Dubai issues 24,662 new business licenses in Q1 2022 – News

Business registration and licensing transactions increased by 36% in the first quarter of 2022, reflecting Dubai’s growing status as a hub for start-ups and investors from around the world

Aerial view of Sheikh Zayed Road. Analysts and economic experts said the positive growth reflects the resilience of the economy and underlines the role of the private sector as a key partner in the emirate’s growth. — File photo

Published: Sun Apr 10, 2022 3:21 PM

Dubai saw strong double-digit growth in new business licenses during the first quarter of 2022 as economic activities picked up and attracted investors from around the world, according to a report.

The emirate, which has proven its economic resilience during the pandemic, issued 24,662 new business licenses in the January-March quarter, reflecting a 58% year-on-year growth compared to the same quarter last year.

The report, compiled by the Business Registration and Licensing (BRL) sector of the DET of Dubai’s Department of Economy and Tourism (DET), says the emirate issued 15,580 licenses in the first quarter 2021.

Analysts and economic experts said the positive growth reflects the resilience of the economy and underlines the role of the private sector as a key partner in the emirate’s growth.

Atik Munshi, Managing Partner of FinExpertiza UAE, said the government of Dubai has always been very proactive and progressive in all trade matters. He said investors and the business community are aware of this fact and their confidence is translating into more business registrations in the emirate.

“A 58% year-on-year growth in new licenses for the first quarter of 2022 in Dubai is commendable, particularly as the effects of Covid on the global economy continue to wreak havoc. Dozens more are expected to be attracted to the UAE this quarter as it has proven to be the right place to do business by being neutral and impartial even in times of conflict,” Munshi said. Khaleej times on Sunday.

Professionals prefer Dubai

About 57% of new business licenses issued in the first quarter were professional and 43% were commercial, according to the report.

Bur Dubai accounted for the largest share (16,577) of new licenses issued, followed by Deira (8,066) and Hatta (19), while the main sub-regions were Al Fahidi, Al Marrar, Burj Khalifa, Dubai Investment Park 1 , Port Saeed, Al Quoz 3, Naif, Trade Center 1, Hor Al Anz East and Al Barsha 1.

Saad Maniar, a senior partner at Crowe, said the business dynamics have changed, so much so that a place like Karama has transformed from a hub of low-cost products into high-value products.

“This change is due to changing customer preferences, which demand quality and fashionable products. Thanks to the increase in population with better purchasing power, overall the business environment has improved significantly in all areas of business in Dubai,” said Maniar. Khaleej times on Sunday.

Among the legal forms of the new licenses issued, single establishment companies lead with 33%, followed by civil companies with 26% and limited liability companies with 19%. Legal forms also included single-member limited liability companies, branches of companies based in other emirates, branches of foreign companies, branches of free zone companies, branches of GCC companies, and public joint-stock companies.

Solid and promising data

The report further states that a total of 136,034 enterprise registration and licensing transactions were completed during the January to March quarter of 2022, indicating a growth of 36% compared to the same quarter of the year. last year, when the total number of transactions reached 99,741.

“The number of initial approvals reached 19,835, a growth of 43% compared to the same period last year (13,914), while commercial name reservations reached 22,112, a growth of 29 % compared to the 17,133 issued during the corresponding period last year.

Instant licensing is gaining popularity

The BRL industry reported that 7,492 instant licenses were issued in the first quarter of 2022, indicating a 310% year-on-year growth. About 1,828 licenses were issued in the same quarter of 2021, according to the report.

The Instant License service offers a convenient and easy solution for business people to obtain a business license in five minutes on the Invest in Dubai platform – – to establish and conduct business in Dubai. Businesses can obtain their business license in one step without having a lease or location for the first year.

Public-private collaboration

The DET report also highlighted the importance of close collaboration between the government and the private sectors to support economic development and the ambitious vision of Dubai and the United Arab Emirates. DET strives to provide solutions that help facilitate growth and the ease of doing business in Dubai.

“Congratulations to DET for making the process faster and less cumbersome for investors and the Instant Licensing category is one such DET initiative that is a great success,” Munshi said.

The report further states that the exceptional growth underscores the strong fundamentals, resilience and sustainability of Dubai’s economy, led by a progressive vision and a strong ability to withstand challenges and maintain a healthy growth rate.

“The substantial increase in the number of new business licenses also highlights the confidence of investors and businesses in Dubai’s growth potential in various sectors,” the report said.

Furthermore, the figures demonstrate DET’s continued efforts to realize the vision and direction of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the United Arab Emirates and Ruler of Dubai, to support productivity, growth , economic diversification, sustainability and competitiveness. in the emirate, as well as to build strategic economic sectors and provide high quality services that meet the highest international standards.

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