- July 30, 2021
- Posted by: Waqas Siddiqui
- Category: Business & Economy
Abu Dhabi Reduces Private Sector Business Setup Fees by 90%
UAE – As a part of the ongoing efforts to support the private sector, Abu Dhabi has recently announced that it would reduce business setup fees, as well as licence renewal fees, to AED 1,000 (USD 272), which is approximately 90% reduction from the existing business setup fees. The announcement was made by the Abu Dhabi Department of Economic Development (ADDED) in collaboration with other government entities such as Abu Dhabi Chamber of Commerce and Industry.
The fee reduction will be applicable for six activities in the business license and will cover all fees from Abu Dhabi Government entities such as ADDED, the Department of Municipalities and Transport, membership fees for Abu Dhabi Chamber, CoC (Certificate of Conformity) issuance fee and the other fees required by Abu Dhabi regulating entities based on the type of business.
Impact of Business Setup Fee Reduction on Abu Dhabi Economy
The initiative to reduce the fees will enhance the ease of doing business in Abu Dhabi and the UAE. It will also increase Abu Dhabi’s competitiveness regionally and internationally. The introduction of a fixed fee will increase transparency and reduce administration for investors. It also supports Abu Dhabi Government’s efforts to create an ideal business environment for the private sector, particularly for Micro, Small and Medium Enterprises (SMEs). The business fee reduction is among one of the several initiatives for the new economic strategy to create a thriving business environment that encourages growth and innovation.
Abu Dhabi Government Support for UAE Businesses
The Abu Dhabi government has also allocated AED 3 billion (USD 816.8 million) credit guarantee scheme to SMEs through the several Accelerator Programme and introduced relief funds, subsidies and waivers to support the businesses in the Emirate. Along with the financial incentives and public incentives, Abu Dhabi in collaboration with other organizations are working towards economic development by identifying gaps and opportunities in the business ecosystem and to connect people from the public and private sectors, and across different industries. Abu Dhabi is currently focusing on improving areas that collide with the interest of national security, development priorities and the competitive advantages found in the Emirate.
Investment Opportunities in Abu Dhabi – UAE
UAE based investors are confident in the government’s commitment in providing an effective environment for their businesses to grow in terms of infrastructure, safety, subsidies and other waivers. The restructuring of fees will also help in ease of starting and managing a business for new business owners, entrepreneurs and investors. The UAE government has also provided a clear path to acquiring citizenship for international investors who excel at investing in key sectors. With an eye to the future, Abu Dhabi’s development strategy continues to focus on inclusive growth, with a particular attention on expanding opportunities for younger generations.
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