Abu Dhabi has just announced new initiatives to boost the UAE economy. This is under the AED 50 billion Ghadan 21 initiative.
The most exciting of these announcements is the ‘instant license’, where businesses can register, pay and get licensed in minutes. The cost of licensing has also been reduced, based on announcements made late last year. In effect, ease of doing business in Abu Dhabi has improved, and will continue to improve as the new Ghadan 21 initiatives kick in.
Other announcements include a SME bank-loan guarantee scheme, which is also a game changer. The Abu Dhabi Government, in partnership with First Abu Dhabi Bank, will guarantee up to 75 per cent of bank loans to small and medium-sized enterprises, in an effort to reduce risk and encourage lending. This initiative will also be available to SMEs owned and managed by expatriates.
Industries will be able to apply for discounts of up to 40% on their energy tariffs. The new industrial tariffs will be determined by an established scoring mechanism based on three criteria: economic impact, productivity and electric load.
All suppliers to government-owned companies will now be promptly paid within 30 days. This will help such suppliers manage their cash flows more effectively. Click here to know more on how to setup a company to undertake government contracts.
Other initiatives include incentivising the private sector to build on greenfield sites, and setup eco-tourism hubs in the emirate. A new AED 4 billion research and development fund has also been announced to help private companies develop innovative technologies.
Click here to know more on how to do business in Abu Dhabi.