Bahrain
Kuwait
Oman
Qatar
Saudi Arabia
UAE
Print
Email
Discuss this article (5 Comments)New start-ups double after AED150,000 rule scrapped
by This email address is being protected from spam bots, you need Javascript enabled to view it on Monday, 02 November 2009
MONEY MATTERS: New company registrations have more than doubled since the scrapping of a rule requiring start-up capital of AED150,000.
The number of new company registrations in Abu Dhabi has doubled since the abolition of a rule requiring a start-up capital of AED150,000, new figures show.
Since the announcement in August of the scrapping of the minimum capital requirement, more than twice the number of new businesses have been registered in the UAE capital compared to the same period last year, according to data from the Abu Dhabi Chamber of Commerce and Industry.
A total of 2,063 new firms have opened, compared to the 974 that started in the same period in 2008, UAE daily The National reported on Monday.
Previously, entrepreneurs would only be granted business licences if they had a bank balance of at least AED150,000.
Back in August, Sultan bin Saeed Al Mansouri, UAE Minister of Economy, called it "a positive step to attract more investments to the country".
He added: "This decree underlines our wise leadership's vision and strategy aiming at developing the investment environment in the UAE, diversifying sectors and activities of our economy to ensure economic prosperity and welfare to the UAE community."
He said the move reflected the federal government's stance to boost the investment environment.
The issuing of the decree also aimed to limit bureaucratic procedures as the investor won't need any bank certificates prior to setting up the business.
Mohammed al Hameli, the director general of the Abu Dhabi Chamber of Commerce, told the paper: “The decision to change the law has made it easier for small companies to start.”
He added: “Before, the system of registering a company was slow. Now it is much easier.”
READERS' COMMENTS
Disclaimer: The views expressed here by our readers are not necessarily shared by ArabianBusiness.com or its employees.
What About Other Emirates?
Posted by Skand Bhargava on Monday 2 November 2009 at 17:53 UAE time
This is only implemented in Abu Dhabi - although at the time of declaration, the media had claimed it is for all the Emirates.
Posted by Skand Bhargava on Monday 2 November 2009 at 17:53 UAE time
This is only implemented in Abu Dhabi - although at the time of declaration, the media had claimed it is for all the Emirates.
Biggest hurdle is....
Posted by Kp Morgan on Monday 2 November 2009 at 12:56 UAE time
Without a doubt the prices of an office space!
140K a year for a 3 person office in Dubai Internet City??? Come on!!
If they want to have success, make the freezone cheaper to start up in, and cut the cost of having an office, then you will see a boom....
Posted by Kp Morgan on Monday 2 November 2009 at 12:56 UAE time
Without a doubt the prices of an office space!
140K a year for a 3 person office in Dubai Internet City??? Come on!!
If they want to have success, make the freezone cheaper to start up in, and cut the cost of having an office, then you will see a boom....
also
Posted by His Excellency Dr Paul, Dubai, UAE on Monday 2 November 2009 at 10:42 UAE time
Very often the demise of a bigger company that might see 100 people lose their jobs will see 5 of them start up on their own. Recessions and job losses often result in company registration spikes.
The 150k rule undoubtedly makes it easier but the job losses across the UAE would quite likely increase registrations too in other parts of the UAE that have not reduced the cash requirements. It would be interesting to compare the two to see the affect it has.
One must also consider what measures could be taken to reduce the costs for existing businesses. It makes no sense to have new small start ups at the same time established businesses are folding due to high costs.
Posted by His Excellency Dr Paul, Dubai, UAE on Monday 2 November 2009 at 10:42 UAE time
Very often the demise of a bigger company that might see 100 people lose their jobs will see 5 of them start up on their own. Recessions and job losses often result in company registration spikes.
The 150k rule undoubtedly makes it easier but the job losses across the UAE would quite likely increase registrations too in other parts of the UAE that have not reduced the cash requirements. It would be interesting to compare the two to see the affect it has.
One must also consider what measures could be taken to reduce the costs for existing businesses. It makes no sense to have new small start ups at the same time established businesses are folding due to high costs.
150k rule
Posted by BMCT on Monday 2 November 2009 at 09:07 UAE time
i fully agree with Martin KLP
Posted by BMCT on Monday 2 November 2009 at 09:07 UAE time
i fully agree with Martin KLP
Click here to post a comment
MORE FROM ARABIANBUSINESS.COM
TOP IN MIDDLE EAST POLITICS & ECONOMICS
TOP MIDDLE EAST BUSINESS STORIES
ALSO IN MIDDLE EAST POLITICS & ECONOMICS
LATEST MIDDLE EAST BUSINESS NEWS
SHARE PRICE CHECK
RELATED STORIES
Gulf Rebound
3 stories- UAE air travellers planning more long haul trips - survey
19 Nov '09 | News - GCC helping to lead global economic recovery
19 Nov '09 | News - UAE freezone business set-up inquiries seen rising
19 Nov '09 | News
Abu Dhabi Chamber of Commerce & Industry (ADCCI)
| 17 stories- Abu Dhabi's 5% rent cap still in place
21 Jan '09 | News - Abu Dhabi rents 'up by 150%'
14 Dec '08 | News
Mobile
