Dubai’s Department of Economy & Tourism issued 55,194 new business licences over the first 10 months of 2021, a 69% increase over the 32,626 licences issued in the same period in 2020, according to a report released in November.
According to the report, 59% were professional and 41% commercial. In terms of corporate structures, sole establishment companies accounted for 38% of the new licences, followed by limited liability companies with 28% and civil companies with 24%.
Bur Dubai accounted for the largest share (37,562) of new licences issued during the first 10 months of 2021, followed by Deira (17,572) and Hatta (60), while the top sub-regions were: Al Fahidi, Burj Khalifa, Port Saeed, Al Marrar, Trade Centre 1, Qubaisi, Al Barsha 1, Naif, Al Garhoud and Al Karama.
A total of 233,908 business registration and licensing transactions were completed during the period from January to October, a 17% increase over the 199,888 completed in the same period in 2020. The total number of renewal transactions reached 120,120 in the first 10 months of 2021, up 3% on the 117,030 transactions completed in the same period in 2020.
Dubai’s business conditions experienced the sharpest improvement in two years for October, spurred by a rebound in new orders and increased tourism as Expo 2020 got under way. According to the latest Purchasing Managers’ Index (PMI) data compiled by IHS Markit, growth across much of the non-oil private sector accelerated. Dubai’s PMI jumped from 51.5 points in September to 54.5 in October, moving above the 50-point mark that separates growth from contraction and reaching its highest level since October 2019.
“The initial surge in sales contributed to a sharp expansion in activity, suggesting that the economy is well on the way to recovering from the pandemic,” said David Owen, economist at IHS Markit. “Job creation was again signaled across only a small proportion of the survey panel in October. However, with tourism reviving and capacity pressures growing, this will likely improve in the coming months.”