The UAE capital has just slashed business registration costs by 90%, in a move set to consolidate the impact of high-level summits like AIBC Dubai.
The capital of the UAE, Abu Dhabi, is looking to become the number one emirate in the region while also increasing the city's competitiveness by slashing business registration costs by more than 90%.
As reported by AFP, the move is to come into effect today and will economically boost the already competitive emirate.
It is no secret that the UAE is a haven for technology and high-level events with many global companies looking at the region as the perfect place to showcase their innovative products.
The UAE's influence in the emerging tech industry and their aim to become "Smart" were the reasons why AIBC decided to hold a record breaking event in Dubai earlier this year. Due to the success seen at our Dubai show, it is no secret that other regions within the UAE were looking to capitalise on AIBC's success and all the benefits Dubai experienced from the event.
Following AIBC UAE a number of businesses showed concrete interest in the region, and as expected these companies were mainly in AI, fintech & the emerging tech sectors. Attending an event like AIBC, in such an advanced region like the UAE, provided the perfect setting for business people to make those defining business relationships.
The Abu Dhabi Strategy
The new strategy to drastically reduce business registration costs will see set-up fees be reduced to AED1,000, or a measly €230, meaning that even startups will be attracted to set up shop and take advantage of Abu Dhabi's market potential. A statement by the Abu Dhabi government media office highlighted the need for this new business strategy:
"The move will significantly enhance ease of doing business in the emirate and increase Abu Dhabi’s competitiveness regionally and internationally."
UAE's Roadmap However, this is not the first move by the UAE to become the business hub of the world, as the country has launched a significant amount of reforms. Most notably, since June 1st, foreign expats have been allowed to create business and retain control of all the capital. Previously, this was allowed in economic-free zones with a maximum of 49% outside these zones before this reform was put into place. The UAE, through Abu Dhabi & Dubai, has benefitted from the competition from the two emirates as they aspire to become the number one place within the UAE for business. Coincidentally, after AIBC's successful show in Dubai - Abu Dhabi are vying for the event to take place in their own emirate next year! The Dubai government has also announced a number of reforms which aim to reduce costs of doing business and increase economic growth, coming into full effect by mid-September.
UAE's competition The new reforms by the two hubs for innovation & tech, Dubai and Abu Dhabi, should be welcomed by the UAE as a whole as they have a new competitor looking to take business away from them. Saudi Arabia, the Arab world's largest economy, is looking to move away from the oil industry after identifying Riyadh as a new business district.
However, their strategy is a bit more aggressive as foreign businesses have been given an ultimatum - move their regional HQ to Saudi Arabia by 2024 or miss out on lucrative government contracts.
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