21 Dec
Abu Dhabi targets key cities as it seeks to attract more overseas firms
The Abu Dhabi Investment Office (ADIO) has targeted major cities in Europe, Asia and the US as it chases business leaders, entrepreneurs and innovators to explore expansion to the UAE capital.
A series of six events organised by its international office network to discuss expansion opportunities have taken place in London, Paris, Beijing, Seoul, New York and San Francisco.
The series, which concluded in December, featured speeches and panel discussions from companies that have successfully expanded to Abu Dhabi.
The virtual sessions were supplemented by in-person events and side meetings in the cities that offered opportunities for exchange of ideas and networking between ADIO and the foreign companies in attendance, state news agency WAM reported.
Mohammed Ali Al Shorafa, chairman of the Abu Dhabi Department of Economic Development, said: “The benefits of doing business in Abu Dhabi are unmatched in the region, particularly for companies focused on innovation and technology. Within our investment ecosystem, businesses will find strong government support, established infrastructure and enabling regulations to accelerate their next stage of growth.
“By connecting with innovators across the world, ADIO is ramping up our vision to advance solutions that benefit us all.”
The events hosted by ADIO’s international offices are part of a series of strategic initiatives to help innovative businesses capitalise on opportunities in the emirate.
Established in January, ADIO’s international office network connects companies to Abu Dhabi, leveraging local capabilities to tailor ADIO’s range of financial and non-financial incentives to meet the needs of global investors.
Monira Al Kuttab, executive director, ADIO, said: “For global companies, Abu Dhabi offers access to a fast-growing region by way of a supportive business ecosystem and outstanding connectivity. ADIO is proud to showcase the abundant growth opportunities in Abu Dhabi.
“This is just the tip of the iceberg – the inaugural events of the ADIO’s international office network kick off a series of support initiatives for investors, as part of our renewed commitment to the local business community.”
ADIO offers incentives to eligible companies as part of its AED2 billion ($545 million) Innovation Programme to accelerate opportunities for investors and support the development of impactful solutions in Abu Dhabi.
Source:https://www.arabianbusiness.com/gcc/uae/uae-politics-economics/abu-dhabi-targets-key-cities-as-it-seeks-to-attract-more-overseas-firms
12 Dec
New UAE weekend to attract foreign investments, bolster business, tourist appeal
Latest work system will bring the financial sector closer to the global stock markets, banks and financial institutions and, therefore, advance business and foreign trade
The new work system in the UAE aims to attract foreign investments, bolster its business and tourist appeal, and align its financial sector with international markets that will yield higher returns than the existing system in place, experts say.
Analysts and top corporate executives said the new work system would bring the UAE’s financial sector closer to the global stock markets, banks, and financial institutions and advance business and foreign trade.
The new working week, which is to take effect next month, will facilitate business transactions of local banks and entrepreneurs in the global market. According to the experts, matching the working weekdays with the rest of the world enables the private sector to carry out uninterrupted business, which stimulates business growth and yields higher returns.
On Tuesday, the UAE announced that it will shift from the start of 2022 to a working week that ends on Friday afternoon, with a Saturday-Sunday weekend instead of Friday and Saturday. The change will affect state entities, while private companies will be free to choose their working week.
A meaningful move
An economist at Abu Dhabi Commercial Bank, Monica Malik, said many private sector companies in the UAE are expected to follow the Saturday-Sunday weekend.
“It is a very meaningful move in addition to other reforms introduced by the government in recent past,” she said.
Atik Munshi, managing partner, FinExpertiza UAE, said most countries in the world have Saturday and Sunday as their weekend.
“With the Friday and Saturday weekend in the UAE, there is a cumulative three days off work if any entity is dealing with the western or Asian country. With the new Saturday-Sunday weekend schedule, the UAE is trying to align with the rest of the world and thus save one day,” Munshi told Khaleej Times.
He said there had been a progressive thought of limiting working days to four instead of the current five. “By the four-and-half-day week, the UAE is trying to be a pioneer in such change. Though such change may benefit international business, it will take a while for the people of UAE to adjust to this change as traditionally, the Friday-Saturday weekend gels well with the local culture. The new year will bring a lifestyle change for most UAE residents due to the weekend change,” he said.
In reply to a question, he said it is difficult to forecast an immediate financial impact on the economy, but definitely, the sectors which deal internationally like forex, banks, shares and multinationals will benefit from the move.
Move to lift productivity
Shailesh Dash, a Dubai-based entrepreneur and financier, said it’s the step in the right direction which almost everybody has been talking about for the last couple of years of happening.
“It helps in making UAE-based companies work more easily with the international companies who have a similar weekend policy as well as help in creating much better work-life balance,” Dash told Khaleej Times on Wednesday.
“We believe it would help productivity in almost all sectors, but I believe the hospitality industry, as well as the logistics businesses, should benefit quite a bit. It would certainly help improve the work-like balance quite a bit, thereby improving the staff’s productivity and economy. This has been the case with a few other countries which have adopted a similar policy,” he said.
Adjustment to take time
Saad Maniar, a senior partner at Crowe, said it would contribute to the health and well-being of the people, which will result in better productivity. However, the cost of doing business will go up in the short term until people get adjusted to the shorter working week and can achieve operational efficiency. Also, a lot of planning is required to adapt to new work time, and it will take time to get adjusted, he said.
“Both government organisations and schools will benefit from the shorter working week. A four-and-half-day week will boost productivity for sure, however in the initial phase, the economy will have to learn to adapt to the new norms,” Maniar told Khaleej Times.
Ata Shobeiry, chief executive at Zoom Property, said the new weekend system is a welcome change as it will align Dubai with global markets that follow a Saturday-Sunday week. “It will facilitate timely and smooth international transactions, which, in turn, will boost many sectors of the Emirate, including the real estate market, which is already gaining a lot of interest from foreign investors after the brief Covd-19 setback,” he said.
Shobeiry said reduced working hours will also promote a healthy work-life balance among employees.
“They will be able to perform better and be at their productive best knowing that they have ample time to relax and socialise during the two-and-a-half-day long weekend,” he said.
A welcome for investors
Oscar Abraham, corporate counsel with a tech company, said this move could potentially have a huge impact, and the transition to the Saturday-Sunday weekend will be a welcome move for investors.
“The UAE will attract investments which will add to the robustness of the banking and financial sectors, both of which have already seen stellar growth in the past few years. In conjunction with the recent reforms in legislation affecting personal laws, this signals the UAE’s intent to make itself an attractive destination from an investor perspective and for expatriates to consider as a migration destination. This influx of manpower and finances could lay the required foundations for the long-term success of the UAE,” Abraham told Khaleej Times.
He said a working Friday ensures an inflow/outflow of transactions for an extra 24 hours in sync with the world’s banking and financial markets. This is a massive boost for foreign investors, especially those who would like to transact ahead of the closing bell on a Friday. This would promote UAE’s status as a global financial hub and cement its position as a gateway for Mena investors to access global markets and vice versa.
“The UAE can now also leverage its unique position amongst peers in the wider Middle East. A working Friday will lure investors from neighbouring countries who wish to access the markets on a Friday to consider the UAE-based banks and financial institutions as a gateway. This could potentially boost the financial services sector’s reach within the wider Mena region,” he said.
To a question about the major beneficiary of the new move, he said the obvious beneficiaries are the banking and financial services sectors. However, the technology sector will also see a significant boost.
“A structural change of this nature will require technology adoption to ensure the transition is smooth and not disruptive to services. An acceleration of technology adoption is likely and in line with the UAE’s wider initiatives to cement its position as a pioneer in the field,” Abraham concluded.
23 Nov
Emirati members of Dubai SME to get up to seven-year exemption on licence fee
The fee exemption applies to registered Emirati members who have not completed the five-year period
The Government of Dubai has extended the five-year exemption given earlier to Emirati members of Dubai SME from paying licence fees to seven years.
Under Article No. (10) of Law No. (23) 2009, the licensing fee applicable on SMEs was Dhs1,000 for the first three years from the issuance of the licence, and Dhs2,000 for the fourth and fifth years.
The extension of fee exemption granted now applies to registered members of Dubai SME who have not completed the five-year period stipulated in Article No. (10) of Law No. (23) 2009. New members are not eligible for the extension.
The five-year exemption granted earlier contributed to reducing financial burdens faced by startups.
The decision was made as part of a directive issued by Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Dubai Crown Prince and Chairman of The Executive Council, as part of a series of initiatives aimed to support entrepreneurs and their startups to tide over the challenges posed by the pandemic and to address their concerns about growth and cash flow.
The Department of Finance, in coordination with the General Secretariat of the Executive Council and Dubai SME, has launched a series initiatives for small and medium-sized companies since 2018, which included allocating 20 per cent of government purchases for Dubai SME members and special dealings with regard to primary and final insurance as well as accelerating payment of corporate dues, in addition to other benefits granted by Law No. 12 of 2020 on Contracts and Warehouse management in Dubai Government.
In Dubai, SMEs constitute nearly 95 per cent of all companies, employing 42 per cent of all workforce in the emirate and contributing to around 40 per cent of Dubai’s GDP, according to state-run news agency WAM.
Since 2002, Dubai SME has supported 10,803 member SMEs with incentives and relief measures worth over Dhs995m.
“Dubai has already announced five stimulus packages worth AED7.1 billion in the aftermath of Covid-19 and the outcomes have been phenomenal in terms of the emirate resuming full-scale economic activity while also enhancing its business competitiveness and investment attractiveness,” said Abdulrahman Al Saleh, Director General of the Department of Finance, Government of Dubai.
“Emirati entrepreneurs should be particularly supported and motivated since they are critical to ensuring the sustainability of the labour market and building a competitive national cadre, a key target emphasised once again by the leadership in the ‘Projects of the 50.’”
Source:https://gulfbusiness.com/emirati-members-of-dubai-sme-to-get-seven-year-exemption-on-licence-fee/
22 Nov
Dubai sets up task force to drive green finance ambitions
Dubai’s financial regulator has set up a task force to drive forward standards related to sustainable finance, which is becoming increasingly popular in the Gulf region.
Dubai Financial Services Authority (DFSA) said it has launched the Task Force on Sustainable Finance (TFSF) in the Dubai International Financial Centre (DIFC).
Comprised of members from 12 DIFC-based entities, the TFSF aims to drive forward discussions regarding sustainable finance in the DIFC with the aim of supporting the application and adoption of global regulatory standards.
DFSA said sustainability forms a key area of its regulatory focus and is actively involved in numerous sustainability-orientated regulatory groups, including the Network for Greening the Financial System (NGFS), the Sustainable Insurance Forum (SIF) and the UAE Working Group on Sustainable Finance.
In launching the TFSF in the DIFC, the DFSA aims to harness its involvement in global forums and the global experience of DIFC firms to bring global best-practice to the development of sustainable finance in the DIFC.
Christopher Calabia, chief executive of the DFSA, said: “The financial services sector has an important role to play in ensuring that we leverage the power of the purse to reduce emissions and funnel capital toward innovations in energy and carbon capture that will help us to flatten the curve of increases in average temperatures.”
He added that as a significant global hub for banking, securities, and insurance, the DIFC has a part to play in this work as well which is why the engagement of industry leaders in discussions with regulators and supervisors is so important.
Representatives from Blackrock, Credit Agricole Corporate and Investment Bank, HSBC Bank Middle East Limited, Lloyd’s of London, Moody’s Investors Service Middle East Limited, Natixis, PwC, Standard Chartered Bank, Sumitomo Mitsui Banking Corporation, and Zurich Insurance Company Ltd attended the meeting.
The SFTF will next meet in January to discuss the next steps and how the work could be progressed, a statement said.
Last month, HSBC CEO Noel Quinn forecast that 2021 is set to be the first trillion-dollar year for green bonds, with a “major industrial transformation” in the next decade pushing firms to become carbon neutral or carbon light.
Speaking at the Middle East Green Initiative Summit in Riyadh, Quinn said that in the first nine months of 2021, green social and sustainable bonds raised more than $777 billion.
Saudi British Bank (SABB) recently became the first Saudi institution to make a green deposit as the clamour for sustainable finance increases in the Gulf region.
The funds, deposited with HSBC in the UAE, will be used solely to finance green initiatives.
It was the first green deposit issued in UAE dirham and one of the first green deposits made by a financial institution in the Middle East.
The deal comes just a few months after HSBC launched green deposits in the UAE. The bank said interest in the sustainable financing option has been immediate, with this being the third green deposit issued so far.
Source:https://www.arabianbusiness.com/gcc/uae/dubai-sets-up-task-force-to-drive-green-finance-ambitions
