Abu Dhabi’s move to slash business set-up fees by 94 per cent will strengthen its position as a destination for new ventures and boost foreign direct investment into the emirate, economists say.
In addition to improving the emirate's competitiveness, the Abu Dhabi Department of Economic Development's initiative to reduce fees to Dh1,000 will create more jobs and support small and medium businesses across several sectors, bolstering the emirate's non-oil economy, they said.
“The objective is to attract FDI to support different sectors of the economy, alongside developing new industries that will lead future growth,” said Monica Malik, chief economist at Abu Dhabi Commercial Bank. “It certainly makes Abu Dhabi attractive to new ventures and start-ups.”
The new fees are applicable to six activities within the business licence and will cover all fees from Abu Dhabi government entities.
Licence renewal fees have also been reduced to Dh1,000. The new fees structure will be effective from July 27, 2021 but all federal fees will continue to apply, the economic department said on Sunday.
“It is a strong move at a time when competition between the major business centres in the Gulf [region] is becoming more intense,” said Scott Livermore, chief economist at Oxford Economics. “These are important steps forward.”
The latest government initiative needs to be taken in conjunction with other measures, said Ms Malik.
To boost its non-oil-economy and support businesses, especially SMEs, Abu Dhabi unveiled the Dh50 billion Ghadan initiative. It also introduced visa reforms geared to attract more investors.
The emirate has also unveiled several packages to cut the cost of doing business during the pandemic. It provided rent rebates, discounts on utility bills and loan guarantee packages to businesses and SMEs and over the past year.
In 2020, the government also detailed a plan to stimulate economic growth through strategic investments and 16 initiatives to support the private sector.
"More than each measure by itself, it is the accumulative impact of these moves that is making the change in the UAE, as whole, and [in] the emirate,” said Ms Malik.
Abu Dhabi has adopted a “very proactive overall stance” and “the clear focus, not only from this measure but also from others, is on strengthening the business environment, lowering costs and increasing the ease of doing business”, she said.
Despite Covid-19 headwinds and a global economic slowdown last year, the emirate is in a strong fiscal position to extend support to businesses.
Abu Dhabi's economic fundamentals and large fiscal buffers are supported by revenue from the hydrocarbon sector, S&P Global Ratings said in June when it affirmed its investment grade rating.
Its economy is expected to grow by between 6 per cent and 8 per cent over the next two years, driven by government spending, financial services and foreign direct investment, Mohammed Al Shorafa, chairman of Department of Economic Development, said earlier this year.
The latest move also aligns with the government’s policy to support diversification of the economy “through modern sectors such as digital and creative industries where competition for to attract these firms is becoming more intense”, said Mr Livermore.
The objective is to attract FDI to support different sectors of the economy, alongside developing new industries that will lead future growth
Monica Malik,
chief economist, Abu Dhabi Commercial Bank
“This is not just about attracting new investors from outside Abu Dhabi, however, but also encouraging expats already in Abu Dhabi to invest in the economy,” he said.
SMEs across several sectors of the Abu Dhabi economy will “significantly benefit from the decision to sharply reduce business set up and license renewal fees”, said Jaap Meijer, managing director and head of research at Dubai investment bank Arqaam Capital.
Companies interested in procuring supply contracts from the government also stand to benefit as the latest incentive lowers the cost of establishing a local presence and will support the emirate’s push to develop its in-country value programme, Mr Livermore said.
The reduction in business set-up fees and increased foreign investment will create “new jobs and more opportunities, which leads to an increase in income and more purchasing power”, which in turn will lead to an overall boost to Abu Dhabi’s economy, said Hettish Karmani, head of research at Muscat-based U-Capital.
More on Quran memorisation:
Zayed Sustainability Prize
JOKE'S%20ON%20YOU
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The Africa Institute 101
Housed on the same site as the original Africa Hall, which first hosted an Arab-African Symposium in 1976, the newly renovated building will be home to a think tank and postgraduate studies hub (it will offer master’s and PhD programmes). The centre will focus on both the historical and contemporary links between Africa and the Gulf, and will serve as a meeting place for conferences, symposia, lectures, film screenings, plays, musical performances and more. In fact, today it is hosting a symposium – 5-plus-1: Rethinking Abstraction that will look at the six decades of Frank Bowling’s career, as well as those of his contemporaries that invested social, cultural and personal meaning into abstraction.
Specs
Engine: Dual-motor all-wheel-drive electric
Range: Up to 610km
Power: 905hp
Torque: 985Nm
Price: From Dh439,000
Available: Now
UAE currency: the story behind the money in your pockets
Living in...
This article is part of a guide on where to live in the UAE. Our reporters will profile some of the country’s most desirable districts, provide an estimate of rental prices and introduce you to some of the residents who call each area home.
MATCH INFO
Uefa Champions League, last 16, first leg
Ajax v Real Madrid, midnight (Thursday), BeIN Sports
Champions parade (UAE timings)
7pm Gates open
8pm Deansgate stage showing starts
9pm Parade starts at Manchester Cathedral
9.45pm Parade ends at Peter Street
10pm City players on stage
11pm event ends
Bugatti Chiron Super Sport - the specs:
Engine: 8.0-litre quad-turbo W16
Transmission: 7-speed DSG auto
Power: 1,600hp
Torque: 1,600Nm
0-100kph in 2.4seconds
0-200kph in 5.8 seconds
0-300kph in 12.1 seconds
Top speed: 440kph
Price: Dh13,200,000
Bugatti Chiron Pur Sport - the specs:
Engine: 8.0-litre quad-turbo W16
Transmission: 7-speed DSG auto
Power: 1,500hp
Torque: 1,600Nm
0-100kph in 2.3 seconds
0-200kph in 5.5 seconds
0-300kph in 11.8 seconds
Top speed: 350kph
Price: Dh13,600,000
The%20specs
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How to apply for a drone permit
- Individuals must register on UAE Drone app or website using their UAE Pass
- Add all their personal details, including name, nationality, passport number, Emiratis ID, email and phone number
- Upload the training certificate from a centre accredited by the GCAA
- Submit their request
What are the regulations?
- Fly it within visual line of sight
- Never over populated areas
- Ensure maximum flying height of 400 feet (122 metres) above ground level is not crossed
- Users must avoid flying over restricted areas listed on the UAE Drone app
- Only fly the drone during the day, and never at night
- Should have a live feed of the drone flight
- Drones must weigh 5 kg or less
HOSTS
T20 WORLD CUP
2024: US and West Indies; 2026: India and Sri Lanka; 2028: Australia and New Zealand; 2030: England, Ireland and Scotland
ODI WORLD CUP
2027: South Africa, Zimbabwe and Namibia; 2031: India and
Bangladesh
CHAMPIONS TROPHY
2025: Pakistan; 2029: India
Dhadak 2
Director: Shazia Iqbal
Starring: Siddhant Chaturvedi, Triptii Dimri
Rating: 1/5
Managing the separation process
- Choose your nursery carefully in the first place
- Relax – and hopefully your child will follow suit
- Inform the staff in advance of your child’s likes and dislikes.
- If you need some extra time to talk to the teachers, make an appointment a few days in advance, rather than attempting to chat on your child’s first day
- The longer you stay, the more upset your child will become. As difficult as it is, walk away. Say a proper goodbye and reassure your child that you will be back
- Be patient. Your child might love it one day and hate it the next
- Stick at it. Don’t give up after the first day or week. It takes time for children to settle into a new routine.And, finally, don’t feel guilty.
The%20specs
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MATCH INFO
Champions League quarter-final, first leg
Manchester United v Barcelona, Wednesday, 11pm (UAE)
Match on BeIN Sports
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RESULTS
5pm: Wathba Stallions Cup Maiden (PA) Dh 70,000 (Dirt) 1,600m
Winner: Samau Xmnsor, Abdul Aziz Al Balushi (jockey), Ibrahim Al Hadhrami (trainer)
5.30pm: Maiden (PA) Dh 70,000 (D) 1,600m
Winner: Ottoman, Szczepan Mazur, Abdallah Al Hammadi
6pm: Maiden (PA) Dh 70,000 (D) 1,800m
Winner: Sharkh, Patrick Cosgrave, Helal Al Alawi
6.30pm: Handicap (PA) Dh 85,000 (D) 1,800m
Winner: Yaraa, Fernando Jara, Majed Al Jahouri
7pm: Handicap (PA) Dh 70,000 (D) 2,000m
Winner: Maaly Al Reef, Bernardo Pinheiro, Abdallah Al Hammadi
7.30pm: Maiden (PA) Dh 70,000 (D) 1,000m
Winner: Jinjal, Fabrice Veron, Ahmed Al Shemaili
8pm: Handicap (PA) Dh 70,000 (D) 1,000m
Winner: Al Sail, Tadhg O’Shea, Ernst Oertel
Paatal Lok season two
Directors: Avinash Arun, Prosit Roy
Stars: Jaideep Ahlawat, Ishwak Singh, Lc Sekhose, Merenla Imsong
Rating: 4.5/5
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EA Sports FC 26
Publisher: EA Sports
Consoles: PC, PlayStation 4/5, Xbox Series X/S
Rating: 3/5
MATCH INFO
Uefa Champions League semi-finals, second leg:
Liverpool (0) v Barcelona (3), Tuesday, 11pm UAE
Game is on BeIN Sports
The%20specs
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