Abu Dhabi Department of Economic Development (ADDED), in partnership with other government entities, has reduced the fees for setting up a business by 94 percent to $272.2 as the emirate seeks to increase its competitiveness and attract more investors.
The updated fees are applicable to six activities within the business license and will cover all fees from Abu Dhabi government entities including ADDED, the Department of Municipalities and Transport, membership fees for Abu Dhabi Chamber, CoC (Certificate of Conformity) issuance fee and charges required by Abu Dhabi regulating entities dependent on the type of business. License renewal fees has also been reduced to $272.2, the agency 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. 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.”
Abu Dhabi has taken various measures, including providing rent rebates, discounts on utility bills and loan guarantee packages, to support businesses and stimulate economic growth in the past year amid the coronavirus pandemic. Last year, it detailed a plan to stimulate economic growth through strategic investments and 16 initiatives to support the private sector.
With the move to introduce a fixed fee, ADDED intends to boost the transparency and reduce administration for investors as well as to build a favorable environment for the small and medium-sized enterprises (SME). The new fees will be effective from July 27, 2021, but all federal fees will continue to apply, the statement from the department said.
Over the next two years, Abu Dhabi’s economy is projected to grow between 6 percent and 8 percent, mainly due to government spending, financial services and foreign direct investment, Mr. Al Shorafa said earlier this year.
Abu Dhabi is also planning to focus on specific sectors in which government entities can partner with private companies to enhance their growth and increase their contribution to the emirate’s gross domestic product.