Ease of doing business draws foreign companies to Dubai
dubai — British and Indian companies account for more than 42 per cent of the total branches of foreign firms operating in Dubai as the emirate continued to attract new international businesses thanks to its world class ease of doing environment.
Data released by the Business Registration & Licensing (BRL) sector in the Department of Economic Development (DED) shows that British companies ranked first, accounting for 28.6 per cent of the total branches of foreign companies, followed by Indian companies at 13.9 per cent, and American companies at 12.2 per cent.
In a statement, DED said there has been an increase in the number of branches of foreign companies operating in Dubai. While branches of foreign firms increased to 1,985, the number of branches of GCC companies rose to 833.
Walid Abdel Malik, director of Business Registration Division in BRL sector, said the latest data reflected the attractiveness of Dubai globally as well as regionally, “as it provides a businessfriendly environment supported by a modern and integrated system that saves the time and effort of the business community.”
“This is also due to the modern legislative environment that allows businesses to work leisurely and take advantage of the promising opportunities in the local and regional markets,” said Malik.
Analysts said the increasing appeal of Dubai as a global business hub is evident from the 20 per cent rise to 2,046 in new licences issued in January this year on the back of a rebound in non-oil sector growth. As overall growth of Dubai’s nonoil private sector economy quickened in January, firms were at their most optimistic regarding future growth prospects since at least 2012, a recent Emirates NBD Dubai Economy Tracker Index report said. According to BRL, in terms of branches of GCC companies, Kuwaiti companies ranked first, accounting for 63.3 per cent of the total branches of GCC companies, followed by Saudi Arabian companies at by 23.3 per cent, and Bahrain companies at 19.1 per cent.
The report also highlighted the distribution of economic activities with “Representative office” coming first followed by “Management Studies and Consulting”; “Architectural Engineering Consulting”; “Building construction engineering services”; and “Marketing consultancy and studies.
In terms of distribution of economic activities among the branches of GCC companies, “Restaurant” came first followed by “Perfumes and Cosmetics”; “Shoes”; “Handbags and Leather products”; and “Watches and spare parts”.
Malik said that a branch of a foreign company, which is 100 per cent owned by the parent company with identical trade name, can practice professional activities as well as specified commercial and industrial activities. An approval from the Ministry of Economy is required for undertaking commercial and industrial activities.
A branch of a GCC-based Company must be 100 per cent owned by the parent company. The trade name of the branch must be identical to that of the parent company. The trade name of the parent company must be changed in case the same name has been previously registered in Dubai by any other person, BRL said in a statement.