Experts: Including reducing the fees for establishing new companies and exempting them from the “added value” in the first year of incorporation

10 proposals to increase Emirati investments and exports, according to the "Fifty Projects"

• Increasing exports by 10% annually needs to focus on supporting the industrial sector and facilitating investment in it.

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Economists have identified 10 main proposals or demands to support the implementation of what was stated in the "50 projects", regarding attracting foreign direct investments amounting to 550 billion dirhams, within nine years, increasing UAE exports by 10% annually to 10 major markets, and raising the value of trade exchange with other markets. Specified at a value of 40 billion dirhams annually.

The experts explained to "Emirates Today" that the 10 proposals are as follows: reducing the time and fees for establishing companies, exempting new companies from value-added tax in the first year of establishment, issuing open residencies for an unlimited period to investors, continuing to reduce and cancel government fees, and providing credit On concessional terms, reducing the cost of production and basic services, making land leases in industrial areas symbolic, expanding industries in which the UAE has achieved comparative advantages, attracting technical investments that rely on artificial intelligence, and circulating national capital to invest in the various emirates of the country.

Fee

In detail, the economist, Ali Al-Hamoudi, called for reducing the time and fees for establishing new companies, and making some fees one time, and they are not paid annually upon renewal, as happens in many major economies, noting that the unified investment platform for the state that brings together all local emirates and entities Economically, it is a major shift that enhances investment in the various emirates of the country.

Tax

Al-Hamoudi also called for exempting new companies from value-added tax and all fees in the first year of establishment, as it is the most difficult period of the project, noting that the success of any project for international companies finds resonance abroad, supports the investment reputation and revitalizes the economy, because it is accompanied by the issuance of new residences and work permits, Opening new bank accounts, renting and owning homes, and revitalizing retail trade.

international center

Al-Hamoudi pointed out that the UAE has succeeded in becoming a regional and international center for trade and re-export, which has made trade exchange with the world easier, which supports innovation in manufacturing and the establishment of factories in free zones, dedicated to packing and packaging consumer goods that are re-exported.

Al-Hamoudi stressed that the intense competition from the countries of the world to attract foreign investment necessitates the adoption of policies comparable to the major global economies, which have achieved leaps in investment and trade, noting that the UAE is no longer an emerging economy, but rather a mature economy that achieves success and growth continuously, in a safe environment. And great facilities.

Anticipating the future

Al-Hamoudi said that the UAE anticipates the future and sets policies in the medium and long term to encourage investment and trade, explaining that there are many factors that support the UAE as an international center for trade and investment, most notably its strategic location, which makes it a few hours away from three and a half billion people, or more than half of the population. The world's population, as well as the presence of infrastructure, and strong ports that play a growing role in global trade, such as the port of Jebel Ali and the port of Khalifa.

Open Stays

For his part, the economist, the general manager of the Truth Economic Consulting Company, Reda Muslim, called for issuing open residencies of indefinite duration to investors, to contribute to achieving the goals of the fifty-year plan on investment and trade, provided that these residencies continue as long as the projects exist.

He said that this encourages more investors to invest in the UAE, and encourages investments based on expansion, especially since the UAE is one of the best countries to reside, live and work.

facilities

Muslim noted the importance of many of the facilities issued by the state regarding investment, in accordance with the best practices issued in this regard, such as opening activities to 100% foreign ownership, canceling the sponsor, and announcing the issuance of golden and green residencies.

Muslim called for continuing to reconsider government fees to cancel some and reduce some, to attract more investments to reach the target in the fifty projects, especially since the government has already made strides in this regard, expressing confidence in the UAE's ability to attract large investments in the coming years after the end of the pandemic. .

concessional terms

Muslim stressed the need for the banking sector to provide credit on easy terms to new investors, especially since investors in the world do not rely on investing only on their money, but on obtaining soft loans from the banking system of the country in which they invest, especially since investors suffer from obtaining loans. new, especially during a pandemic.

cost reduction

Muslim called for reducing the cost of production in order to increase trade exchange and raise the competitiveness of UAE exports to foreign markets, and to reconsider the cost of basic services such as water, electricity and gas, in addition to reducing the rent of land in industrial areas for investors so that the rent is symbolic, or the land is owned by them through annual installments.

quality investments

In turn, the economic expert, Najeeb Al Shamsi, said that the UAE needs to attract long-term qualitative investments that provide job opportunities for citizens in the industrial, agricultural and mining sectors, stressing the importance of not focusing on investments in the service sector only, especially since qualitative investments help support exchange. trade and increase exports.

Al Shamsi called for focusing on attracting technical investments that rely on artificial intelligence, which would allow a significant increase in the UAE's exports in the future, and not focus on traditional investments that include many workers.

industry support

Al-Shamshi indicated that increasing exports by 10% annually will not take place without focusing on supporting the industrial sector, facilitating investment in it, and expanding successful industries that have many comparative advantages such as pharmaceuticals, iron, aluminum, petrochemicals, ceramics and cement industries, pointing out that the development of the industrial sector is the way. Optimized to increase exports and trade.

capital

Al Shamsi stressed the need to rotate the national capital to invest in the various emirates of the country, to expand the industrial base while facing challenges that may hinder the growth of the sector, and to enter into negotiations with the European Union to abolish the carbon tax on petrochemical exports, in which the UAE enjoys many comparative advantages.

great potential

Economist Najeeb Al Shamsi said that the UAE has great potential to attract more investments, due to the presence of advanced infrastructure, which is one of the most developed in the world, on top of which are ports, airports and the communications network, in which billions have been invested in its development, and legislation stimulating investment, as well as For the facilities that led to the reduction of some investment costs.

10 suggestions

1- Reducing the time and fees for establishing companies.

2- Exempting new companies from the “added value” in the first year of incorporation.

3- Issuing open residencies for an unlimited period of time to investors, as long as the project exists.

4- Continuing to reduce and cancel government fees.

5- Providing credit on concessional terms to investors.

6- Reducing the cost of production and basic services.

7- A symbolic rent for land in industrial areas.

8- Expansion of industries in which the UAE has achieved comparative advantages.

9- Attracting technical investments based on artificial intelligence.

10- Recycling the national capital to invest in the various emirates of the country.

Experts stressed that the UAE is no longer an emerging economy, but rather a mature economy that achieves continuous success and growth.

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