The United Arab Emirates (UAE) government is exploring the introduction of a new business licensing framework. This framework would include long-term “golden” licenses valid for ten years and “silver” licenses valid for five years. This initiative aligns with the UAE’s existing Golden Visa program, which offers ten-year residency for qualified investors and entrepreneurs.
Discussions regarding the new licensing structure took place during a recent Economic Integration Committee meeting. The committee, led by prominent figures such as Minister of Economy Abdullah bin Touq Al Marri and Minister of State for Foreign Trade Thani bin Ahmed Al Zeyoudi, aims to establish competitive pricing for these extended licenses. This pricing strategy aims to generate government revenue while fostering business continuity and economic growth within the UAE.
Previously, business licenses in the UAE typically required annual renewal. The proposed long-term licenses aim to address this by providing businesses with greater stability and predictability. This aligns with the government’s ongoing efforts to streamline business operations. Initiatives such as Dubai’s Instant Licence, which issues licenses within minutes for pre-approved activities, demonstrate this commitment.
The introduction of these extended licenses is expected to attract additional talent and businesses to the UAE, further enhancing the country’s economic competitiveness. Minister Al Marri emphasized the UAE’s commitment to fostering a competitive business environment. He cited existing economic policies and legislation as evidence of this commitment, highlighting the significant growth in company registrations and foreign direct investment observed in recent years.
Industry experts, such as Raheel Ahmed, Group CEO of RAKBank, view this initiative positively. They believe the extended licenses will provide greater sustainability for businesses, particularly small and medium enterprises (SMEs). This stability allows for more strategic planning and reduces the risk of business closures due to licensing renewal concerns.
The Economic Integration Committee plays a crucial role in strengthening the UAE’s business environment. Through the development of a robust legal framework and strategic policy recommendations, the committee aims to accelerate business growth and solidify the UAE’s position as a hub for global talent and investment.
Publish 28 Mar 2024
Source: https://www.khaleejtimes.com/business/uae-in-talks-to-issue-10-year-golden-business-licence-at-competitive-prices/
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