The UAE economy reflects growing investor confidence by posting a more than 5 percent increase in new business licenses this year, ahead of the one-year countdown to Expo 2020 Dubai that starts next month.
Dubai gained the top spot by issuing more than 265,000 business licenses, then Abu Dhabi and Sharjah with135,918 and 82,825 business permits, respectively.
Analysts and government officials said that the consistent growth in business activity was due to government initiatives to protect the UAE economy from a slowdown in the global economy, US-China trade war and geopolitical tensions in the region.
Experts said the significant increase in business licences corroborates economic growth estimates made by the Central Bank of the UAE, which projected 2.4 percent economic growth in 2019.
They said the ease of doing business policy to facilitate investors and the UAE government’s bold decisions have boosted not only new investors’ confidence but has also given a lifeline to existing ones.
In terms of legal status, latest data indicates that a total of 181,985 licenses were issued for limited liability companies across the UAE, while 78,491 were registered for individual establishments and 3,935 for single-member limited liability companies.
Sultan Abdullah bin Hadda Al Suwaidi, chairman of the Sharjah Economic Development Department (SEDD), said the data indicates a huge increase in investments, which are indicators of sustainable growth in the emirate.