The Abu Dhabi Department of Economic Development hopes the move will “create a thriving business environment that encourages growth and innovation.”
The Abu Dhabi Department of Economic Development (ADDED) has announced a slashing of business set-up fees by 94% to Dh1,000, a move made in partnership with other governmental entities in the hope of attracting foreign direct investments (FDI), increasing competitiveness, and strengthening the non-oil ecosystem as the the Emirate seeks to continue diversifying its economy.
License renewal fees have also been reduced to Dh1,000, and the new fees will be effective from Tuesday, July 27th 2021.
The logic of the new regulations also seeks to benefit small and medium-sized enterprises (SMEs).
“The objective is to attract FDI to support different sectors of the economy, alongside developing new industries that will lead future growth,” said Monica Malik, chief economist at Abu Dhabi Commercial Bank. “It certainly makes Abu Dhabi attractive to new ventures and start-ups.”
Mohammed Al Shorafa, chairman of ADDED, was in agreement as he said “we hope this significant change in fee structure helps to further ease the set-up process for new and existing investors.”
"Our goal for Abu Dhabi, as part of our new economic strategy, is to create a thriving business environment that encourages growth and innovation,” continued Shorafa. “Ease of starting and managing a business is a key lever, and we strongly believe the restructuring of fees will help us achieve this goal.”