Dubai Government to assist private sector and boost economic growth
The plans include proposals to allocate 20 per cent of government tenders to small and medium-sized businesses, developing low-cost family tourism systems through a timeshare basis, and enact a mortgage law to enhance demand and prices in the real estate sector, according to Gulf News.
The initiatives will pertain to exempting businesses from fines and trade violations; reducing operational costs in the retail sector; supporting local production and procurement; and attracting the best start-ups to Dubai as well as promoting them.
“The directives also show the leaderships keenness in dealing constructively with all local and international economic variables and seize new investment and development opportunities towards creating a stronger economy, more efficient environment and improved work mechanisms to provide everyone with an advanced, high quality living,” said Sami Al Qamzi, Director General of the Department of Economic Development (DED) in Dubai, as reported by Gulf News.
Construction and wholesale and retail sectors for March signalled an improvement in business conditions across Dubais non-oil private sector, according to Dubai Economy Tracker Index (DET) data, which also showed employment slipped into contraction for the first time since February last year; the new incentives are expected to boost job creation.
Reforms initiated by each government department:
Department of Finance
- Pay government fees by instalment; allocate 20 per cent of government tenders for SMEs and collect three- and four- stars hotels fees on a half-yearly basis instead of monthly Dubai Department of Economic Development (DED).
- Waive companies of fines and trade violations; renew commercial licences; reduce the operational cost of the retail sector; support local purchase by encouraging local production; and attract 1,000 emerging growth companies in Dubai, especially in the field of technology The Department of Tourism and Commerce Marketing (DTCM).
- Increase the number of visitors at a low cost by attracting 10 per cent of the transit passengers, constituting an additional one million visitors annually.
- Promote family tourism using the time share system. Increase the number of family tourists from 70,000 to 150,000 annually, in addition to encouraging tourists to stay longer and make frequent visits.
Dubai World Trade Centre
- Attract foreign investment from Southeast Asia, and benefit from financial flows, estimated at $200 billion.
- Strengthen the role of the DIFC and facilitate the movement of financial products and increase the volume of financial investments in Dubai.
Dubai Land Department
- Develop a mortgage and finance law.
- Revitalise investment in the real estate sector and attract foreign investment portfolios.
Dubai Chamber of Commerce and Industry
- Reduce the cost of doing business by reviewing fees and local laws to reduce the material burden on companies.
- Set up consultative council as part of enhancing the contribution of international companies to boost their contribution to shaping the legislative atmosphere and investment infrastructure and enhance their role in building the local economy while focusing on creative industries.
The Dubai Islamic Economy Development Centre (DIEDC)
- Develop and improve the Sukuk market, increase Sukuk issuance and listing in Dubai, develop new platforms including retail Sukuk and the Secondary Sukuk Market for SMEs.
Ports, Customs and Free Zone Corporation
- Conducting pre-customs clearance agreements and approved operator system, reduce the time required for foreign trade procedures; activate shipping and air freight and boost and increase the volume of foreign trade by about AED27 billion.
- Establish Aluminium Derivatives Complex to draw the largest international companies operating in the field of aluminium derivatives.
- Establish a specialised centre for the registration of private aircraft, exempt private planes from prior permits for landing to make Dubai a global centre for the registration of private aircraft by offering a package of integrated and distinctive initiatives.
Dubai Free Zones Council
- Creating e-commerce regulations and set conditions and controls to find the best ways to attract international companies and encourage them to work in Dubai and its free zones.