UAE Slashes Business Fees To Support SMEs

KEY POINTS

UAE's Ministry of Industry and Advanced Technology reduced business fees for 14 main and sub services
The move aims to attract more foreign investors to the country
It is also expected to boost the country's competitiveness in terms of business development

The UAE has moved to offer a more attractive business environment for potential investors. The country's Ministry of Industry and Advanced Technology (MoIAT) has announced that it has reduced fees for 14 main and sub-services and waived the fee for one other service to make the UAE more business-friendly and help small and medium-sized businesses thrive in the country.

In a statement Tuesday, the ministry explained that the move, which took effect Jan. 1, 2023, was part of the UAE's efforts to support entrepreneurship and reduce the cost of doing business in the country. "The move aligns with the objectives of the "Make in the Emirates" initiative aimed at creating an attractive business environment for local and international investors and supporting entrepreneurship and SMEs in the industrial sector by reducing the cost of doing business in the UAE," said the ministry.

"The reduction and cancellation of some fees are in line with the ministry's keenness to develop priority industrial sectors in the country and enhance its investment appeal," noted MoIAT undersecretary Omar Al Suwaidi. "It also reduces the burden on the designated bodies as well as the registered conformity assessment bodies, which support national industries in line with the national industry and advanced technology strategy, Operation 300bn."

Al Suwaidi added that the slash in business fees will improve the country's competitiveness as it facilitates economic and business development growth, which will then reflect on the index of doing business in the UAE. The country currently ranks 12^th globally in terms of competitiveness in the area of the business environment.

The UAE also ranks first in the Mena region in the last World Competitiveness Year Book issued by the International Institute for Management Development (IMD), with a score of 88.67. The country is also the first among Arab nations and 16^th in the world based on the World Bank's Doing Business Report.

Over the years, the UAE has implemented various reforms to improve the ease of doing business in the country and attract more foreign investors. Its initiatives include allowing 100 percent foreign ownership of companies, reducing visa restrictions, offering incentives for SMEs, and introducing laws aimed at boosting transparency for investors.