BOOSTING BUSINESS
Wide-ranging policy measures will make economy more competitive while significantly improving social welfare
All you need to know about the measures to drive the economy, enhance UAE’s global competitiveness
Last week’s announcement that private companies in the country would no longer have to provide a Dh3,000 bank guarantee to recruit each new employee is just the latest of a series of measures aimed at transforming the UAE’s economy.
The packages announced this year are an indication that the objectives announced in a series of medium- and long-term visions are becoming reality. The UAE Vision 2021 calls for the development of a competitive knowledge-based economy, and the announcement of 10-year visas for scientists, and investors and professionals in the medical, scientific, research and technical fields is an important step in attracting the human capital necessary to achieve this.
The Abu Dhabi Vision 2030 and the Dubai Industrial Strategy 2030 further set out the ambitions for developing the UAE’s non-oil sector to create a diverse, forward-thinking, innovative business ecosystem. What is notable about the measures announced so far this year is how tightly focused they are on making business easier to conduct in the UAE — a country that is already ranked the 21st top nation on the World Bank’s latest Ease of Doing Business report.
Measures announced cut down on red tape, relax business ownership rules, reduce registration and operating costs. They make it easier — and cheaper — to recruit. In addition, the support and encouragement for innovation and start-ups help drive a crucial sector of the economy. It’s estimated that small- and medium- enterprises (SMEs) contribute 40 per cent to Dubai’s GDP and employ 42 per cent of the workforce. Many of the measures announced will disproportionately benefit SMEs, who often suffer from low liquidity and do not usually have the resources to employ staff to deal exclusively with paperwork. Measures that benefit business tend to benefit SMEs even more.
Upbeat outlook
As noted by PWC in a recent briefing, the developments also continue to show the UAE’s commitment to further developing, growing and easing the way business is conducted. “It is clear that there is real momentum and a head of steam building in both Abu Dhabi and Dubai to move things forwards and stimulate local economies as quickly as possible,” the briefing said.
It is also clear that although the measures announced so far are wide-ranging, we will see further announcements in the future. “I think the dialogue is continuing,” Suresh Kumar, President of the Indian Business and Professional Council [IBPC] of Dubai, said. “They certainly want to revisit this in a few months’ time simply to see how much of an impact this has created.”