Dubai turned challenges into success: Sheikh Hamdan

Dubai - Business licensing activity surpasses pre-pandemic levels to record the highest growth rates in the history of Dubai.

A spate of new strategies and reforms has enabled Dubai to successfully navigate the challenges of the pandemic and rebound rapidly as a preferred global business and investment destination, Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Dubai Crown Prince and Chairman of The Executive Council of Dubai, said on Sunday.

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Swift and effective response measures from the government, amended polices to reduce the cost of doing business along with timely stimulus packages helped to accelerate economic growth and enhance business and investor confidence in Dubai during the crisis, Sheikh Hamdan said in a statement. He made the statement during the launch of the half-yearly report on business activities issued by the Business Registration and Licensing (BRL) sector of Dubai Economy.

“The strong growth of the business sector reflects Dubai's ability to transform challenges into achievements in line with the vision of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, and his conviction that successful crisis management creates opportunities, said the Crown Prince.

He said Sheikh Mohammed’s vision has enabled Dubai to successfully overcome the repercussions of Covid-19, accelerate its recovery and reinforce its status as a global hub and the world’s best place to live and work.

Sheikh Hamdan said the full ownership option granted to foreign investors, which is a momentous step towards achieving the vision and directives of Sheikh Mohammed to attract foreign direct investment (FDI) into vital sectors and raise business competitiveness in line with Dubai’s goals for the next 50 years, also contributed to improving investor confidence.

The BRL report showed Dubai’s licensing activity surpassing pre-pandemic levels to record the highest growth rates in the history of the emirate.

As per the report, a total of 31,000 licences were issued during the first six months of 2021, up 77 per cent compared to the same 2020 period when 17,478 licences were issued. “The record growth can be attributed largely to measures taken to ensure business continuity and further simplify government procedures for businesses,” said the report.

“The international diversity of investors in Dubai validates the leadership’s focus on creating a growth-friendly and transparent investment environment across the UAE marked by exceptional ease of doing business as well as security and safety,” Sheikh Hamdan said.

“The records we have achieved inspire us to continue working as one team to further enhance Dubai’s position as an incubator for entrepreneurs and a hub for global companies by identifying new opportunities for investors to accomplish their ambitions and building innovative development pathways to reinforce Dubai's global leadership in all fields,” said the Crown Prince.

According to Dubai Economy, ‘Invest in Dubai,’ the integrated digital platform for establishing a business in Dubai, which was launched last February by Sheikh Mohammed, contributed to 25 per cent of new licences issued during the past five months. Together, those 25 per cent of licenses account for 10,591 investors from 117 different nationalities. A total of 37 per cent of the new investors that came through ‘Invest in Dubai’ belonged to the 26-35 age group while another 35 per cent were aged 36-45.

The latest report on new licences from the ‘Business Map’ of Dubai Economy shows that Bur Dubai area accounted for the largest share (19,931) of new licenses issued in H1 2021 followed by Deira (11,008). The Hatta region accounted for 33 of the new licences. The report showed a strong recovery of commercial activity in Naif and Al Ras areas as new licence issuances in these two areas in H1 2021 (723) reached the highest since 2016, representing a 75 per cent growth compared to the same period of 2020. The number of operating licences in Naif and Al Ras reached 4,833 in H1 2021, most of which (58 per cent) are for commercial activities.

Sami Al Qamzi, director general of Dubai Economy, said the exceptional business licensing activity witnessed by Dubai during the first half of 2021 is a testament to the resilience and sustainability of the emirate’s economy.

“Dubai has been able to consolidate its economic fundamentals, progressive vision and ambition into a formidable force capable of withstanding challenges, maintaining a healthy growth rate, and achieving its desired transformation into a digital economy. The confidence demonstrated by investors and businesses in the growth potential of various sectors in the emirate and digital initiatives like ‘Invest in Dubai’ also underlines the vision of our leadership and the approach adopted by the government to further diversify the economy and integrate modern technologies to achieve customer happiness,” said Al Qamzi.

issacjohn@khaleejtimes.com