ADCCI to see surge in registration of new companies

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Abu Dhabi Chamber of Commerce and IndustryAbu Dhabi Chamber of Commerce and Industry (ADCCIADCCI) expects the number of new companies registered with it to double over the coming period due to amendments made to some provisions of the companies law.

The amendments were made in a recent decree issued by President His Highness Sheikh Khalifa bin Zayed Al Nahyan, Ruler of Abu Dhabi.

Mohammed Al Hameli, Director-General of ADCCIADCCI, told Emirates Business yesterday the decree gives the UAE a competitive edge and will encourage investment, especially by foreigners. It will also double trade licences registered at the country's chambers of commerce and industry, he added.

Al Hameli said foreign investment will witness a big leap over the coming period thanks to the support it is given, especially now that most of the financial and administrative obstacles facing foreign investment have been removed.

The decree will boost foreign investors' confidence in the UAE. He said ADCCIADCCI was the first to enforce the decree, and the coming days will see a big rise in the number of trading licences being issued in Abu Dhabi.

Al Hameli said the decree came at the right time as it will end some negative aspects, especially multiple procedures involved in the issue of trading licences. The investor no longer needs any bank certificate to set up a trading company. The decree will save the investor many administrative steps, he said.

Al Hameli said the decree will show quick results, leading to an increase in the number of trading licences, especially in Abu Dhabi.

The earlier law set the capital of the company with limited liability at Dh150,000, which used to lead to disputes among partners and eventually the cancellation of the trading licence. But following the amendment, there will be full freedom for partners to set the proper capital, he added.

Al Hameli said this will encourage small investors to enter the market.

The new decree will enable the UAE to avoid the fallout of the global financial crisis, said Al Hameli. The decree is aimed at small and medium enterprises, which are among the most important and promising economic sectors where nationals and foreigners play a big role in encouraging the growth of the economy, he added.

Operational costs will go down while profits and returns for the sector will increase, he said.

Al Hameli said the chamber has taken major steps to cut down the procedures for obtaining a licence and in this regard a customer service centre has been set up.

By Abdel Hai Mohamad

© Emirates Business 24/7 2009