Easing visa, insurance, and business processes in the UAE
Originally published on Al Arabiya |
Business leaders and stakeholders have welcomed a slew of measures announced by the UAE last week – easing visa, insurance, and business processes.
To them, they have not just come at the right time but can also potentially reverse what has been described as a slowing business cycle. More importantly, these measures are likely to have a major imprint on the ease of doing business in the country.
There is also a broad agreement that much of confidence will come from stable real estate market and booming retail sector besides consolidation of the UAE’s trading hub status.
A report released by the Association of Chartered Certified Accountants and the Institute of Management Accountants late last year had said that “confidence in the UAE fell in the third quarter to its lowest level since the first quarter of 2016” even though preparations for the 2020 World Expo should support the country’s economic prospects.
A typical business cycle starts with luring companies to set up shop, something the UAE has excelled over the years. Going by anecdotal evidence, the decision announced by the UAE is likely to sustain attractiveness.
Setting up businesses
Steve Mayne, the Managing Partner at CREATIVE ZONE, says the new laws will have an immediate positive impact on the “ease of doing business” sentiment for the UAE’s entrepreneurs and small and medium enterprises (SMEs). CREATIVE ZONE is a registered company, equipping businesses with the tools to promote and grow business.
“We have helped thousands of entrepreneurs and SMEs set up their companies in the various free zones we represent, as well as mainland registrations and on an average setup around 120 new businesses per month,” Mayne says suggesting the momentum of registrations is likely to continue in the UAE.
This should calm the nerves of those holding investments awaiting bottoming out of the present business cycle. According to Mayne, reducing costs for businesses in a challenging economic climate is an extremely prudent and timely move by the UAE government.
“For example, the AED 3000 guarantee deposit saved for each employee will be better used by these businesses for immediate services that can help their business grow. We see this as an immediate impact for the economy,” he says.