The United Arab Emirates started off the year 2019 at a high note. Throughout the entirety of the year, UAE’s economy kept a steady momentum going the remarkable 6% rise in registration for new business licenses showcased that.
This increase displays the growing confidence of the entrepreneurs, business owners, and investors in the country before the one-year kick-off to World Expo 2020 in Dubai.
Investors continue to be confident in the UAE’s government policies that promise sustained progress of the new businesses in setting up in Dubai.
The blueprint formulated by the government includes the bold decision of implementing ten-year residence visas for investors boosting their confidence in the country by tenfold!
The latest report published by the Business Registration and Licensing (BRL) sector of the Department of Economic Development (DED) Dubai , revealed that around 14,737 new business licenses were allotted through the first half of 2019.
Meanwhile, 11,059 permits were issued during the same time last year, reflecting an annual growth of 33.25%.
The sectors most preferred by investors are listed below:
- The commercial sector remained the top choice for investors as it comprised 52% of the new licenses
- The professional licenses came in 2nd with 45%
- Tourism sector secured the 3rd spot with 2%
- Other industries combined contributed to 1%
The Department of Economic Development (DED) has dispensed 81 licenses daily throughout the first half of the total number of licenses that were issued from January to June 2019, according to the report, 7,392 were for LLCs, 3,883 were for the sole proprietors, and 2,686 for local businesses exhibiting the investors strong desire of starting a business in the Emirates.
The new businesses setting up in Dubai are expected to increase by 2.1 % in the upcoming year.
Top 5 nations that obtained new licenses
The top Five nationalities that secured new licenses were:
- Egyptian and
While the Chinese, Saudis, Jordanians, Filipinos, and Sudanese were among the top ten investors.
In a surprising turn of events, the year 2019 displayed corporate women’s power. An encouraging increase in women entrepreneurs was reported, with over 12% of the new licenses issued that were procured by them, highlighting the UAE’s significance as an ideal springboard for all investors and entrepreneurs for business setup in Dubai.
Reformations brought by the UAE government
Few of the reforms brought in by the UAE government in the first half of 2019 are as follows:
New Business Licenses
As it has been mentioned several times earlier, the DED of Dubai issued more new licenses compared to 2018. This change, by far, aids in elevating Dubai’s economy.
Furthermore, the data collected through them also helps in redirecting and restructuring of the policies to provide a better business environment for entrepreneurs.
Enticing Foreign Investment
Drawing international investments is intrinsic for the sustainable development of any country, and in the case of the UAE, it is essential for its continued economic diversification.
A higher foreign direct investment translates into more job opportunities for the locals. Besides that, it can also lead to secure partnerships with dependable corporations, which in turn stimulate growth.
Growth of the Real Estate Sector
The year 2019 was, in general, very positive for all sectors in the UAE, particularly the property sector. Attractive rates for real-estate have also increased and broadened the pool of buyers.
In addition to that, 2019 saw a surge in first-time buyers entering the market. This trend has caused a decline in rents across the emirates, which is good news for the tenants as this will allow them to upgrade to bigger and better homes.
Another perk that the real-estate sector will be able to offer flexible payment options that the buyers can opt for while paying for their purchases.
The UAE government is planning to normalize the use of next-generation technologies — robotics, AI and blockchain, etc.— into the property sector.
All of these give an immense boost to Dubai’s business potential. Entrepreneurs, both local and international, are seriously considering Dubai as a possible venue for company formation.
If you are planning on starting a business in Dubai, then now is the time to take the plunge.
To make the process of business incorporation easy, you can consult with Business Setup Dubai, who are business setup consultants that are well-versed in the art of company formation in the UAE.
Contact us and book our commitment-free consultation call today!