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License for 1000 dirhams

Faisal Mohammed Al-Shamry

July 31, 2021

The concept of economic development is rooted in the convictions and efforts of economic leaders, and their awareness of the comprehensive picture of the complex challenges of economic development, and the provision of possibilities for achieving economic diversification. With many countries and international organizations continuing to view us as an oil country, relying heavily on an economy based on fossil fuels, without alternatives (which is the case in many oil countries that still live in mirage, dreams and memories of the golden age of carbon energy), the word came His Highness Sheikh Mohamed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the Armed Forces, in 2015, from which I quote: “We will celebrate the last barrel of oil.”

Today, 70% of our national economy is not dependent on oil, which proves the achievement of economic diversification, and that the supreme economic strategic goal is turning into reality, with the presence of a comprehensive future road map, which includes the development of investment in the human element, as it is the pillar of our national gains, integrating with alternatives. A variety of fossil energy, ranging from the Barakah nuclear plant, to our investments in renewable energy, which have begun to take their natural size and weight, to be complemented by the hydrogen renaissance led by ADNOC to maintain our global position as one of the decision-makers and influential players in global energy security.

The challenges of the continued existence of mentalities that consider the role of economic development departments in collecting licensing fees to cover government expenditures, and as an alternative to taxes, indicates the existence of a gap in understanding the role of these vital institutions in overcoming obstacles to the development and diversification of the economy, and building important economic potentials for the competitiveness of the national economy industry.

I mention here the saying of one of the national leaders, among their excellencies active through social media, who spoke about the fees, the higher the merchants flee, and they searched for alternatives to invest their money. This is a thought that was discussed by a sociologist, Ibn Khaldun, hundreds of years ago.

Supporting the trend to build a knowledge economy and a diversified economy is an essential step to change the stereotype from an economy based on the oil industry to multiple industries, whose basis is innovation and competitiveness. Which owns Google, Apple, Microsoft, Alibaba, and Amazon.

These are companies, most of which were established in offices, some of which were a garage in the home of one of the founders, and as a result of God’s grace, then the founders’ diligence and excellence, and the existence of an integrated system to support entrepreneurship in the economic work environment, turned into companies whose combined capital amounts to several trillions of dollars. dollars.

To simplify the number, we are talking about more than 12 zeros, a number that some of them may find impossible to repeat or be achieved.

We mention here the saying, “The great fire is from the smallest of sparks.”

The reduction of fees that the Department of Economic Development in Abu Dhabi has done, in order to stimulate the economy and encourage self-employment, is a real support for enabling economic diversification in the emirate.

He recalls the importance of the decision-maker being close to the field, sensing the challenges, and touching the difficulties, with the aim of addressing problems and providing early treatment, in order to contribute to avoiding the cumulative consequences affecting the economy in the short, medium and long term.

For the pessimists who love to collect fees, we call for a comparison between the total sales and profits of one of the giant companies we mentioned above, which is equivalent to the income of one of them individually in one year, what is collected by several oil countries combined. Also, the value-added tax at its current value, which is 5% on sales estimated at 100 billion, for example, is equivalent to collecting five billion, a figure that many economic departments in the region have not and will not be able to collect in the traditional form of licenses, no matter how high the fees.

As we bless the enlightened economic thought and the commendable trend to drastically reduce fees in the Emirate of Abu Dhabi, we hope that the rest of the local and federal authorities will follow suit. It is high, it has not and will never be the solution to reduce government expenditures or cover its expenses, and it will only contribute to the removal of any future investments, and it will only be a gateway to the decline in competitiveness, not its development.

And because our leadership is only satisfied with the number (1), the planning, development and management of economic development comes by reducing the local fees to 1000 dirhams, as a step, and we are confident that it will follow steps.

Digital Transformation Consultant, Lecturer and Certified Corporate Excellence Expert

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