Dubai issues 24,662 new business licenses in Q1 2022

(MENAFN- Khaleej Times) Business registration and licensing transactions grew by 36% during Q1 2022, reflecting Dubai's growing status as a hub for start-ups and investors worldwide Aerial view of the sheikh Zayed Road. Analysts and economic experts said the positive growth reflects the resilience of the economy and underlines the role of the private sector as a key partner in driving growth of the emirate. — File photo by Muzaffar Rizvi

Published: Sun 10 Apr 2022, 3:21 PM

Dubai recorded strong double-digit growth in new business licences during the first quarter of 2022 as the economic activities resumed and attracted investors across the globe, says a report.

The emirate, which proved its economic resilience during the pandemic, issued 24,662 new business licences during the January-March quarter, reflecting a 58 per cent year-on-year growth over the same quarter last year.

The report, developed by the DET's Business Registration and Licensing (BRL) sector of the Department of Economy and Tourism (DET) in Dubai, said the emirate issued 15,580 licenses during the first quarter of 2021.

Analysts and economic experts said the positive growth reflects the resilience of the economy and underlines the role of the private sector as a key partner in driving growth of the emirate.

Atik Munshi, managing partner, FinExpertiza UAE, said Dubai government has always been very proactive and progressive for all business matters. He said investors and business community are cognizant of this fact and their confidence is reflected by way of more business registrations in the Emirate.

“A 58 per cent year-on-year growth of new licenses for first quarter of 2022 in Dubai is commendable particularly when the effects of Covid over the global economy is still taking its toll. Scores more expected to be attracted to UAE in this quarter as it has proved to be the right place for business by being neutral and unbiased even in conflicting times,” Munshi told Khaleej Times on Sunday.

Professionals prefer Dubai

About 57 per cent of the new business licences issued during the first quarter were professional and 43 per cent were commercial, according to the report.

Bur Dubai accounted for the largest share (16,577) of the new licences issued, followed by Deira (8,066) and Hatta (19), while the top sub-regions were Al Fahidi, Al Marrar, Burj Khalifa, Dubai Investment Park 1, Port Saeed, Al Quoz 3, Naif, Trade Centre 1, Hor Al Anz East and Al Barsha 1.

Saad Maniar, senior partner at Crowe, said the business dynamics have changed, so much so that in place like Karama which was a hub of low-cost product has been transformed in to high-value products.

“This change is due to change in customer preference, who demand quality and fashionable products. On the back of increase in population with better spending power, overall the business environment has improved significantly in all area of activities in Dubai,' Maniar told Khaleej Times on Sunday.

Among the legal forms of the new licences issued, sole establishment companies topped the list with 33 per cent, followed by Civil Companies with 26 per cent and Limited Liability companies with 19 per cent. The legal forms also included one-person limited liability companies, branches of companies based in other emirates, branches of foreign companies, branches of free zone companies, branches of GCC companies, and public shareholding companies.

Robust and promising data

The report further said that a total of 136,034 business registration and licencing transactions were completed during the January-March 2022 quarter, indicating a growth of 36 per cent compared to the same quarter last year when total transactions reached 99,741.

“The number of initial approvals reached 19,835, showing a growth of 43 per cent compared to the same period last year (13,914), while trade name reservations reached 22,112, reflecting a growth of 29 per cent compared to 17,133 issued in the corresponding period of last year.

Instant licence gains popularity

The BRL sector reported that 7,492 instant licences were issued during the first quarter of 2022, indicating a year-on-year growth of 310 per cent. About 1,828 licences were issued in the same quarter of 2021, the report said.

The instant licence service provides a convenient and easy solution for businessmen to obtain a commercial license within five minutes on the Invest in Dubai platform — invest.dubai.ae — to establish and conduct business in Dubai. Businesses can secure their business licence in one step without having a company lease or location for the first year.

Public-private collaboration

The DET report also highlighted the importance of close collaboration between the government and private sectors to support economic development and the ambitious vision of Dubai and the UAE. The DET strives to deliver solutions that contribute to facilitating growth and ease of doing business in Dubai.

“Kudos to DET which made processes faster and less cumbersome for the investors to do business and the Instant Licence category is one such initiative by DET which is a big hit,” Munshi said.

The report further said the exceptional growth underlines the robust fundamentals, resilience and sustainability of Dubai's economy, led by a progressive vision and a strong ability to withstand challenges and maintain a healthy growth rate.

“The substantial rise in new business licences also highlights the confidence of investors and businesses in Dubai's growth potential across various sectors,” the report said.

Furthermore, the figures demonstrate DET's continuous efforts to achieve the vision and directives of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, to support productivity, growth, economic diversification, sustainability and competitiveness in the emirate, as well as build strategic economic sectors and provide high-quality services that meet the highest international standards.

—

MENAFN10042022000049011007ID1103988393