Sectors most affected by price hikes in the last five years included trade, industry, real estate and logistics
Dubai Chamber is aiming to lower the cost of doing business in Dubai’s private sector by developing a new index to measure and track the cost.
The move was discussed in a meeting with the Strategic Affairs Council, chaired by Sheikh Maktoum bin Mohammed, Deputy Ruler of Dubai. It intends to promote the business environment in the emirate by creating attractive measures and legislation.
Its main objective is to identify the cost of doing business in Dubai over the last five years, the factors that have led to the cost increase and the sectors that were most affected.
The study reviewed over 3,800 federal and local legislations and 750 companies’ financial statements.
So far, the results showed that the high cost of doing business in the city over the last two years was due to the high cost of living, which consequently led to a rise in the cost of the labour force. The decrease in real estate inventory in some areas also resulted in higher rental costs.
The sectors that were most affected during the last five years included trade, industry, real estate and logistics.
The study concluded with recommended amendments to regulations and legislation to reduce the cost of doing business, and a number of other supporting initiatives.