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Wed 21 Jan 2009 07:50 AM

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New business growth in Dubai despite global crisis

Top gov't advisor tells business leaders that new company licences are on the up.

Dubai is continuing to see a growth in the number of new businesses setting up in the emirate, despite the impact of the global economic crisis, it has been claimed.

The city has also seen increased numbers of airline passenger arrivals, according to the Mohamed Alabbar, chairman of The Advisory Council of the government of Dubai.

Addressing more than 250 private business leaders in Dubai, he said in November and December of 2008, the government issued 1,285 new business licences per month, up from 1,045 in the same period in 2007.

During November and December of 2008, the government cancelled 148 licenses per month, compared to 131 licences cancelled per month during the same period the previous year.

Alabbar also said airline passenger arrivals into Dubai had grown by an average of five percent in the past two months.

The number of passenger arrivals, not including transit passengers, averaged more than 1.5 million per month in the last two months of 2008.

Alabbar also spoke about the emirate's real estate market, saying the most recent projections provided by the Real Estate Regulatory Agency (RERA) showed that 28,000 new homes are expected to come onto the market in Dubai this year.

Supply is forecast to be in line with demand this year, said Alabbar.

He added: “Here in Dubai, we represent the trade, investment and knowledge hub for the Gulf, which has a population of 40 million and an economy that has grown three-fold in only five years to $1 trillion.

“The challenges that confront us and our young, energetic population here in Dubai and the wider region are very much cyclical in nature.

"But we must adjust to such movement, and are already making the structural changes necessary to best manage this new economic reality.

"The Dubai government has already set an example with the recent announcement of its budget focused on increased public spending, with no new government fees or taxes.

“No one has ever accused Dubai of being afraid to think big or new or different. We have to maintain that spirit of bold innovation – especially now, during this time of great challenges.

"When the world is in the midst of a crisis of confidence, as it is today, confident cities with confident leadership are critical. We have to continue to show the world that some things are possible only in Dubai.”

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TN 11 years ago

Is this blind ignorance of the situation or just more spin? The PRO we use for our company has helped process dozens of these so-called "new businesses" in the last two months. The majority of them, however, are expats who have lost their jobs and are trying to "go it on their own" and/or are having to sponsor themselves so they can stay in the country until the school year ends. Good luck to them, but how many will still be around in six month's time when their savings have run out.

joe karcia 11 years ago

Also rents will increase this year for majority of residents who have been living in same apartment paying below average index rate. This will contribute towards more income for Dubai through 5% municipality fees. Now Dubai is confident in meeting its budget. Thanks to common men and let us squeeze them more. Who cares about middle class people.

Martin 11 years ago

"an economy that has grown three-fold in only five years" and a stock market that has crashed three-fold within 5 years. "bold innovation", "some things are possible only in Dubai.” Sorry cannot type, just laughing so hard.

James 11 years ago

In economies that turn down, more small businesses often is seen due to a decreasing job market. It does not necessarily imply substantial or even moderate growth for the economy. There are too many other indicators that offset this positive number that shows the economy is in a serious downturn. Amazing how all the government officials avoid addressing it. Must be a cultural artifact.

allen 11 years ago

Dubai has number of growing business.The recession all over the globe affects dubai too.