Dubai officials said on Saturday it will implement a new company licence initiative by the end of 2012 aimed at improving the process of doing business in the emirate.
The Department of Economic Development (DED) said in a statement that it will bring in the 120 days hassle free licence in an effort to promote the emirate’s competitiveness.
The initiative will simplify procedures and facilitate business in Dubai, the DED said.
The 120 days licence allows a businessman or woman to start a business immediately and complete the rest of the licencing requirements, such as approvals from other government authorities concerned, within the next 120 days.
“The 120 days licence is part of DED’s efforts to enable businesses to make full use of the advantages of Dubai and improve the emirate’s ranking in the Doing Business Report of the World Bank,” said Mohammed Shael, CEO of the Business Registration and Licensing division at DED.
The new initiative will allow investors to have their licences issued immediately from DED depending on the risk factors of the intended business activity.
Business activities in Dubai have been categorised as No-Risk, Low Risk and High-Risk for the sake of evaluating the new business, the DED added.
“When a businessman approaches DED for a licence, a 120 days licence is issued immediately, on completion of the necessary procedures, if the specific business activity falls under the No-Risk or Low-Risk categories,” said Shael.
More than 90 percent of the businesses in the emirate are rated No-Risk or Low-Risk and therefore a vast majority of businesses stand to benefit from the 120 days licence, he added.
A total of 14,360 business licences were issued in Dubai in 2011, the DED said last month.
The professional services sector, at seven percent of the total, accounted for the most number of licences last year, followed by the tourism sector at five percent.
The total number issued compared to 13,817 licences granted in 2010.
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