There is firm that supports new companies to set up in UAE and it says that entrepreneurs enquiries regarding opening businesses in UAE have escalated by 20% in the 1st half of 2019. It says government-led initiatives are one of the most important causes behind the increase.
Meet Joshi ,CEO of UAE-based Flying Colours, which has been in operation for over 15 years, said that the with new visa and licensing regulations it has become really easy to start a new business.
He also stated that the UAE was vibrant, but it was also solid and had a proved track record, which was why a lot of people were attracted to opening businesses in the country.
He added that at that time they were receiving 800 to 1,000 enquiries every month, which was 20% higher than the previous year.
Joshi also said that it was because of the increase in interest that government regulations and long term visas for the investors were lead to easiness, and that the measures sent positive messages for entrepreneurs.
He added that the new regulations by the Department of Economic Development for instant license issue and licenses to be allowed on desk spaces had proved to be really helpful for compressing costs for a lot of businesses. Also, employment visa fees relaxation by the Ministry of Labour, along with totally removing labor deposit, had also aided companies compress their hiring costs. The new 10-year and 5-year residence announcement of visas and announcement regarding certain sectors allowing 100% ownership had also got people interested in opening new businesses.
According to Joshi, a lot of enquiries are from abroad, having a range of businesses that covers several sectors.
He also stated that the total inquiries were a mix of international and local. At least 30% of them were international, mostly from countries like Pakistan, Africa, India, China and UK.The hot favorites had always been trading, tourism and software/information technology. Aside from those, they had also seen an elevation in consultancy services [management/ tax/human resources/information technology], Food sector [restaurants, catering] and E-Commerce.