How UAE business reforms promoting entrepreneurs in business formation?
The United Arab Emirates, which is now enjoying the status of business, trade and financial hub in the region of the Middle East, used to depend solely on oil export to earn GDP to execute other lifestyle essentials. Despite making huge GDP after exporting oil and petroleum products, authorities identified that they can’t rely on the same resources in the long term. No matter how huge these reservoirs are, they will be finished someday. After considering the scarcity of this natural resource, they started investing petrodollars to reduce Emirate’s dependency from oil export. They started paying attention building up infrastructure facilities, residential and commercial real estate projects, commuting facilities, airports and highways to transform its image into a well-developed country. They facilitated foreign entrepreneurs, investors and manufacturers to launch setups. Anyone who is willing to start up a brand new setup or planning to open a franchise can conveniently get an investor visa, as long as he is not involved in any kind of crime and legal obligation. The UAE has made regular efforts to facilitate entrepreneurs to choose the land of United Arab Emirates. According to an international organisation of “Doing Business (DB) Project” the Government of UAE also make several strategic efforts and business reforms to empower local and foreign entrepreneurs to launch their startup. The organisation measures types of trade regulation in 11 areas affecting domestic small and medium-size enterprises.
Here I am discussing a brief about business reforms, DB Project documented in their report that the UAE has made yet to promote and facilitate startup owners to establish business their setup.
In the year 2008 and 2009, State establishments allowed publishing of the company record at the Department of Economic Development, later in next established a new private credit bureau, which is responsible and eligible to record loan data, guarantee borrowers and give them rights to inspect their own credit data in the new bureau. Besides this, they also reduce paperwork after introducing an electronic filing system to complete court documents.
In the year 2010, the authorities paid extra attention to further simplify the process of starting up a setup, after releasing the limitations of possessing minimum capital requirements and documental proofs of deposits. With lesser documentation requirements, startups also benefited with the online system issuing no-objection certificate, construction permits and completion certificates. Moreover, trading across borders also becomes easier after increasing the container space at Dubai terminal. Besides this, banking sector improvements and elimination of receipt requirements improve overall performance.
In the years of 2011 and 2012, State Government further updated the system to issue loans to borrowers. The legal framework was made to operate the private credit bureau and to collect credit information from financial institutions. They also came up with a new law that allowed the central bank to establish a federal credit bureau. Mirsal 2 a new comprehensive custom system was also inaugurated in 2011 to speed up the trading activity. In next year, they merged the document requirements of a company registration with the Dubai Chamber of Commerce and Industry and obtaining the trading licence from the Department of Economic Development. Enterprise owners don’t need to submit documents separately to obtain these documents.
In the year 2013 and 2014, Official also takes multiple steps for further improvements in the trade sector. They free up enterprises to prepare a name board in English and Arabic both. Moreover, implementation of online filing and payment system make tax payments easier. The Dubai Electricity and Water Authority efficiently trim down the steps to obtain an electricity connection. They introduce an electronic system, which is called one-window, one step” system. In addition to that, they also exempt the need of site inspection, which was necessary to get the new connection.
In year 2015 and 2016, after receiving an increased influx of businessmen and investors, administrative authorities take multiple steps to make conditions favourable to launch a setup. From property registration, construction permits, obtaining loans and electricity connection to enforcing contracts and protecting minority investors are few areas where they made improvements. New service centres are made to execute property registration process, whereas they also implemented regulatory measures to protect minority investors. Moreover, the Smart Petition Service allows applicants to track contract status.
Summary: These are few strategic business reforms UAE has been taking and practising continuously to support capitalist and investors seeking for better business opportunities in the territory.