ADDED announces professional permits for full foreign ownership

The Abu Dhabi Department of Economic Development (ADDED) has announced the release of the professional licence across the Emirate of Abu Dhabi, permitting foreign professionals to establish and fully own a professional business company within 604 professional activities following their area of experience and qualifications.

The professional activities company include many fields such as accounting, training, consultancy, beauty centres, computer and internet network companies, and others, as they are fully owned by foreign professional partners.

Rashid Abdulkarim Al Blooshi, Undersecretary of ADDED, said that the professional license contributes to boosting confidence among professionals and all customers. Also, this decision sparks an incubating environment for the professional community, which in turn accelerates the transformation to the knowledge-based economy.

He also, pointed out that this type of license is preferable to new investors due to its low cost, and the ease of its issuance, especially if the desired activity is “consulting”, where the legal form of it is either an individual establishment or group of professionals company, in case there is more than one investor. This type of licenses is easy to set up or adjust, which in turn will streamline business practice across the Emirate of Abu Dhabi.

ADDED indicated that a local services agent is required for most of the companies in case if there is no Emirati partner. The local service agent is responsible for managing the licensing requirements without bearing any liability for any financial obligation towards the company or its activities in Abu Dhabi or any other place.

Furthermore, ADDED will issue a form of service agent agreement to demonstrate and identify the relationship between all the partners. In addition, the Department has issued a model for the professional company’s Articles of Association that will be available through the Department’s website.

Along with the possibility of licensing a professional company, ADDED also highlighted that opening a commercial branch without prejudice to the professional license or its features could be possible if the commercial activity is consistent with or complementary to the professional activity. Additionally, existing establishments can benefit from this decision by adjusting their status from a commercial to a professional facility while maintaining their registered number in the commercial and date of incorporation.

The professional work license is a specialised license in professional activities, which include any activity practiced by a professional investor within his area of experience and matching his academic or professional qualifications.

ADNIC records profit: Abu Dhabi National Insurance Company (ADNIC), a multi-line insurance providers for both corporates and individuals, reported net profit for the six-month period ended 30th June 2021 increased by 31.1 per cent to Dhs248.7 million, compared to Dhs189.7 million for the same period in 2020, driven by outstanding performance in both underwriting and investment activities.

Gross written premiums for the first half of 2021 increased by 4.2 per cent to Dhs2.67 billion, compared to Dhs2.56 billion in the same period of 2020, a company press release said on Monday.

Commenting on ADNIC’s performance, Sheikh Mohamed Bin Saif Al-Nahyan, Chairman of ADNIC, said, “ADNIC has maintained its strong financial position and market position in the first half of 2021 through a clear strategy, underwriting discipline, operational excellence and a diversified investment portfolio. Despite the challenges posed by the global pandemic and the disruptions caused to daily life, ADNIC continued to improve its capabilities and managed to emerge even stronger to provide uninterrupted support to its customers.”

Ahmad Idris, CEO of ADNIC, said, “ADNIC’s ability to deliver strong profitability and exceptional levels of operational efficiency despite challenges in the wider market has been enabled through ongoing pricing discipline and investments into technology. Our Consumer Lines business performed particularly well, driven by our strong product offering, bancassurance presence and distribution and broker networks. Looking ahead, we will continue to contribute to initiatives that contribute to the betterment of society across the UAE, utilising our sustainability strategy to ensure the long-term benefits for our customers and employees, our local communities, and our environment.”

ADNIC performed well across its operations during the first half of 2021. ADNIC’s overall premium retention ratio for the six-month period was 34.29 per cent, compared to 34.26 per cent for the same period in 2020. Net underwriting profit during H1 2021 increased by 1.5 per cent to Dhs280.3 million, against Dhs276.3 million for the same period in 2020.

ADNIC’s net investment and other income increased by 58.3 per cent to Dhs87.3 million for the six-month period, compared to Dhs55.1 million for the same period in 2020. General and administrative expenses stood at Dhs118.9 million, compared to Dhs141.7 million for the same period in 2020, reflecting the company’s continued focus on operational efficiency and cost management.

WAM