Dubai issued 4,499 new business licences in Q2 2012

DED sees 17 % increase in trade licenses issued in Q2 2012

4,499 licenses issued during April-June 2012 as against 3,859 in Q2 2011

Dubai:

The Department of Economic Development (DED) issued 4,499business licences during the Q2 in 2012, DED announced yesterday, arguing that the result reflects stability and growth across key economic sectors and business activities in Dubai.

This represent 17 per cent increase from the 3,859 licenses issued over the same period in 2011.“

The Tourism sector accounted for the largest increase (51%) in business licenses during the April-June 2012 period. Professional licenses increased by 19 per cent and Commercial licenses by 16 per cent during the same period,” said Mohammed Shael Al Saadi, Chief Executive officer of Business Registration and Licensing (BRL) division at DED.

But Abdul Hamid Radwan, a UAE-based Economist, told Gulf News yesterday that while the increase in licences was positive, all aspects should be looked at.

“The big number of new licences is a positive sign of the growth of the business sectors in Dubai, but this number should be taken in comparison with the number of licences that were cancelled in the same period.”

Radwan also warned that increasing the number of licences could be harmful.

“It is very important to look at the capital of these new companies, their activities and whether they are productive or not. The number is not always clear,” he added.

DED’s total transactions relating to business registration and licensing reached 158,174 during the second quarter of 2012, an increase of 22 per cent year on year.