(MENAFN- Khaleej Times)
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.
The half-yearly report of Dubai Economy showed a remarkable recovery in many vital activities and sectors during the first half of 2021. The Restaurants & Cafes category saw 1,153 new licenses, a growth of 92 per cent compared to the same period last year. The Tourism sector welcomed 342 licenses that included 20 new hotels (a growth of 147 per cent), in addition to various other activities, such as inbound and outbound trips. The sector is expected to see increased activity, especially with the rise in tourist numbers expected due to Dubai's continued popularity as a major global destination and its profile as the venue for Expo this year.
Gold & jewellery
The gold and jewellery sector also witnessed a remarkable growth of 102 per cent compared to the first half of 2020. A total of 204 new licenses were issued in H1 2021 in this sector, which is currently seeing a global rebound.
Real estate
The real estate sector witnessed the highest growth of 186% with 487 licenses being issued, compared to 170 licenses for the same period last year. Activities in this sector included brokerage of sale and purchase and real estate rentals.
According to Dubai Economy, investment activity in Dubai also gained remarkable traction in H1 2021 with the entry of 246 investment firms, an 80 per cent growth compared to the same period of 2020. The activities included investments in commercial projects as well as their establishment and management, in addition to projects in the industrial, agricultural, health services and energy sectors. The diversity of new investment activities is expected to accelerate economic diversification in Dubai.
The first-half also saw 12 new holding companies, bringing the total of such companies in the emirate to 216. This is testament to Dubai's growing status as a preferred investment destination among large companies.
Transport, shipping and warehousing
Transport, Shipping & Warehousing, a prominent sector linked to internal and external trade, saw 872 new licenses in H1 2021, a 105 per cent growth from the corresponding period in 2020. The activity in this sector, which includes sea freight services and container handling in addition to transporting goods by heavy and light trucks, is expected to achieve high revenues with the growing pace of economic recovery, the growth of imports and exports, and the increase in demand for goods.
The medical and pharmaceutical sector also witnessed a steep rise in the number of licenses issued (196), growing 120 per cent, compared to the first half of 2020. Two new hospitals, as well as clinics, rehabilitation centres, laboratories, and pharmaceutical production units were among the facilities licensed. The growth in this sector reflects the development of medical tourism in the UAE, the expanding healthcare coverage in Dubai, and the growing reliance on the local industry for medicines and medical supplies, Dubai Economy said in its report.
Issac John Editorial Director of Khaleej Times, is a well-connected Indian journalist and an economic and financial commentator. He has been in the UAE's mainstream journalism for 35 years, including 23 years with Khaleej Times. A post-graduate in English and graduate in economics, he has won over two dozen awards. Acclaimed for his authentic and insightful analysis of global and regional businesses and economic trends, he is respected for his astute understanding of the local business scene.
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