Dubai's response to curb Covid-19 enabled 'robust growth', Sheikh Hamdan says

The rapid response of the Dubai government and its adaptive measures to contain the Covid-19 pandemic have enabled the emirate to maintain its robust economic growth, Sheikh Hamdan bin Mohammed, Crown Prince of Dubai, has said.

The decision to roll out "new strategic approaches" and amending policies to accelerate economic growth have also helped Dubai to bounce back, Sheikh Hamdan, who is also chairman of the Executive Council, said in a Dubai Media Office statement.

A reduction in the cost of doing business and economic stimulus packages to save lives and livelihoods boosted investor confidence in the resilience of the emirate’s economy, he said to mark the launch of the Business Registration Report on Sunday.

The strong growth of the business sector reflects "Dubai's ability to transform challenges into achievements", Sheikh Hamdan said, adding that the vision of the emirate's leader has enabled it to overcome the repercussions of Covid-19 and "reinforce its status as a global hub and the world’s best place to live and work".

The half-yearly study by the Department of Economic Development, also known as Dubai Economy, underlined a significant improvement in the businesses environment, as licensing activity surpassed pre-pandemic levels to a record, according to the statement.

A total of 31,000 licences were issued during the first six months of this year, a 77 per cent growth from the same period in 2020, when 17,478 licences were issued. The record growth is largely attributable to government measures taken to “ensure business continuity”, further simplifying official procedures for businesses.

The economy of Dubai, the commercial and tourism hub of the Middle East, has bounced back from pandemic-driven headwinds that forced the global economy into its worst recession since the 1930s last year.

Key sectors such as tourism and real estate have made a significant recovery on the back of stimulus packages worth Dh7.1 billion ($1.93bn) since the outbreak of Covid-19 to support the economy, businesses and people. The emirate's economy is expected to grow 4 per cent this year, according to government projections released in December.

In June, Dubai reduced or cancelled fees for 88 government services to reduce financial pressures on businesses, lower the cost of living, support investors and improve the business environment in the emirate, the government said in a press release carried by the state news agency Wam at the time.

Sheikh Mohammed bin Rashid, Vice President and Ruler of Dubai, in June also launched new initiatives to support family companies, help start-ups and attract more skilled workers to the UAE.

Business confidence in Dubai has risen to a seven-year peak as companies in the emirate expect conditions to improve ahead of Expo 2020, according to a survey by the Dubai Chamber of Commerce & Industry.

The measures, such as full ownership for foreign investors, have also helped in boosting foreign direct investment into key sectors of the emirate and raised its global competitiveness in line with its goals for the next 50 years.

Invest in Dubai, a digital platform for establishing businesses in the emirate, which was launched in February, contributed to 25 per cent of new licences issued during the past five months. A total of 37 per cent of the new investors from 117 nationalities belonged to the 26-to-35 age group while another 35 per cent were in 36-to-45 bracket, according to Dubai Economy,

The Bur Dubai area of the emirate accounted for the largest share (19,931) of new licences followed by Deira (11,008). The report also pointed to a recovery in commercial activity in the Naif and Al Ras areas with 723 new licences, the highest level since 2016, according to the report.

“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,” 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.”

The restaurants and cafes segment of the economy saw 1,153 new licences, a growth of 92 per cent from the same period last year. More than 340 new licences, including 20 new hotels, were issued in Dubai in the first half of this year.

In the gold segment, new licences grew by 102 per cent to 204. The real estate sector registered the highest growth of 186 per cent with 487 new licences, according to the report.

Investment activity in Dubai also improved significantly during the first half of the year with the entry of 246 investment companies, an 80 per cent annual growth. Activities in this sector included investments in commercial projects, the establishment and management of ventures, in addition to projects in the industrial, agricultural, health services and energy sectors.

The transport, shipping and warehousing sector registered 872 new licenses, a 105 per cent year-on-year increase, Dubai economy said.