Dubai issues 64,360 licences to Indian businessmen

Underlining the strong interest of Indian businessmen in the competitive business environment of Dubai, a recent report issued by the Business Registration & Licensing (BRL) sector in Dubai Economy showed that 64,360 active business licences have been issued to 246,737 Indian businessmen till date. Together, these Indian companies have added 854,234 jobs to the labour market.

Of the total active licences issued to Indian companies, commercial activities accounted for the largest share at 49,900 (77.5%) with 212,500 Indian investors, followed by professional activities with 13,037 licences (30,153 investors), 1,404 industrial licences (4,042 investors), and 19 tourist licences (42 investors).

India is one of the most prominent partners of Dubai and the UAE and the number of licences being issued by Dubai Economy shows that the emirate is a favourite destination for Indian investors and entrepreneurs, chiefly due to its strategic location and diversified economy. Dubai’s safety and stability as a place to live, work and ensure sustainable business growth have also been an added attraction for Indian businessmen.

Faizal E. Kottikollon, Founder & Chairman, KEF Holdings, said: “Dubai is one of the few cities in the world to have seen an exponential transformation in the last three decades. It has been responsible for some of the most prominent success stories in the world, not only because of its strategic location but also due to the long-term vision of the UAE leaders. As an Indian investor in this region, I have personally experienced great support from the government which has helped KEF Holdings in becoming a truly global success story. With renewed UAE-India ties, and a favourable investment atmosphere, I see the interest of investors in Dubai not just sustaining but rapidly growing.”

Of the total number of Indian businesses licenced, 53,099 are Limited Liability Companies, 5,951 are Proprietorship firms, 3,622 are Civil Companies, 644 are branches of companies registered in other emirates, and 287 are either Limited Liability Company - Single Owner (LLC - SO) or Branch of Foreign Company. Other legal forms also included Partnership Company, Simple Partnership Company, Branch of a GCC Company, Branch of Company Registered in free zone, Private Joint Stock Company, Public Joint Stock Company, Businessmen Forum and Government Liaison Office.

The main activities of the Indian investors in Dubai include: Contracting; Electronics; Ready-made Garments; Building, maintenance and cleaning; Mechanical and engineering; Consulting - management and information; Building materials; Transport, shipping and storage; Food and beverage; Pharmaceuticals; Books and stationery; Electrical and electronic equipment repair; Optical and visual inspection services; Advertising; Printing; and Consumer complexes.

According to Dubai’s Department of Economic Development (DED), more than 14,000 new business licences were issued in the Emirate during the first half of 2019.

Fifty-two per cent of the new licences were commercial (7,648), 45 per cent professional (6,722), two per cent tourism (262), and the rest were related to industry (105).

The DED’s Business Map digital platform, which reflects the economic ecosystem of Dubai by providing vital data on each licence category including numbers and distribution on a monthly basis, showed that 81 business licences were issued per day during the first half of the year as the city continued to enhance its appeal as a destination for sustainable business growth.

New business owners accounted for 88 per cent of the licences issued during H1 2019. The top 10 nationalities that secured the new licences were Indians, Bangladeshis, Pakistanis, Egyptians, British, Saudis, Jordanians, Chinese, Filipinos and Sudanese.

Bur Dubai area accounted for the largest share (7,584) of the new licences issued during H1 2019 followed by Deira (7,135) and Hatta (18).

The top sub-regions were Burj Khalifa (1,747), Al Garhoud (1,284) and Port Saeed (986), followed by Al Fahidi, Al Barsha 1, Dubai World Trade Centre 1, Al Marrar, Al Khubaisi, Naif and Oud Metha.

The DED also issued 1,149 instant licences, which were processed in a single step without the need for either the Memorandum of Association or an existing location during the first year.

Of the total number of licences issued during H1 2019, 7,392 were for Limited Liability Companies, 3,883 for Sole Proprietorship companies, and 2,686 for Civil Companies. The legal forms also included branches of foreign companies and branches of companies based in other Emirates.

WAM