Dubai Startup Hub launches eight guides to support entrepreneurs
Guides cover key sectors of Fintech, Healthcare, Transportation, Education, F&B, Social Impact, Sustainability, and Travel, Tourism & Hospitality
The Dubai Chamber of Commerce and Industry’s Dubai Startup Hub initiative has launched eight guides to help startups in the UAE do business, as the Chamber concluded its fifth and final ‘Networking Series’.
The new guides cover eight key sectors, namely, Fintech, Healthcare, Transportation, Education, F&B, Social Impact, Sustainability, and Travel, Tourism & Hospitality. They provide ample resources – including relevant data, statistics, opportunities, and legislation – for entrepreneurs looking to launch startups in each of the eight sectors, additionally offering advice on how to apply for licences.
The guides also provide a comprehensive list of business incubators and accelerators that can help entrepreneurs grow their startups, as well as events and conferences that focus on their specific sectors.
The fifth edition of Dubai Chamber’s Networking Series drew more than 360 participants, 22 per cent of them Emirati entrepreneurs, in addition to startup owners from around the world tuning in for the virtual event.
“The guides are an innovative new tool to help promising startups in each of the target sectors,” asserted Natalia Sycheva, senior manager, Special Projects and Entrepreneurship at Dubai Chamber. “They form part of the Chamber’s plan to address the repercussions of the Covid-19 pandemic, where a significant chunk of our investments has been earmarked for knowledge-building and providing information for entrepreneurs and startups at this critical time.”
“The Dubai Startup Hub’s mandate is to support emerging companies and help them understand and navigate the procedures for establishing businesses in Dubai,” she explained. “The initiative serves to facilitate the exchange of knowledge and lays solid foundations for partnership and cooperation, all in an effort to drive growth in the emirate’s startup scene. This ultimately boosts Dubai’s entrepreneurial ecosystem and strengthens its position as a global destination for new businesses.”
Dubai Chamber’s Networking Series has drawn more than 1,650 participants throughout its five editions, including entrepreneurs, startup founders, and investors, where a total of 48 meetings were held. Attendees came together to showcase success stories, explore ways to overcome challenges, highlight the necessary tools for business development, and help create an environment for networking and building new relationships.
Established by Dubai Chamber in 2016, Dubai Startup Hub is the first initiative of its kind in the Middle East and North Africa region, with a mandate to emphasise the value of public and private sector collaboration, in addition to fostering innovation and entrepreneurship as key drivers of the economy in Dubai and the UAE.
The initiative provides a multi-programme platform for entrepreneurs from around the world to explore business opportunities in Dubai, while also enabling them to benefit from a set of initiatives and services, such as the Market Access Programme, Emirati Development Programme, Dubai Smartpreneur Competition, and the Co-Founder Dubai Programme, among others.
India’s economy most resilient in sub-region: UN
CEBR said the current growth trajectory will see India become the world’s third largest economy by 2030, overtaking the UK in 2025, Germany in 2027 and Japan in 2030
India’s economy, currently the sixth largest in the world, would be the “most resilient” in the sub region of South and South-West Asia over the long term, according to a report by the United Nations.
The country’s positive economic growth in the post-Covid-19 era, and its large market will continue to attract investments, driving resilience, according to the report compiled by the United Nations Economic and Social Commission for Asia and the Pacific.
The report, titled ‘Foreign Direct Investment Trends And Outlook In Asia And The Pacific 2020/2021’, said that inward foreign direct investment flows to South and South-West Asia slightly decreased by two per cent in 2019, from $67 billion in 2018 to $66 billion in 2019. In the first three quarters of 2020, the value of greenfield FDI inflows declined by 43 per cent compared to the same period last year, signalling a reversal of the growth trend in the sub region.
Most of the greenfield flows (87 per cent) were destined for India, although the overall greenfield inflows to the country declined by 29 per cent. Equally, FDI from India is projected to decline in 2020, with the largest MNEs revising their earnings down by 25 per cent in early 2020 due to the impacts of the pandemic.
“However, India’s economy could prove the most resilient in the sub region over the long term. FDI inflows have been steadily increasing and positive, albeit lower, economic growth after the pandemic and India’s large market will continue to attract market-seeking investment,” the report said.
India’s fast-growing telecom and digital space, in particular, could see a faster rebound as global venture capital firms and technology companies continue to show interest in the country’s market through acquisitions, it said. It also noted that Facebook and Google’s investment in Jio Platforms in 2020 worth $5.7 billion and $4.5 billion respectively were testaments to this trend.
The UK-based Centre for Economics and Business Research (CEBR) said the current growth trajectory will see India become the world’s third largest economy by 2030, overtaking the UK in 2025, Germany in 2027 and Japan in 2030.
The International Monetary Fund has said that the Indian economy would contract by a massive 10.3 per cent this year, but is likely to bounce back from the Covid-19 induced recession with an impressive 8.8 per cent growth rate in 2021.
Most Asia markets advance after Wall Street sets new records
Tokyo and Wellington piled on more than one percent each, while Hong Kong, Sydney, Singapore, Manila and Jakarta also enjoyed healthy gains.
Asian markets mostly rose on Tuesday following a record-breaking lead from Wall Street as investors cheered the passage of a huge US stimulus bill, which has helped temper fears about surging coronavirus infections and a new, fast-spreading strain of the disease.
With Donald Trump’s decision to finally sign off on the $900 billion rescue package and a post-Brexit trade deal now agreed, the mood on trading floors is a little lighter heading into the new year.
News that more vaccines could be rolled out soon was also providing a lift, even as governments around the world are forced to impose lockdowns and other strict, economically painful measures to contain surging Covid-19 cases.
“Where we are right now in the equity market is somewhat of a sweet spot,” Michael Cuggino, at Permanent Portfolio Family of Funds, told Bloomberg TV. “We’ve got stimulus, likely more on the way.
“You’ve got great comps on earnings going into next year with respect to equities, and you have a pent-up demand situation as the economy both in the US and globally comes out of Covid.”
Trump had held off signing the stimulus package for almost a week saying it did not provide enough cash to Americans and calling for handouts to be jacked up to $2,000 from the $600 amount offered in the initial bill.
Democrats agreed more was needed for people and on Monday the House of Representatives approved a motion to increase the payments, though it will likely meet resistance from Republicans in the Senate.
President-elect Joe Biden, asked by a reporter Monday if he favoured raising the payouts to $2,000, replied, “Yes.”
All three main indexes ended at record highs, as did Germany’s DAX, and most of Asia followed suit.
Tokyo and Wellington piled on more than one percent each, while Hong Kong, Sydney, Singapore, Manila and Jakarta also enjoyed healthy gains. Shanghai barely moved, and Seoul and Taipei were slightly lower.
The cash handouts will “provide that immediate key consumption bridge through the first quarter until the vaccines become more widely distributed”, said Axi strategist Stephen Innes.
“The stipends will arrive quickly and are spent rapidly, providing the US economy with immediate retail sales spending bonanza boost. This splurge could be multiplied by three if the Senate agrees to rubber-stamp support for increased Covid cheques.”
Tokyo – Nikkei 225: UP 1.6 percent at 27,292.37 (break)
Hong Kong – Hang Seng: UP 0.8 percent at 26,528.34
Shanghai – Composite: FLAT percent at 3,398.16
Pound/dollar: UP at $1.3475 from $1.3451 at 2245 GMT
Euro/pound: UP at 90.80 pence from 90.71 pence
Euro/dollar: UP at $1.2235 from $1.2213
Dollar/yen: UP at 103.80 yen from 103.76 yen
West Texas Intermediate: UP 0.7 percent at $47.96 per barrel
Brent North Sea Crude: UP 0.7 percent at $51.20 per barrel
New York – Dow: UP 0.7 percent at 30,403.97 (close)
London – FTSE 100: UP 0.1 percent at 6,502.11 (close)
How Audit Firms Can Help You to File ESR Notification & Report In Such a Short Notice?
The companies operating in the UAE (mainland, free zone & offshore) are once again facing a compulsion to meet the Economic Substance (ESR) filing requirements as the deadline is around the corner. The UAE-based companies that conduct the relevant activities need to demonstrate adequate economic substance and file the notifications and submit the reports before 31st December 2020.
Companies that have already filed the ESR notification must submit the notification again to the relevant regulatory authorities in sync with the Cabinet Resolution 57 of 2020 which updated several clauses in the previous law. Since the deadline is approaching fast, many companies are floundering to get prepared. Seeking expert assistance of reputed audit firms in Dubai, UAE is the most reliable route to ensure your business entity is complying with the ESR filing requirements. You also need to ensure that your company is aware of the following requirements to be on the right side of the law.
ESR Filing Deadlines
In the updated ESR scenario, businesses that fall within the scope of the regulation must execute the ESR filings through an online portal operated by the UAE Ministry of Finance. The companies with the financial year commencing on or after 1st January 2019 and ending on or before 30th June 2020 must consider the deadline as 31st December 2020. The deadline is the same for those companies with the financial year starting on or after 1st January 2019 and ending on or before 31st December 2019. Your trusted audit firms in Dubai have more clarity on the reporting period, and deadlines and they will ensure that your business abides with the obligations.
Insights on Updated Definitions
A significant area where you need to focus before sending the ESR notifications or returns is the change in the definitions of key terms. For example, a Licensee now means any corporate entity incorporated inside or outside the UAE or an unincorporated partnership in the UAE that conducts a Relevant Activity. Natural persons, sole proprietors, trusts and foundations that were earlier considered as Licensees under the ESR no longer meet the scope of ESR.
Updated Notification & Reporting Requirements
Companies that file the ESR notifications now need to furnish additional details such as the jurisdiction of the Parent Company, Ultimate Parent Company, and Ultimate Beneficial Owner (UBO) who claim to be tax resident. Apart from that, the licensees that are required to file the ESR Report must submit a copy of financial statements. Audit firm in Dubai provides services related to the UBO mainly assistance in maintaining the Real Beneficiary Register. Such assistance gives great leeway to the companies as they can easily submit the UBO details in the ESR reports.
Eases the ESR Filing Requirement for Companies
Article 8 of the Cabinet Resolution 57 of 2020 sheds light on the notification and reporting requirements that the entities must meet to comply with the ESR. It states that every Licensee is now required to file annual ESR notification to the relevant Regulatory Authority. Audit firms in Dubai will assist you in filling the notification with the following mandatory details :
1. Whether the business entity has carried out a relevant activity or not
2. Whether the company has generated any income from the relevant activity
The notification will be filed through the Ministry of Finance’s dedicated online portal. The notification will be processed between the regulatory authorities and the Federal Tax Authority (FTA), which is the National Assessing Authority for the ESR.
The FTA, in its capacity as a National Assessing Authority, will oversee compliance and control of the Updated ESR. FTA, among other things, will also assess if the Licensee has met the Economic Substance Test. It will also decide the necessary course of action to follow if your entity fails to meet the ESR test.
A Helping Hand to Avoid Penalties
Incurring penalties for ESR non-compliance is an undesirable scenario for the smooth functioning of your companies in the UAE. Availing the bespoke services of the UAE audit firms would save the businesses from the hefty penalties.
Here is the list of penalties as per the Cabinet Resolution 57 of 2020 :
1. Companies that fail to submit the annual notifications, or any other mandatory documents/ information will have to pay a penalty of AED 20,000
2. Filing inaccurate information on the notification or ESR Return attracts an administrative fine of AED 50,000.
3. Companies would face a penalty of AED 50,000 if they fail to file Economic Substance Returns or fail to meet the Economic Substance Test.
Penalties of this range could hurt the reputation of the companies apart from hitting them financially. Repeated violations would also lead to license cancellations which makes it necessary for the companies to file the ESR notifications on time.