Dubai Economy records 132% increase in DED Trader licences issued during 2020
Through the DED Trader licence, Dubai Economy seeks to regulate and enhance the ease of doing business electronically
Dubai Economy on Sunday said that it recorded a strong 132 per cent growth in DED Trader Licences last year despite the challenges posed by the Covid-19 pandemic.
In a statement, Dubai Economy said that the DED Trader licence registered strong interest with online business and e-commerce gaining momentum as it issued 5,799 licences last year compared to 2,500 in 2019.
The DED Trader licence, launched by the Business Registration & Licensing (BRL) sector of Dubai Economy (DED) to licence freelancers at their place of residence in Dubai and enable start-ups to conduct business activities online and across social networking accounts, has seen overwhelming response with 9,949 licences issued since its launch in 2017 till end of 2020. Of these, 57 per cent have been issued to women (5,704).
“This reflects Dubai Economy’s focus on promoting e-commerce and the competitiveness of Dubai’s economy, as well as its commitment to realising the vision of the government to drive digital transformation and build awareness about e-platforms that facilitate commercial activities,” according to the Dubai Economy statement.
The report issued by the BRL sector showed that ‘Marketing Services Via Social Media’ topped the list of activities of licences until the end of 2020 followed by Perfumes & Cosmetics Trading; Portal; Sweets & Candies Preparing; Cafeteria; Marketing Management; Social Media Applications Development & Management; Readymade Garments Trading and Ladies’ Garments Trading. The total number of DED Trader licence groups is 86.
Shailesh Dash, financier and entrepreneur, said the DED Trader Licence is one of the key initiatives launched by Dubai Economy to help promote small and medium entrepreneurs, freelancers and start-up owners to establish their base in one of the safest and economically stable cities of the world.
“This is a very good initiative of Dubai Economy to promote e-commerce and the competitiveness of the economy. It will help drive digital transformation and build awareness about e-platforms that facilitate commercial activities in the emirate,” he said.
Nazim Munshi, director at Enterprise House, said DED and Dubai government has always tried to recognise the pulse of business and the entrepreneurs in UAE.
“DED Trader licence was one such initiate made by DED to promote e-commerce and SME businesses. The results of this initiative have been fantastic which can be witnessed by the 132 per cent growth,” Munshi told Khaleej Times.
Through DED Trader licence, Dubai Economy seeks to regulate and enhance the ease of doing business electronically, find a platform that supports and develops trade as well as connect customers with traders. The licensee cannot open a shop/store but can avail of three visas if the ownership is 100 per cent Emirati and legal liability falls under the licence holder.
“Ease of doing business and low cost of setup and maintenance are the key factors which are expected by the startup investors and DED has come up their expectations,” Munshi said.
The DED Trader licence is issued electronically by visiting dedtrader.ae and following simple steps; create username and password; enter address details, and social media accounts for the project/business; select the activity and trade name and finally pay and receive the licence electronically.
The benefits of getting a DED Trader licence include getting Dubai Chamber membership for commercial activities, benefitting from bank facilities; getting Customs Client Code, which facilitates import and export via dubaitrade.ae; temporary employment services; participation in exhibitions & conferences and training workshop; displaying of products in consumer points of sale and providing work space.
Last year, the BRL sector organised several virtual awareness workshops on how to conduct businesses and other related subjects, to a great number of freelancers and startups.
UAE startups top in funding, deals led by ecommerce in 2020
The three main innovation hubs — the UAE, Egypt and Saudi Arabia — accounted for 68 per cent of total deals disclosed in 2020.
Lessons of 2020 indeed impart a new meaning to resilience as the startup community received a stronger government support in various forms of sops, with Mena startups raising over a record $1 billion of investment in 2020, indicating a 13 per cent increase year-over-year.
Roberto Croci, managing director of Microsoft for Startups MEA, said: “The UAE has all the ingredients to become a vibrant hub for start-ups, underpinned by effective public-private partnerships and fast regulatory decision-making. The UAE has long been synonymous with change and innovation. Much of this has been driven by SMEs and Startups, which are often at the forefront of fresh ideas – in many ways they can be considered the lifeblood of the UAE commercial spirit. Microsoft has long provided the infrastructure and tools to support their work.”
The three main innovation hubs — the UAE, Egypt and Saudi Arabia — accounted for 68 per cent of total deals disclosed in 2020 and once again, the UAE ranked first and accounted for the lion’s share of total funding and the highest number of deals in Mena, representing 56 per cent of all capital deployed across Mena (26 per cent), with 129 deals and $579 million in funding in 2020. Despite the challenges stemming from Covid-19, e-commerce and fintech, retained top spots by the number of deals, with the two sectors together representing 24 per cent of all deals in 2020. Similarly, the amount invested in healthcare startups more than tripled, increasing by +280 per cent to $72 million.
Sajid Azmi, founder and chief executive officer, Yegertek, said: “Pandemic induced restrictions accelerated the growth of e-commerce, but this should not be seen as a temporary transition. Not only has a much larger subset of customers become used to the convenience of e-commerce, the services on offers have also been enhanced. Add to this the inherent advantages e-commerce offers businesses in terms of market penetration, and it’s clear that growth in the sector will only accelerate.”
The Magnitt report ‘2021 Emerging Venture Markets Report’, released on Tuesday ranked Egypt second for both total funding with $179 million (up +31 per cent ) and number of deals (down -10 per cent) and fast-growing Saudi at third place for total funding with $152 million (up +55 per cent), with the number of deals seeing the highest increase in Mena, up by 35 per cent, which is made more remarkable when compared with the slow-down in the rest of Mena.
“2020 was a rollercoaster year that highlighted the importance of leveraging data to make opportunities visible across borders,” said Philip Bahoshy, Magnitt’s CEO. “Covid-19 rapidly accelerated the adoption of technology across emerging markets, creating larger markets and more opportunities to scale. By tracking and analysing startup investments in 19 countries and counting, we have been able to provide real-time intel to governments, founders and investors to support them in making informed decisions and policies,” added Bahoshy.
Magnitt’s latest report analyses and compares investments in technology startupscheadquartered in Mena, Pakistan, and Turkey, as the Dubai-based data platform expands its coverage beyond Mena and into emerging venture markets (EVMs). Last year, Pakistan recorded $77 million in 48 deals, and Turkey recorded $383 million in 140 deals.
Meanwhile, H.A.D Consultants and EMPWR are jointly organising ‘Empowering Minds’ a wellbeing and leadership event series. The startup community is certainly witnessing a spurt in mental health services and is gaining traction among businesses.
H.A.D Consultants is a team of three women — Hala Bou-Alwan, Amrika Bhogaita and Dalia El Kilany — who believe that empowering individuals has a snowball effect, leading to stronger, more resilient teams, businesses, communities and societies as a whole.
Ally Salama, CEO, EMPWR, said: “Traction and startup business in mental health means less stigma, and more marketing, education and awareness. The market now has more appetite for mental health services.”
Dubai Economy issues 42,640 new licenses in 2020
Dubai announced five stimulus packages to help Covid-affected businesses.
Dubai Economy on Tuesday announced that it registered a four per cent growth in new licences last year despite the Covid-19 pandemic and slowdown in the global economy.
Dubai’s Department of Economic Development, or Dubai Economy, said that it issued 42,640 new licences last year as against 40,891 new licences issued in 2019. It also recorded 15 per cent surge in licence renewals last year and said latest data reflects the resilience of the national economy.
According to a recent report of Dubai Economy’s Business Registration & Licensing (BRL) sector, 64 per cent of the new licences issued in 2020 were professional (27,307), 35 per cent were commercial (14,754) and the rest were distributed among tourism and industrial activities.
“The latest figures reflect the UAE’s and Dubai’s resilience as well as the emirate’s economic competitiveness, including its ability to provide businesses high-growth opportunities in various economic sectors,” Dubai Economy said.
Bur Dubai accounted for the largest share (22,276) of new licences followed by Deira (20,293), and Hatta (71). The top sub-regions were Al Khabaisi, Al Fahidi, Al Garhoud, Trade Centre 1, Burj Khalifa, Port Saeed, Oud Al Muteena 3, Oud Metha, and Hor Al Anz East.
Shailesh Dash, an entrepreneur and financier, said Dubai economy strengthened last year despite severe challenges posed by the Covid-19 pandemic. He said credit goes to the government’s and its visionary leaders who took timely measures to contain the damage from the Covid-19 crisis.
“Dubai announced five stimulus packages to help Covid-affected businesses, taking the overall value of business incentives introduced by the emirate’s government to Dh7.1 billion,” Dash said.
The figures demonstrate the UAE’s success in maintaining its growth and development momentum and reinforcing its position as a leading global economic and business destination. The increase in new licences also shows the private sector’s growing role as a key partner in Dubai’s economic development as well as the emirate’s constant efforts to provide a supportive environment and infrastructure for local and international businesses.
According to the report, 346,375 business registration and licensing transactions were completed in 2020, a growth of three per cent compared to 2019 (337,752). The figures highlight Dubai Economy’s vital role in providing value-added services to businesses in Dubai. The report also showed that Licence Renewals accounted for 162,762 transactions in 2020, a 15 per cent growth compared to 2019 (141,788).
“Dubai has done it again. Despite the challenging year affected by the pandemic, Dubai and its government departments have been very resilient and the various stimulus packages introduced by the government has proved to be a real boon for the businesses,” said Nazim Munshi, director at business consultancy Enterprise House.
She said professional and consultancy fields have shown more confidence.
“With the positive data of 2020 this year 2021 is expected to be even better. The business community has shown the trust they have in Dubai and UAE and such positive sentiment shall continue further with the opening up of opportunities in Qatar,” she said.
The growth validates the positive impact of the economic stimulus package launched by His Highness Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of The Executive Council of Dubai, which allowed commercial licenses to be renewed without lease contracts.
Auto Renewal via text messages accounted for 92,576 transactions in 2020, a 36.5 per cent growth from 2019 (67,813). The number of Trade Name Reservations reached 51,170, Initial Approvals totalled 40,932, and Commercial Permits touched 10,680.
Highlighting the importance of collaboration between the government and private sectors, Dubai Economy noted that the private sector’s competitive and value-added projects play a key role in advancing the emirate’s economic development.
Dubai Economy strives to deliver solutions that contribute to enhancing ease of doing business in the emirate and expanding investment and growth, which in turn help create more new job opportunities and maintain a sustainable economy.
India witnessing V-shaped recovery since June: FinMin Report
India has been witnessing a ‘V-shaped’ recovery since June with the gradual easing of restrictions on economic activities, said a Finance Ministry report.
“The sustained improvement in high frequency indicators ignite optimism of an improved performance in second half of the year,” it said
The Monthly Economic Recovery for December by the Department of Economic Affairs (DEA) also noted that the impending vaccination is set to spur the momentum in economic activity globally.
“The effective management of Covid-19 spread despite the festive season and onset of winter season, combined with sustained improvement in high frequency indicators and V-shaped recovery along with easing of lockdown restrictions distinguish Indian economy as one riding against the Covid-wave,” it said.
The agricultural sector remains the bright spot of Indian economy, with healthy year-on-year growth of 2.9 per cent in rabi sowing, accelerating tractor sales, and reservoirs’ live storage at 122 per cent of decadal average.
“This rise in rural incomes is mirrored in the healthy, though moderated, sales in passenger vehicles, two and three wheelers and tractor, and a rebound in vehicle registrations for the first time after March 2020,” it added.
Further, the industrial production growth ran parallel to the festive fervour of October and rose to an eight-month high, led by manufacturing and electricity sector. The core industries registered slight decline in November driven by natural gas and cement, while coal production, electricity and fertilizers’ production registered growth.