Timely decisions by UAE to boost economy

Bold and pragmatic decisions are what have helped the UAE race ahead to the top in the region and gain adoration across the globe.

The Ministry of Finance’s (MoF) announcement on Thursday that over 1,500 federal government services fees will either be reduced or cancelled will undoubtedly enhance the appeal of the national economy and reduce the cost of doing business, besides bolstering the competitiveness of the UAE.

Certain fees have been reduced by up to 50 per cent.

The changes will be applicable to more than 1,500 federal services for three main federal ministries — Ministry of Interior, Ministry of Economy and the Ministry Human Resources and Emiratisation

The latest move follows the Cabinet decision issued on the reduction and cancellation of fees for the services of some federal entities, which took effect on July 1, 2019.

In terms of specific numbers, 1,200 fees were reduced or cancelled at the Ministry of Interior, 80 at the Ministry of Economy, and 200 at the Ministry of Human Resources and Emiratisation.

The approach towards initiating such measures has been totally realistic. The decision follows a study of service fees in the UAE in comparison with those in neighbouring countries.

The study also identified the requisite measures in accordance with the government’s aim to strengthen the economy and increase the competitiveness of the UAE.

As Younis Haji Al Khoori, Under-Secretary of the Ministry of Finance, elaborated, “During the preparation of the Federal Fee Review Project, the Ministry of Finance ensured that a standard study of fees was conducted and contrasted with international best practice. It then analysed the findings of this study to make recommendations to launch a well-conceived initiative that supports the gradual transformation of the existing government revenue system based on services charged into a tax-based system.”

On Wednesday, the Ministry of Human Resources and Emiratisation had announced the reduction in fees for 145 services, including 17 services fees reduced by between 50 per cent and 94 per cent, as well as 128 services and transactions provided by its services centres, which are the Tas’heel, Tad-beer, Twa-foq and Tawjeeh centres, along with the Taqyeem service.

As pointed out by Nasser Bin Thani Al Hamli, Minister of Human Resources and Emiratisation, the reduction in the fees came as part of the government’s efforts to create an environment that attracts investors and support entrepreneurs and business owners, through reducing their operational costs related to recruiting and employing workers, and empowering Emirati nationals to find work in the private sector.

Incidentally, according to the resolution, the fee for applying for a work permit for residing in the country through their parents’ residency for certain companies will be reduced from Dhs200 to Dhs100.

In a path-breaking initiative, the Cabinet recently announced a decision to offer 100% foreign ownership in 122 economic activities across 13 sectors. The decision should be considered perfectly well timed considering the uncertainties prevailing in the global market.

The benefits are immense for the investors as the decision provides them with an opportunity to acquire various shares in a number of economic activities including the production of solar panels, power transformers, green technology, and hybrid power plants.

Areas of foreign ownership also include transport and storage, which allows investors to own projects in the field of e-commerce transport, supply chain, logistics, and cold storage for pharmaceutical products.

Visionary leadership decisions such as the above are what have helped businesses and economy to thrive. Way to go, UAE.