Dubai issued 69 per cent more new business licences in the first 10 months of 2021, reflecting the high-growth opportunities in various sectors and the growing confidence in the overall economy, the Department of Economy and Tourism said.
The emirate issued 55,194 new licences in October, up from 32,626 in the same month a year ago, a strong indicator of enhanced investor confidence in Dubai’s diversified economy.
"The growth in the number of licences issued also reflects the strength of the economy, Dubai’s success in managing the impact of Covid-19, the government's agility in amending economic policies to drive economic growth, the low cost of doing business, and the easy procedures for starting businesses, all of which contributed to enhancing investor confidence in Dubai’s diversified economy," the department said on Sunday.
The number of new businesses being set up is supporting Dubai's economic momentum following the pandemic. The emirate's non-oil economy maintained its growth in October, with business conditions posting the sharpest improvement in two years, boosted by a strong rebound in new orders and Expo 2020 reviving tourism, a recent IHS Markit Dubai Purchasing Managers' Index showed earlier this month.
In August, Dubai posted a 54 per cent year-on-year increase in the number of new business licences issued. E-commerce licences – which allow business activities online and across social networking accounts – also posted solid growth in the first half of the year, up 63 per cent at 3,243 from 1,989 a year ago.
The Department of Economy and Tourism's report showed that the professional category topped the list of new business licences with a 59 per cent share, followed by commercial at 41 per cent.
Bur Dubai had the largest share (37,562) followed by Deira (17,572) and Hatta (60). The top sub-regions were Al Fahidi, Burj Khalifa, Port Saeed, Al Marrar, Trade Centre 1, Qubaisi, Al Barsha 1, Naif, Al Garhoud and Al Karama.
Sole establishment companies accounted for the bulk of legal forms of new licences with 38 per cent, followed by limited liability companies (28 per cent) and civil companies with (24 per cent).
Legal forms also included one-person LLCs, branches of companies based in other emirates, branches of foreign companies, branches of free zone companies, branches of GCC companies, general partnership companies, public shareholding companies and private joint-stock companies.
The number of business registration and licensing transactions that were completed in the first 10 months grew 17 per cent year-on-year to 233,908. Renewal transactions hit 120,120, up 3 per cent compared with the same period a year ago.
Initial approvals reached 1,703, a 44 per cent growth compared with October 2020, while commercial permits rose 9 per cent to 5,141.
Dubai merged its economy and tourism departments earlier this month in an effort to boost the emirate's competitiveness and attractiveness. Investors can obtain any trade licence or launch a business within minutes through the Invest in Dubai platform, an integrated digital business set-up portal.