- The UAE Cabinet has taken a major decisive stance in canceling or reduction of almost 1,500 government-backed costs by up to 50 percent with a vision of bolstering the competitiveness and as well sparking economic growth and as well to sustain the global financial meltdown.
- In an another round of flexing muscles over economic measures, UAE’s government have come up with a move sooner to be implemented which implies in reducing or cancellation of the federal government fees as a measure to ease up the cost of doing business, boost overall competitiveness comparatively to the emerging markets, and as well enhance its appeal to investors.
According to a statement provided by Ministry of Finance, “The government and cabinet cleared off a decision in cancellation or reduction on certain government-backed charges by up to 50 percent on about a staggering 1,500 plus core federal services for three major ministries as started from July 1st, 2019.”
This measure came into the limelight following case study of various fees structure compared to international best practices and strengthening the economic conditions braving the current global financial meltdown.
As stated by words of Younis Haji Al Khoori, undersecretary of the Ministry of Finance, “Ministry of Finance has proposed and drafted immediate measures in reduction of a major set of fees in order with setting up off a fixed ceiling on incoming revenue. It is a major move plotted for enhancement of overall global business competitiveness as well as the encouragement of services based innovation.”
This part of stringent, yet flexible series of government reforms are actually missionized to attract foreign investors, create job market, and the core reason is diversification of economy that’s away from Oil. The UAE has allowed a 100 percent foreign ownership of the companies in major 13 sectors, i.e., range from manufacturing to renewable energy, eased visa restrictions and provided incentives for small and medium enterprises (SMEs).
According to the statement, “This recent move will witness a 1,200 fees reduction or cancellation at Ministry of Interior, 80 and 200 for the Ministry of Economy and Ministry of Human resources and Emiratisation.”
The Ministry of Finance analyzed the findings of the fees study to form recommendations for an initiative that sees “the gradual transformation of the present government income system, supported services charged, into a tax-based system.”
The reduced fees at the Ministry of Interior embody the issue or renewal of security licenses, licenses that of Security Guard and the Surveillance systems licenses, the statement stated. The list of canceled fees includes business and industrial licensing services, as a lift for the investors and small firms.
The Ministry of Economy’s reduced fees will also cover renewing the registration of foreign subsidiaries, registration, and renewal of international logos and trademarks, sale or acquisition services for foreign firms and dispute services. The list of the canceled service fees includes those “that can scale back the monetary burden on firms operative within the country,” it stated.
The Ministry of Human Resources and Emiratisation includes over two hundred services. They include services like issue and renewal of labor permits, the change of employment contracts, coaching permits inside the country, work permits outside the state, permits for employees to maneuver from one facility to a different. They also include alternative services that facilitate support companies’ competitiveness and enhance their ability to grow and invest within the market.
“These choices are expected to further act as enhancement of the business atmosphere within the UAE, empower entrepreneurs and encourage them to form new investment opportunities within the UAE.” the Ministry of Finance stated. “The move will also contribute to the creation of additional jobs within the country and strengthen its competitive standing as a world business hub.”
The UAE edged up two notches to fifth place within the IMD World aggressiveness Rankings out of sixty-three countries. In its generation of states across Europe, the Middle East, and Africa, the country rose to second place from fourth.
The easing of Government fees follows the broader drive under the Ghadan 21, a three-year project to support the non-public (Private) sector. Ghadan 21 – that interprets as “tomorrow” from Arabic encompasses a series of sweeping reforms geared toward stimulating investment, doing jobs, encouraging innovation and rising the quality of life for Abu Dhabi’s public. At an estimated net worth of Dh50 billion, the investment project was proclaimed last summer by Arab chief Sheikh Mohamed bin Zayed, crown prince of Abu Dhabi and Deputy Supreme Commander of the Défense forces.