Business license issuances in Dubai grew significantly in the opening six months of 2021 compared to the first half last year when the pandemic ground operations to a halt.
Thirty-one thousand licenses were issued in H1 2021, a growth of 77 percent compared to the same period in 2020 when 17,478 licenses were issued, state news agency WAM reported.
Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and chairman of Dubai Executive Council, said the government adopted a set of new strategic approaches and amended policies to accelerate economic growth and reduce the cost of doing business, apart from offering stimulus packages to enhance business and investor confidence.
Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and chairman of Dubai Executive Council.
Dubai weathered the pandemic by implementing a strict lockdown early on that ultimately allowed it to be one of the first city’s globally to reopen safely.
And to accelerate recovery the city has launched a slew of new initiatives – from new incubators and support for SMEs and start-ups to allowing 100 percent foreign ownership of companies – that have fuelled economic activity.
Sheikh Hamdan said that the new government plans are in line with Sheikh Mohammed bin Rashid’s vision, and that vision has enabled Dubai to successfully overcome the repercussions of Covid-19, accelerate its recovery and reinforce its status as a global hub and the world’s best place to live and work.
“The records we have achieved inspire us to continue working as one team to further enhance Dubai’s position as an incubator for entrepreneurs and a hub for global companies by identifying new opportunities for investors to accomplish their ambitions and building innovative development pathways to reinforce Dubai’s global leadership in all fields,” Sheikh Hamdan said.
According to Dubai Economy, Invest in Dubai, the integrated digital platform for establishing a business in Dubai, contributed to 25 percent of new licenses issued during the last five months. Together, the 25 percent of licenses account for 10,591 investors from 117 different nationalities. A total of 37 percent of the new investors that came through ‘Invest in Dubai’ belonged to the 26-35 age group while another 35 percent were aged 36-45.
According to the latest report on new licenses from the ‘Business Map’ of Dubai Economy, Bur Dubai area accounted for the largest share (19,931) of new licenses issued in H1 2021 followed by Deira (11,008).
The report also pointed to a return and recovery of commercial activity in the areas of Naif and Al Ras, as new licenses in these two areas in H1 2021 (723) was the highest since 2016 and represented a 75 percent growth compared to the same period of 2020. The total number of operating licenses in Naif and Al Ras reached 4,833 in H1 2021, most of which (58 percent) are for commercial activities.
Sami Al Qamzi, director-general of Dubai Economy, said the 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.
“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,” Al Qamzi said.
The half-yearly report of Dubai Economy showed a remarkable recovery in many vital activities and sectors during the first half of 2021. The restaurants and cafes category saw 1,153 new licenses, a growth of 92 percent compared to the same period last year. While the tourism sector welcomed 342 licenses that included 20 new hotels (a growth of 147 percent), in addition to various other activities, such as inbound and outbound trips.
The gold sector also witnessed strong growth of 102 percent compared to the first half of 2020. A total of 204 new licenses were issued in H1 2021 in this sector, which is currently seeing a global rebound.
The real estate sector experienced the highest growth of 186 percent with 487 licenses being issued, compared to 170 licenses for the same period last year. Activities included brokerage of sale and purchase and real estate rentals.
Investment activity in Dubai also gained impressive traction in H1 2021 with the entry of 246 investment firms, an 80 percent growth compared to the same period of 2020. Activities included investments in commercial projects as well as their establishment and management, in addition to projects in the industrial, agricultural, health services and energy sectors.
The first half of the year saw the creation of 12 new holding companies, bringing the total of such companies in the emirate to 216.
Transport, shipping and warehousing, a prominent sector linked to internal and external trade, saw 872 new licenses in H1 2021, a 105 percent growth from the corresponding period in 2020.
And the medical and pharmaceutical sector also witnessed a steep rise in the number of licenses issued (196), growing 120 percent, compared to the first half of 2020. Two new hospitals, as well as clinics, rehabilitation centres, laboratories, and pharmaceutical production units were among the facilities licensed.
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