Data from Dubai Department of Economic Development highlights growth environment of Dubai despite the global financial crisis
Emirate's value proposition and fundamentals remain attractive to investors, entrepreneurs, says Director General of DED
DED implementing new programmes to be more attuned to local business, consumer needs
Dubai, February 03, 2009: In the face of the global economic crisis, Dubai's new business licenses recorded a small increase in the fourth quarter of 2008. The Emirate has continued the growth story with more than 429 new business licences issued in the first fortnight of 2009, a clear indication of the continued resilience of the economy of Dubai and investors' confidence.
The Q4 2008 statistics, released today by the Dubai Department of Economic Development (DED) - the official source of information on businesses in Dubai - show a 3.3 per cent increase in the number of new business licenses issued over the same period in 2007. The 3,503 licenses issued between October and December 2008 followed the steady growth in previous quarters. By the end of 2008, there were 134,379 businesses in operation in Dubai.
During the last quarter of 2008, a total of 313 licences have been cancelled, 64 less than the number of cancellations in 2007, highlighting normal patterns in business behaviour. The rate of cancellations dropped from 11 per cent in 2007 to 9 per cent in 2008. Commercial licences witnessed the largest cancellation - 216 while the number of professional licences cancelled was 90.
His Excellency Mr Sami Dhaen Al Qamzi, Director General of the Dubai Department of Economic Development, said the statistics underscored the firm foundations and promise of the emirate's economy.
"The fundamentals of the city - its pro-business environment, unmatched location, government responsiveness and transparency, world-class infrastructure and quality of life - continue to be strong. Investors see and seek out the strengths and unique value propositions that Dubai offers, and this is reflected in the levels of new business registrations," Mr Al Qamzi said.
He added: "The government of Dubai will continue its policies to support businesses and entrepreneurs who drive change throughout the economy with new products, processes, ways of doing business and jobs. This model has proven time and again its worth in creating jobs and generating wealth. However, we will not sit on our laurels: in the months to come, and under the leadership and guidance of His Highness Sheikh Mohammed Bin Rashid Al Maktoum, UAE Vice President & Prime Minister and Ruler of Dubai, we will take new steps to ensure our policies remain as sharply focused as ever, and equally importantly, responsive to the changing global conditions. We look forward to working much more closely with the business community and consumers in the coming weeks and months."
Apart from 429 new business licenses issued during the period January 1 - 15, 2009, an additional 50 Intlaq licenses were issued to UAE nationals to set up home-based businesses.
Commercial licenses - focused on trade - made up the majority of new licenses issued during both periods, contributing approximately 80 per cent. Professional licenses, primarily associated with services, accounted for between 17 and 20 per cent, with tourism and industrial licenses making up the remainder.
Mr Mohammed Shael, Chief Business Registration & Licensing Officer, said: "The data reported in the Quarterly Report on the business environment in Dubai reflect a clear vote of confidence in the Emirate's strengths in attracting new entrepreneurs. However, we are reviewing our licensing procedures and processes to make them even more business-friendly."
In keeping with the city's tradition, DED is in the process of introducing a number of measures to shield its economy from the global economic crisis.
-Ends-
About Department of Economic Development (DED):
The Department of Economic Development (DED) was established in March 1992, with the objective to organise, regulate and boost trade and industry within the Emirate of Dubai. The DED has moulded its mission of building a futuristic establishment, in accordance with the vision of the Government of Dubai and in the light of globalisation and the requirements of a digital economy. One of its key functions is to encourage local and foreign investments in commercial and industrial projects, and create the appropriate environment for investors.
The DED's other functions comprise a wide range of regulatory activities including the preparation and maintenance of a commercial register and the supervision of all organisations. The DED is responsible for regulating the affairs of commercial agents and brokers and commercial advertising offices, in addition to overseeing and controlling the insurance industry in the Emirate. Examining the participation of the government in the private sector and representing the government in companies where it has a stake, also comes under the purview of the DED.
For further information, please contact:
Angela Maglieri
Chief Communications Officer
Department of Economic Development
Tel: (971 4) 202 0315
Email: amaglieri@dubaided.gov.ae
Nedal Alasaad/Nafisa Marzouki
ASDA'A Burson-Marsteller
Tel: (971 4) 3344550
Email: n.alasaad@asdaa.com, n.marzouki@asdaa.com
© Press Release 2009
