.
Entrepreneurship, innovation
A business-friendly environment encourages entrepreneurship and fosters a culture of innovation. Start-ups and small businesses are able to thrive and grow, contributing to job creation and economic development. This dynamism in the private sector drives up consumer spending, boosts tax revenues, and ultimately increases the GDP of the country, according to another analyst.
In addition, he said a hassle-free regulatory environment attracts international companies looking to expand or relocate their operations. This creates partnerships and fosters knowledge exchange, leading to a more competitive and dynamic economy.
In conclusion, zero bureaucracy and ease of doing business play a crucial role in boosting GDP and economic activity in a country by promoting investment, job creation, innovation, and competitiveness. It is imperative for governments to prioritise these factors in order to create a conducive environment for businesses to thrive and contribute to overall economic prosperity.
— muzaffarrizvi@khaleejtimes.com
More news from Business Technology Review
UAE consumers get their hands on the world's thinnest and lightest AI foldable smartphone — the HONOR Magic V3, and the new HONOR MagicPad 2 on the very same day as its global debut
How Digital Twin Technology is driving economic growth and will make the UAE a financial powerhouse
The iPhone 16 series is shaping up to be a game-changer, promising a range of new upgrades for users
Major gold retailers see good sales during the upcoming festive season on rising consumer confidence and renewed love for fine jewellery
With the rise of digital financing and the shift away from traditional credit cards, BNPL presents a compelling alternative that aligns with the needs and preferences of modern consumers
Explore how Japan's visionary avatars bridge the gap between humans and robots, as Professor Hiroshi Ishiguro defines a future where technology will enhance human experience
Satish Sanpal, Chairman of ANAX Holding, is a strong advocate for philanthropic causes, sustainable entrepreneurship, and the development of future leaders