DED issued 1,298 new trade licences in June 2012

The Dubai Department of Economic Department, or DED, issued 1,298 new trade licences during June 2012, indicating a growing interest in commercial and professional activities among businessmen and investors in Dubai, it was announced on Monday.

Commercial licences accounted for 72 per cent of the total licenses issued, followed by professional (25 per cent), industrial (one per cent) and tourism (two per cent). The month of June also saw 4,998 being amended while 7,647 licences were renewed. The total number of business registration and licensing (BRL) transactions reached 48,053, compared to 43,631 in June 2011, an increase of 10 per cent.

The number of reserved trade names reached 5,157 in June, a 13 per cent increase compared to the same month in 2011, and the number of initial approvals reached 2,422, an 11 per cent increase year on year.

The total number of commercial activities licensed in June 2012 was 3453, with general trade leading the list of the top 10 licensed activities (146 licences) followed by Dyes & paints (112 licences); Tiling of floors and walls (102); Readymade garments (101); Perfumes and cosmetics (101); Carpentry and flooring (99); Sanitary extensions & wares (98); Installation of suspended ceilings and light partitions (98); Installation of air conditioning systems, ventilation and air purification (95) and Textiles and fabrics (83).

The number of professional activities licensed in June 2012 reached 897 with Residences & building cleaning services leading the list of the top 10 licensed activities in this category with 60 licences, followed by Restaurants, Sewing, Embroidery, Cafes and Printing.

In the tourism sector, inbound tourism was the leader with 10 licenses, followed by hotels, travel agent (7), hotel apartment rentals, and tourism trips.In the industrial activities category, metal for building construction, and raw plastics led the list of licensed activities with two licenses each, followed by meat products, poultry products, ships, juices, tents and umbrellas, clothes, and schools & hospitals furniture.

UAE business competitiveness on the rise: Dubai Chamber study

The UAE ranks as the third-most competitive economy in the region after Qatar and Saudi Arabia, the latest study by Dubai Chamber of Commerce and Industryfinds.

According to the World Economic Forum's Global Competitiveness Report 2011/12, the UAE ranks 27th out of 142 countries, below Switzerland (in the 1st place), United States (5th), Qatar (14th) and Saudi Arabia (17th), but higher than other regional peers, such as Oman (32nd), Kuwait (34th), Bahrain (37th) and Egypt (94th).

Moreover, according to the World Bank's Doing Business 2012 report, UAE advanced two places to 33 out of 183 countries compared to the rankings of the previous year while the country ranks 5th in the world for trading across borders, 6th for registering property and 7th for paying taxes.

Additionally, in 2012, the UAE has recorded the first place globally in the field of efficiency of governmental fiscal policy issued by the International Institute of Management Development (IMD) in Switzerland.

Further, the country's legal and regulatory environment is more than adequate as according to the World Bank's 2011 World Governance Indicators (based on figures for 2010), the UAE scores reasonably well comparing to other countries in the region for its rule of law.

The study states that though general legal standards across the region have intensely improved during the last few years, UAE's regulatory quality is improving and showing an advancing trend in recent years.

Moreover, the study indicated that government effectiveness is high and the overall freedom to conduct business is well protected under the existing regulatory environment as the UAE tax regime, which is a major attraction for foreign investors, strengthens Foreign Direct Investment (FDI) inflows, as both income and sales taxes are non-existent.

Also, the study points out that the UAE has long been an attractive investment destination. However, there are a number of challenges that need to be addressed. According to the World Bank's Doing Business 2012 report, there are aspects of the business regulatory environment that needs immediate attention, including resolving insolvency (ranked 155), contract enforcement (134), protecting investors (122) and getting credit (78). The inadequacies of the bankruptcy legislation remain a major challenge for the UAE.

Specifically, according to the same report, the time taken to resolve bankruptcy is around 5.1 years, well above the regional average of 3.4 years and the average Organisation for Economic Co-operation and Development (OECD) member countries' experience of 1.7 years.

The recovery rate (at 11 cents in the US dollar) is low in comparison with the regional average of 29.7 cents and 68.2 cents for the average OECD countries, the study concludes.

Dubai International Financial Center (DIFC) - A place for all Financial Giants

The Dubai International Financial Centre (DIFC) is the financial and business hub connecting the region's emerging markets with the developed markets of Europe, Asia and the Americas.

Since its launch in 2004, DIFC, a purposely built financial free zone, has been committed to encouraging economic growth and development in the region through its strong financial and business infrastructure. Currently, DIFC's client base comprises over 800 active registered firms, including 21 of the top 30 global banks, 8 of the top global money managers, 6 of the 10 largest insurers and 6 of the top 10 law firms in the world. More than 12 thousand employees operate in an open environment complemented by international legal and regulatory standards. DIFC offers its member companies benefits such as 100 percent foreign ownership, zero percent tax rate, with no restriction on capital convertibility or profit repatriation. DIFC has its own independent financial and ancillary services regulatory body, the Dubai Financial Services Authority (DFSA). It also has the DIFC Courts, which is an independent common law judiciary based in DIFC with jurisdiction over civil and commercial disputes in or relating to the Centre.

DIFC is built upon a modern legal, regulatory and physical infrastructure which makes it the destination of choice for Financial Services firms establishing a presence in the region.

Eligible person's to sponsor their Family inside UAE

The salary of the persons permitted to bring their families shall not 
be less than Four thousand Dirhams if the employing party 
provides them with an accommodation and Five thousand if the 
employing party doesn’t provide them with an accommodation;
And the salary shall be confirmed in pursuant of an official 
certificate attested by the interested authorities in the state;

The following groups but not others shall be allowed to bring their 
families: 
• Engineers,
• Doctors, pharmacists and nurses,
• Agricultural guides,
• Qualified accounts and auditors,
• The education members in universities and high educational 
institutions and teachers,
• Officers in the army forces and police,
• The technicians working with scientific electronic instruments 
and in laboratories,
• Advocates and Lawmen,
• The employees in oil companies,
• The qualified managers,
• The businessmen who are partners in the companies with 
limited liability provided that the partners portion is not less than 
the third or seventy thousand Dirhams as a minimum, and it 
shall be possible to add or omit from these groups with an order 
from the Council of Ministers in order to achieve the general 
welfare, and professions of these groups shall be identified in 
pursuance of the confirmed work card and contract;

Company's should submit wages report to Labor on time

Any foundation, which doesn’t commit to submit the mentioned
reports or any of them as required by the ministry, the document
required from it or presenting unreal data, is considered in a state
of violation to the rules of this resolution, and all the administrative
and penal procedures mentioned in the federal law no. (8) for the
year 1980 and the ministerial resolution will be taken against it

Labor Department can verify anytime with the Institution about Wages

The authorized department of labour has a right to ask the
foundation for a report done by a professional auditor clarifying the
way of paying the workers’ wages in the period of time specified by
the ministry. The foundation has to submit the above mentioned
report on the time specified by the authorized department of
labour.

UAE cities rated best to live and work in Arab World

The UAE cities - Abu Dhabi, Dubai and Sharjah - have been rated the best cities to live in the Arab World where there's is least red tapism, offering better job opportunities, better overall quality of life and competitive salaries, said a survey released on Monday.

The 'Top Cities of the Middle East' survey, conducted by Bayt.com and YouGov, has identified the top cities in the Middle East in terms of several wide-ranging factors - from economic to environmental - that affect residents' life.

According to the survey's respondents, the top five cities in the Arab world to live in are, in order: Abu Dhabi, Dubai, Sharjah, Manama, and Muscat. The survey factored in economic factors, entrepreneurial factors, labour rights, environmental factors, everyday life, socio-cultural factors, and quality of life.

Economic factors

Job availability across the region is considered to be "average" in most cities. Riyadh is considered to have the highest possibility of employment with 49 per cent stating that the availability of jobs is either "good" or "excellent". Doha comes second with 49 per cent, followed by Jeddah (38 per cent), Abu Dhabi (37 per cent) and Dubai (34 per cent). The city considered to have the lowest employment opportunities is Beirut.

Doha is considered to have the most competitive salaries according to 44 per cent of respondents, though Abu Dhabi follows closely behind with 41 per cent. Other cities offering compensation that is considered to be high are Riyadh (40 per cent), Dubai (38 per cent) and Sharjah (30 per cent). On the other end of the spectrum Damascus and Amman are considered to offer the lowest salaries, with 68 per cent respondents for each voting bad/poor.

The most affordable housing can be found in Sharjah, with 47 per cent of its residents claiming residential costs are "good" or "excellent". This is followed by Manama with 44 per cent, and Muscat with 34 per cent, while Damascus comes in last with 76 per cent stating that the housing price situation is either "bad" or "poor". Beirut and Algiers come in close behind with 74 per cent and 73 per cent, respectively.

Four out of ten respondents (42 per cent) in Manama state that it is it is excellent in terms of affordability in terms of cost of living. Riyadh and Sharjah, with 30 per cent and 29 per cent respectively, are also considered to be affordable, whereas Amman and Beirut are seen to be the most expensive by its residents. Manama also comes out top in terms of affordable utilities, followed by Kuwait City and Riyadh; Beirut and Amman rank lowest.

New guidelines on worker-related rule violations

Dubai: The Ministry of Labour has finalised new penalties, to be implemented in August, for a range of worker-related rule violations, a senior official has said.

The guidelines will be issued to the public next week on how the new system will work.

According to the new resolution, which will take effect from August 1, companies will face 17 new fines for breaking the labour law.

“There will be 17 new fines in addition to the previous three fines for issuing and renewing labour cards which were implemented on January 2011,” a Ministry of Labour official said.

The new set of fines will include a penalty for companies of Dh20,000 for not abiding by rules regarding the employment of Emiratis such as registering the Emirati workers with the Retirement and Insurance Authority.

Any company that delays the payment of a worker’s wages for 60 days will now face fines up to Dh5,000 per worker, and in cases where multiple workers have not been paid, the maximum fine that can be imposed on the a company is Dh50,000.

Companies found to be violating the midday break rule will face a fine of Dh15,000 and there will also be a Dh20,000 fine per case when incorrect information is entered into the wage protection system (WPS).

Dh5,000 fines per worker will be issued for fake worker-signed receipts confirming they have been paid wages, with a maximum limit of Dh50,000 in cases that involve multiple workers.

Companies will also be fined Dh20,000 for not using any hired worker for a period of two months.

“We will follow up the companies to be sure of their adhering to the Ministry of Labour’s rules and regulations,” an official from the Ministry of Labour told Gulf News yesterday.

The Ministry will monitor companies operating in the UAE and fine those who break the rules.

DED to expand e-Services through law firms

DUBAI -- The Business Registration and Licencing, or BRL, Division of the Dubai Department of Economic Development, or DED, will expand its e-Services window by offering these services through law firms in Dubai by August.

The initiative will be a significant value addition for business owners and investors as it allows them to complete business registrations faster and at their convenience.

The initiative also reflects the DED's persistent efforts to enhance the UAE's top rankings in the World Bank's Doing Business Report for 2013 and promote the country as a globally-competitive business hub.

An internationally-competitive and competent business registration system that offers added value and flexible procedures is one of the criteria against which countries are ranked in the Doing Business Report.

"DED has been utilising online platforms to offer an advanced, flexible, convenient and diverse suite of services to customers, reinforcing Dubai's reputation as one of the best and competitive business destinations. BRL services are available through three main channels - the four DED branch offices in Dubai, DED's strategic partners, and the website www.dubaided.gov.ae," DED BRL Division chief executive officer Mohammed Shael said.

"The first phase of the new initiative has been successfully implemented to provide BRL services electronically across four law firms starting August 2012. The four law firms are Habib Al Mulla & Company; Al Tamimi & Company Advocates and Legal Consultants; Holman Fenwick Willan Middle East - Dubai; and Ahmed Ibrahim Advocates & Legal Consultants," added Shael.

"BRL had organised a workshop on the business registration system for 14 representatives from law firms in Dubai. The objective was to enable law firms to use the DED's data and process BRL services to renew licences, issue initial approvals, reserve trade names and print licences for clients on the DED's website in their own premises," said Jassim Abdel Rahman Al Awadi, BRL's Development and Follow-Up Sector section head. "BRL continues to work on creating solutions that serve clients, from entrepreneurs to owners of establishments and commercial licenses. We have completed the first phase through the qualification of a number of law firms in the emirate of Dubai, and will train employees from a fresh batch of law firms during the last quarter of 2012. Thus, BRL services will be steadily available electronically across all law firms in Dubai in a short period.".

Representatives of law firms that participated in the BRL workshop were honoured by the DED. "These law firms confirm the strength of the strategic partnership between the DED and the private sector and we therefore value their efforts. Together with the DED, these firms represent the strong linkages and reputation that qualifies Dubai," said Shael.

Deadline to re-register your Etisalat, Du SIM cards begins today

Sim holders who fail to register face service disconnection The UAE's two telecom service providers on Tuesday launched an 18-month mobile phone number registration process with the aim of restoring discipline to the market and those who fail to register risk losing service.

Etisalat, one of the largest telecom firms in the Middle East, and the newly-established Du have set up 350 centres to receive nearly 12.5 million mobile phone subscribers who need to update their personal data in the service.

The "my number" process has been ordered by the Telecommunications Regulatory Authority (TRA), which oversees the telecom services in the second largest Arab economy, with the aim of ending malpractices resulting from Sim swap, loss, misuse or being given by their owners to other persons.

"A study conducted by TRA has shown that many SIM holders give their cards to other persons, who abuse them. This is resulting in criminal and civilian offences," said Mohammed Al Ghanim, TRA Director General.

"Using the SIM cards by persons other than their owners could bring real problems to their owners as those persons could be involved in offending or defaming others either through phone calls or texts. We want to put an end to such practices," he told Alittihad.

The paper said the registration campaign would be in six stages and last 18 months, adding that 100 registration centres had been set up by Etisalat and 250 by Du through the UAE. It said both companies would send texts to their subscribers asking them to register before the end of the deadline.

"GSM subscribers who fail to report to those centres to update their data and register their SIM cards will have their service disconnected," the paper said.

The UAE has one of the highest mobile phone penetration rates in the world, standing at around 155 per cent at the end of June.

Women need to exit country for job visa

Women must obtain air ticket, bring it to the residency department in order to cancel her visa.

Dubai: Women on relatives’ sponsorship have to leave the country before they can transfer their visa to employment, according to officials from the residency department.

Officials said that any woman sponsored by her relatives and wishing to transfer her sponsorship to employment visa must leave the country in order to be able to be issued the employment visa.

The officials said that if a woman is on her husband, father, brother or any relative’s sponsorship and she want to transfer her it to her employer, the relative must obtain an air ticket in her name and bring it to the residency department in order to cancel her visa.

The officials explained that the woman will be given seven days in order to leave the country.

“When the employment visa from the ministry of labour is ready then the woman can enter the country again,” the officials said.

Previously, the move was only applicable to expatriates who entered the country on visit visas and wished to change it to employment. Adjusting the legal status for everyone used to cost Dh500, without the need to leave the country.

The official said that this facility does not exist any more and all who are on their relatives’ sponsorship must leave the country to obtain employment visa.
People questioned the move and said that this will make their life difficult.

“Why does a mother or wife or daughter living in the country on residence visa have to exit the country in order to obtain employment visa? What is the use of this move,” asked Raji from India.

Les George from Philippines said his wife has been on his sponsorship for almost 10 years and now she has found a job but he was surprised when asked by the residency officers that he should bring an air ticket for her in order to cancel her visa and that she should leave the country in order to transfer her sponsorship to the employer.

“I visited the residency department today with the hope of cancelling my wife’s residence Visa, so that she can transfer to her company sponsorship. My wife, Mary, works as a Store Manager for a private company here,” he said.

“I was advised by residency officers to first pay all outstanding fines that may have incurred due to her overstaying,” he said.

“As per the instructions I visited the bank and made the necessary payments,” he said.
He added that following this he approached the officer at the counter, who had earlier assured that should he clear all outstanding fines, and acquire a valid Transfer Work Permit from the Ministry of Labour, he could transfer his wife’s visa and that she does not need to leave the country for visa change.

“However, today I was told that this was not possible and that she will have to leave the country in order for her visa to be cancelled, and that only after this, could her company apply for a new Visa despite the fact the residency staff themselves having told me last week to obtain for her the transfer work permit from ministry of labour,” he said.

Les said that despite the fact that he is worried about his wife who has to go to Kish Island for visa change, he has no choice but to send her.

“When I checked with the officer why she should exit and come despite the fact that he himself said to me last week that there was no need for her to exit, the officer said ‘thats was last week and we are in another week’,” he said.

“It takes us time to obtain the permit from labour upon the instruction of the residency officers and that increases my wife’s fine after I had paid and cleared the fine. If the officer told me from the beginning that this was not possible, he would saved his time, our time and money,” he said.

In 2004, the UAE government took decision to allow expatriates to amend their visa statu following a Kish Airline Fokker-50 crash as it was approaching Sharjah Airport on February 10. The plane was carrying people who had flown from the UAE to Kish Island so that they could change their visa status. Forty-eight people were killed in the crash, with just three survivors. After the crash, the UAE amended its visa rules, so that people in the country could change a visit visa to an employment visa by paying a Dh500 fee.

Advertisers loosen their purse strings in the UAE

With June proving an exceptionally busy month and spending patterns holding steady in the other five months, the UAE was easily the top regional market for advertising. The first-half of the year saw advertiser spending $755 million (Dh2,773 billion). This represents an 8 per cent gain over the $698 million advertisers ploughed in during the corresponding period of 2011, an indication that key sectors such as retail, travel and hospitality have the confidence to mount major ad campaigns. Saudi Arabia ranked second in the regional rankings with $752 million, up 16 per cent from a year ago.

Estimates suggest that advertisers loosened their purse strings and spent $146 million last month, according to data from Pan Arab Research Centre (Parc). The numbers are based on the official media rate cards and do not take into account any discounts that media owners provide.

Local newspapers and magazines pulled in more ad dollars during the first-half, by 4 and 7 per cent respectively, to total $443 million and $119 million, based on Parc projections. Outdoor, helped by the ad blitz during Dubai Shopping Festival (DSF), was another winner with a 50 per cent increase over 2011 and totalled $106 million. Television saw a drop, by 22 per cent, to $50 million. The estimate for radio stood at $27 million. Spending on digital media is not tracked. “A growth in ad spend, albeit single digit, is indeed healthy; DSF and DSS always create spikes in the first-half, but this year DSS started earlier due to Ramadan and will be shorter,” said Nitin Puri, executive director at BPG Group. “In fact, school holidays started 10 days into DSS and leading to a quieter than usual start.”

At $104 million, malls and stores were heavy spenders, reinforcing their status as a key component of the local economy. The travel and hospitality sector accounted for $70 million, while automotive brands and their dealerships spread out $51 million.

The government sector and its many agencies continued to be active in getting their messages across and spent $175 million in the process.

“Automobile, furniture, jewellery and general retail have been reasonably active,” said Tanvir Kanji, head of Inca Tanvir. “As to whether there will an increase in media rate cards for the new season, it would be more logical if the hikes were based on parameters that media planners and buyers consider — circulation and reach, audience profile, editorial environment and value additions offered to regular advertisers.

“In the present scenario, I would imagine rates would stabilise and, mind you, advertisers have never understood the logic of rates going northwards with each calendar year.”

Abu Dhabi set for a massive hotel boom

Oversupply to affect occupancy rates and room rates this yearAbu Dhabi: About 20 new hotels are expected to open in and around Abu Dhabi city over the next three years, according to TRI Hospitality Consulting , a Dubai-based company which provides hotel consultancy services.

Among them, there will be at least five Marriott hotels, including a 60-room Marriott Exclusive Apartments, a 195-room Courtyard by Marriott in the Central Market, a 244-room Edition hotel, also a Marriott brand, and a 532-room Ritz-Carlton, one of Marriott's luxury brands.

Other additions include five new properties by Rotana, including two in the Capital Centre, the development around Abu Dhabi National Exhibition Centre, a 414-room Centro Rotana Capital Centre opening this year and a 300-room Capital Centre Rotana opening next year.

Also announced is a 400-room Saadiyat Rotana Resort for 2015 and a mammoth 600-room Arjaan next to Marina Mall, according to TRI Hospitality Consulting data. 

It's a market that analysts believe will continue to suffer from oversupply until demand starts to catch up.

According to the Abu Dhabi Tourism & Culture Authority (TCA) Abu Dhabi, the number of rooms available has increased by 13 per cent since May 2011, with hotel occupancy in May reaching 63 per cent whch is a seven per cent slip on last year. 

Total hotel revenue surprisingly increased three per cent on May 2011, the TCA Abu Dhabi reported.

"The problem in Abu Dhabi is... it's got an oversupply," said Peter Goddard, managing director of TRI Hospitality Consulting in Dubai.

It's a situation that he says will probably affect both average occupancy rates and average room rates this year. "In order to attract people you're going to drop your rates," he said.

According to TRI, since January of 2012, hotels have seen ARR (average room rate) and RevPAR (revenue per available room) fall by 16.5 per cent and 15.6 per cent respectively resulting in a 20.8 per cent fall in profitability (GOPPAR, or the gross operating profit per available room).

"We do not envision the situation to improve in the capital in the near future as corporate and conference demand continues to slow on the back of lower business activity, especially in the wake of the continuing European debt crisis" said Goddard.

Ruprecht Schmitz, General Manager at Millennium Hotel Abu Dhabi, said that despite the increase in the number of rooms in the market, the rates are expected to stay in the same region as last year. "Naturally becaue of the increase of availability and new openings and the room stock in Abu Dhabi, there's slight pressure on the rates," he said.

Michel Koopman, Director of Operations Middle East for Anantara Hotels, Resorts & Spas and General Manager, Eastern Mangroves Hotel & Spa by Anantara, had told Gulf News at the time of the opening that the market is going to be tough. "We know the numbers and you know the numbers," he said.

Goddard said that the hotels at the end of the day won't be making as much as they used to, with the more upscale ones taking a much stronger stand on rates. "If they drop their rates it's going to affect their overall perception."

While it's generally easier to make more money in the hotel industry than it is in other parts of the world, Goddard said that a tough market in Abu Dhabi only means that the new hotels will now have to expect their return on investment to take longer than what it used to a few years back.

Abu Dhabi enforces visa-rent rule on private sector

But authorities say no need to have tenancy contract attestedAbu Dhabi began enforcing rules requiring private sector expatriate employees to submit a tenancy contract for their visa renewal but exempted them from having it attested, the semi official daily Alittihad said on Wednesday.

Immigration authorities said all private sector employees applying for residence or visit visa must now submit a tenancy contract, which should also be accompanied by a salary letter from employers, the paper reported.

"The rule for submitting a tenancy contract for visa issuance or renewal has not been suspended and is in force on all private sector employees," the Abu Dhabi-based daily said, quoting immigration officials.

"But they can submit those contracts without having them attested...in this case, they should present a salary letter from their employers."

The paper said the decision to exempt applicants from attesting their rent contracts at the Municipality is intended to facilitate the issuance or renewal of their visit and residence visas, adding that many foreigners live in apartments inside villas, which can not be attested.

"Those who live inside villas could find it very difficult to have their visas renewed...this decision will resolve the problem," one official said.

"We want to facilitate their applications particularly at this stage as thousands of expatriates have their visas expire in summer and want to have them renewed before going home for their annual holidays."

No service tax on foreign remittances to India

New Delhi: The government has said that remittances sent from overseas will not be liable for service tax charge, putting to rest the confusion that had arisen after the presentation of the union budget for 2012-2013 in March.

“The matter has been examined and it is clarified that there is no service tax per se on the amount of foreign currency remitted to India from overseas,” the Central Board of Excise and Customs (CBEC) said in a circular on Tuesday.

The circular clarified that remittance does not comprise a “service” and thus is not subjected to service tax.

The clarification will be a major relief for the millions of the Indian diaspora living abroad, especially those working in the Gulf countries, who are the major source of remittance to India.

Confusion related to the service tax on remittances was created after the then Finance Minister Pranab Mukherjee in the union budget for 2012-13 presented in March this year proposed to levy tax on all services except those in the negative list.

Various organisations and political parties had asked the central government not to levy any such tax on remittance.

The CBEC further clarified that any fee or conversion charges levied for sending remittances are also not liable to service tax as the person sending the money and the company conducting the remittance are located outside India.

“Such services are deemed to be provided outside India and thus not liable to service tax,” it said.

“Even the Indian counterpart bank or financial institution who charges the foreign bank or any other entity for the services provided at the receiving end, is not liable to service tax as the place of provision of such service shall be the location of the recipient of the service, ie outside India,” it added.