With 31,000 business licences issued during the first six months of 2021, Dubai saw the launch of almost 250 new businesses on average every working day of the first six months of 2021. This is a momentous step towards achieving the vision and directives of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, said HH Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Dubai Crown Prince and Chairman of The Executive Council of Dubai.

The government’s swift and decisive response to Covid-19 helped Dubai successfully contain the pandemic and maintain its robust economic growth, said Sheikh Hamdan. He made the comments during the launch of Dubai Economy’s half-yearly report on business movement.

The government’s swift and decisive response to Covid-19 helped Dubai successfully contain the pandemic and maintain its robust economic growth

The report showed that licensing activity in the first six months of this year had not just surpassed pre-pandemic levels, but also surged to a historic high. From 17,478 in H1 2020, new licences grew by 77 per cent in the first half of this year, registering the highest growth rates in the history of Dubai.

The Crown Prince of Dubai cited the government’s new strategies and changes to existing policies that helped in countering the negative impact of Covid on the emirate’s business environment. https://youtu.be/7uR9TZXFlQY

The city’s business-friendly policies not only helped accelerate economic growth and reduce the cost of doing business, but the stimulus packages also enhanced investor confidence, he said.

“The @Dubai_DED report shows that Dubai has recorded its highest licensing growth in history; we have adapted to the changes brought by the pandemic by launching initiatives to reduce the cost of doing business and incentive packages for enhancing investor confidence,” tweeted Sheikh Hamdan.

If there’s one thing that Dubai does better than any other city in the world, it’s turning crisis into opportunity. Pre-empting global tectonic shifts and repositioning itself so as to welcome and embrace the future is something that the leaders of Dubai have demonstrated since time immemorial.

After the collapse of its mainstay pearl diving industry, the city reinvented itself as a hub for trade in the 1940s and 1950s. Much before the emirate stuck oil in 1966, it began a massive development drive that saw the dredging of Dubai Creek (1959) and the opening of Dubai International Airport (1960).

Since then, Dubai has on several occasions turned crisis into opportunity, most notably after the Gulf War in the 1990s and the  2008-09 financial crisis. Now, it has done it again by further refining its business-friendly policies.

“The 77% increase in commercial licenses issued in Dubai shows the emirate’s ability to turn challenges into achievements, reflecting @HHShkMohd’s conviction that successful crisis management creates new opportunities,” tweeted the Dubai Crown Prince.

“Dubai has been able to consolidate its economic fundamentals, progressive vision and ambition into a formidable force capable of withstanding challenges”

Sami Al Qamzi

https://twitter.com/Dubai_DED/status/1421859517873152004?s=20

“HH Sheikh Mohammed bin Rashid’s 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,” he said.

The record growth can be attributed to unprecedented measures that the Dubai government took recently. Among them is the option granted to foreign investors of fully owning their Dubai mainland business. Earlier, it was mandatory to have an Emirati partner with a minimum of 51 per cent stake in a non-free zone company.

Sheikh Hamdan said that the diversity of foreign investors in Dubai vindicated the UAE leaders’ focus on creating a growth-friendly and transparent investment environment across the UAE.

“The records inspire us to continue working as a team to enhance Dubai’s position as an incubator for entrepreneurs and a hub for global companies,” added Sheikh Hamdan.

Invest in Dubai Platform

According to Dubai Economy, ‘Invest in Dubai,’ the integrated digital platform for establishing a business in Dubai, which was launched last February by Sheikh Mohammed, contributed to 25 per cent of all new licences issued during the last five months. That’s 10,591 investors from 117 different nationalities.

Sami Al Qamzi, Director General of Dubai Economy, said the exceptional 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,” he said.

Hottest Dubai sectors for new businesses

The Restaurants & Cafés category saw 1,153 new licences, a growth of 92 per cent over the same period last year.

The Gold sector saw 204 new licences, a growth of 102 per cent over the first half of 2020.

Investment activity in Dubai also gained remarkable traction in H1 2021 with the entry of 246 investment firms, an 80 per cent growth over the same period of 2020.

The Real Estate sector witnessed with 487 licences being issued, a super-charged growth of 186 per cent compared to 170 licences during the same period last year.

The Tourism sector welcomed 342 licenses that included 20 new hotels (a growth of 147 per cent), in addition to various other activities, such as inbound and outbound trips. Expo 2020 and Dubai’s popularity as a major global destination are set to boost those numbers further.

The first half of 2021 also saw 12 new holding companies, bringing the total of such companies in the emirate to 216. This is testament to Dubai’s growing status as a preferred investment destination among large companies.

Transport, Shipping & Warehousing, a prominent sector linked to trade, saw 872 new licences in H1 2021, a 105 per cent growth over the corresponding period in 2020.

The medical and pharmaceutical sector also witnessed a steep rise in the number of licenses issued (196), growing 120 per cent over the first half of 2020. Two new hospitals, as well as clinics, rehabilitation centres, laboratories, and pharmaceutical production units were among the facilities licenced. The growth in this sector reflects the development of medical tourism in the UAE, the expanding healthcare coverage in Dubai, and the growing reliance on the local industry for medicines and medical supplies.