Dubai’s economy continues to rebound from Covid shock
In Blog Dubai
As evidence of renewed business confidence, a total of 6,928 new company licences were issued in Dubai during September amid, a jump of 68% over the same period in 2020 when the effects of the Covid-19 pandemic were still being felt acutely.
More than half (56%) of the new licences issued in September were professional, 43% were commercial and the remaining 1% was distributed among the industrial and tourism categories, according to figures released by the Business Registration and Licensing sector of Dubai Economy
The Bur Dubai region accounted for the largest share (4,658) of new licences issued, followed by the Deira district (2,264) and Hatta (6), while the top sub-regions were Al Fahidi, Burj Khalifa, Port Saeed, Al Marrar, Dubai Investment Park 1, Naif, Al Muraqqabat, Al Karama, Trade Centre 1 and Al Garhoud.
Sole establishment companies accounted for more than a third of new licences, topping the list at 36%, followed by limited liability companies with 25.5% and civil companies with 22%. In addition, 26,232 business registration and licensing transactions were completed in September, up 12% on the 2020 figure
The figures show that Dubai’s economy has rebounded steadily from the pandemic, while Expo 2020 Dubai has provided a further boost, with business confidence now at its third highest level in 10 years.
According to the findings of Dubai Chamber’s quarterly Business Leaders’ Outlook Survey, 76% of respondents noted improved business confidence in the fourth quarter of 2021, compared to 66% in the third quarter and 48% in the second quarter of the same year. Some 78% of survey respondents also said they expected Expo 2020 Dubai to benefit their businesses in the coming months.
In addition, 83% of business leaders expected an improvement in business conditions in Q4-2021 compared to 66% in the previous quarter and 51% in the second quarter. Global supply chain restrictions were identified as a key challenge for business leaders, along with a rise in global commodity prices.
Commenting on the survey results, President and CEO of Dubai Chamber Hamad Buamim, said the findings reflected growing optimism within the local business community and promising economic prospects that are being created by Expo 2020 Dubai.
Increased government support for the private sector, success in overcoming Covid-related challenges, new business incentives, easing travel restrictions and higher oil prices were among the other key factors that contributed to the positive outlook, he added.
Expo 2020 Dubai opened its doors to the world at the start of October, with organisers forecasting 25 million visits to the global showcase over the next six months through to 31 March 2022.