New economic initiative by the Emirate of Abu Dhabi: Reduction of the business setup and license renewal governmental fees
In addition to the recent reforms adopted by the government of the UAE at a federal level and the governments of the seven Emirates at a local level, aiming to enable the private sector and to attract new investors to establish their commercial activities in the UAE, the Emirate of Abu Dhabi has taken a step further as part of its ongoing efforts to develop further the private sector as well to enhance its position as an attractive destination for foreign direct investment.
In fact, on July 25th, 2021, the Abu Dhabi Media Office has released a statement declaring that as of July 27th, 2021, in light of an initiative led by the Abu Dhabi Department of Economic Development, in collaboration with other governmental entities including the Abu Dhabi Chamber of Commerce and Industry, the government fees on business setup have been reduced to AED 1,000. Such reduction represents approximately more than a 90% cut of the government fees that were paid previously.
The Abu Dhabi Media Office has further confirmed that the new fees apply to business licenses including up to six (6) activities and that such new fees include all the Abu Dhabi Government fees, but nevertheless exclude any applicable Federal charges that may be due. Moreover, it was provided as well that the existing businesses shall also be entitled to benefit from such reduced fees upon the renewal of their business licenses.
As mentioned above, this initiative comes in line with previous achievements that were adopted at both federal and local levels, in order to attract more investors and ensure the commercial competitiveness of the UAE and its Emirates both at a regional and international level. For instance, as a result of the amendments to the UAE Commercial Companies Law, promulgated on September 30th, 2020, which enabled foreign investors to own 100% of commercial companies in the UAE, the Abu Dhabi Department of Economic Development has issued on May 20th, 2021, the list of the 1,105 commercial and industrial activities entitled for a 100% foreign ownership.
To speak to us in relation to this initiative, please feel free to contact Associate, Omar Kayal.