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.

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.

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.

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.

No private practice for MOH non-UAE doctors

Expatriate physicians working full-time in MOH government facilities and part-time in the private sector in Dubai will no longer be allowed

Dubai: Expatriate physicians who work full-time at any Ministry of Health (MOH) government facility will no longer be allowed to work part-time in the private sector in Dubai beginning October 1, a senior Dubai Health Authority (DHA) official told Gulf News yesterday.

“The [affected people] are only the non-UAE physicians who are working full-time in MOH and part-time in the private sector in Dubai,” Dr. Ramadan Ebrahim, director of DHA Health Regulation Department, said.

A DHA circular released on July 4 said that all DHA part-time licenses for non-local physicians will be cancelled by October 1, 2012. Non-complying professionals and facilities will be penalised. The decision came following a directive from the MOH in April.

Dr. Ebrahim said around 300 physicians will be affected by the decision. However, if these doctors still want to practise in the private sector of Dubai, they have an option.

“We will automatically cancel their licenses by 1st of October, unless they resign [from MOH]. If they resign there, then we will continue their license,” Dr. Ibrahim said.

Dr. Ebrahim clarified that no other healthcare professionals will be affected by the decision.Doctors in Dubai said they do not see any problem with the implementation of the new rule by October. Dr Sreekumar Sreedharan, an Indian specialist physician in Dubai, told Gulf News that this decision should not have any serious effect in the health sector.

“It should not be a problem at all for the health sector. If there is going to be an effect, it will be for the doctors who are in the public sector as they may lose some extra income and benefits. They usually work in the private sector outside their working hours, so this is not a very serious issue,” Dr. Sreedharan said.

“The idea of getting public sector doctors to work in the public sector alone is a good step because this will help curb any unethical practices that may happen from the practice. This is in fact being done in other countries as well,” Dr. Suresh Menon, medical director and chief internal medicine specialist at Lifeline Hospital, told Gulf News. “Practising in the two sectors gives you a dual mentality and will confuse your outlook because private and public practice are two different things. This DHA step is actually well-advised.”

Need License for Fishing in UAE

Dh500 fine for indiscriminate fishing in Dubai

Dubai: 
Indiscriminate fishing in Dubai can draw a fine from Dh100 to Dh500, a senior Dubai Municipality official has said.

The civic body issues fishing permits to people but there have been incidences of people going in for fishing around the Creek, Mamzar Park and open beach areas which has led the civic body to control the activity. The Environment Emergency office of the municipality has launched a new campaign in this regard.

“Indiscriminate fishing, combing all small creatures living by seaside is punishable and may draw imposition of fines up to Dh500,” said Khalid Suletin, Head of Environment Emergency Office at Dubai Municipality

The municipality is taking a serious view of people who fish in coastal areas without permission. The officials of the department will be patrolling the coastal areas to check illegal fishing.

Emphasising that people must keep in mind the impact of their actions of the environment, Suletin said: “People go to these areas and hunt for crabs, lobsters, whatever they may get, which is a big threat to marine stock.”

The Dubai Municipality issues two types of licences for recreational fishing — line and hook, either in coastline or with leisure boat.

Obtaining a licence is a must for individuals who want to go for fishing. This is done in accordance with the Federal Law No. 23 of 1999 on the Exploitation, Protection and Development of Aquatic Resources in the UAE and the Federal Law No. 24 of 1999 for the Protection and Development of Environment.

Suletin said the civic body grants licences only if the applicants adhere to certain requirements. “We are issuing fishing permits to people. But it is never meant to spoil our marine wealth. Permits are given with certain conditions, ” he continued.

UAE well positioned to host World Expo 2020

Seoul: The UAE is well positioned to host a very special World Expo 2020 in Dubai, the first ever in the Arab world, says Reem Ebrahim Al Hashemi, Minister of State and Managing Director of the Higher Committee for Hosting the World Expo 2020 in an interview with KBS TV, the country’s state-run television network.

Appearing in a TV special dubbed “We’re here at 2012 Yeosu Expo” which went on air on Sunday afternoon (11.10am UAE time) over KBS main channel 9 nationwide, Reem said: “We are very confident of our ability to host this major event. I just hope that we have the opportunity to do so and that we can welcome you to a very special Expo in Dubai in 2020.”

The programme was taped on June 14 when Reem was in Korea to attend the UAE Day celebrations held at the Yeosu Expo UAE pavilion at the head of a 100 plus UAE delegation. The program was hooked up with KBS TV international service as well.

While praising the unlimited support given by the UAE government to enable strong participation at Expo 2012 Yeosu together with a series of previous Expos over more than 40 years since before the State was even established, Reem made it clear that the UAE endorses and embraces Bureau International des Expositions (BIE)’s own vision for Expos that foster education through experience, development through innovation and experimentation through cooperation.

Reem said:” We truly believe in the power of Expos to create a better world. The UAE has a deep insight into the benefits of shared experiences, knowledge and skills. We have over two hundred nationalities living with us and we have no doubt that this has been one of the driving forces for our progress. Multicultural exchange has been a founding principle of the Emirates long before the country was formed in 1971.”

“And just as we celebrate the mix of cultural diversity and innovation that has been our strength, so we understand how expos can play a similar role, enabling different nations to contribute their respective knowledge in the battle to face the major challenges for humanity.” Reem went on to say when asked by reporters what motivated Dubai to become a candidate city to host Expo 2020.

Touching on the competitive edge of Dubai over other candidate cities, she noted that over 60 million visitors travel through UAE’s six international airports each year, and with transport, social and economic infrastructures that are second to none,

“We are promoting Dubai as a host city for Expo 2020 under the theme of Connecting Minds, Creating the Future. I will do my best to achieve such goal while in Korea,” Reem said pointing out that Dubai is the Arab world’s first global city of the 21st century.

The UAE is a strong, vibrant and modern nation open to the world. One-third of the world’s population lives within a four-hour flight of the UAE, two-thirds within an eight-hour flight, top campaigner of Dubai 2020 Expo added.

Among other strong points of Dubai are its strategic location, advanced world-class infrastructure and mature service sector which has made Dubai the gateway to Europe, Asia and Africa, she explained, pointing out that the city has already developed a robust network of economic and urban infrastructure and more are in the pipeline.

She was referring to Dubai’s logistical reach by both sea and air which is unparalleled. DP World, the world’s fourth largest seaport operator, manages more than 60 terminals across six continents.

Dubai’s powerful air transport capabilities which are embodied in its two airports Dubai World Central and Dubai International Airport, making them the fourth busiest in the world.

She then noted that UAE is one of the safest countries in the world as a home to over 200 different nationalities that live and work together harmoniously under tolerance policies of the UAE leadership without being discriminated against because of their ethnic background, religions and beliefs

“Given its growing prominence in regional and global affairs, the United Arab Emirates is the most suitable host for the World Expo. We want to bring the expo to the world and the world to Dubai,” Reem concluded.

The KBS special programme with focus on Dubai’s bid to host 2020 World Expo was also watched by hundreds of thousands of Korean expatriates residing in the United States and Southeast Asian countries through KBS TV global service network hooked up with satellites. KBS TV earlier played up prominently news about UAE National Day and an exclusive interview with Reem during its prime time news programmes on June 14 and 15.

With 49 days to go before the end of 2012 Yeosu Expo, the number of visitors to the Expo 2012 is likely to top 2,200,000 on Sunday, organizers of the Yeosu Expo said on Sunday.

UAE could need more than 12,000 doctors by 2014

Dubai: The UAE is facing a shortage of doctors, and the number could go up to 12,920 by 2014, according to a new study.

The study titled ‘UAE Healthcare Sector Forecast to 2014’was published by research company RNCOS. The reason cited by the paper was that the UAE lags behind the US and some European countries — not in the quality of healthcare, but rather in the ratio of doctors per thousand people.

To close this gap, the Saudi German Hospital-Dubai has increased efforts to draw more talent. Dr Mohaymen Abdelghany, CEO of the hospital, pointed out that the demand is both quantitative and qualitative. In a media statement, he said, “Our criteria regarding qualifications and experience is stringent, and was specifically crafted to ensure we hire only the best.”

The demand for more doctors will impact the health sector. According to industry experts, it will spark increased competition for top doctors and patients will benefit from the wider range of specialists.

UAE seeks own brand logo

Dubai: In a country now home to some of the most famous brand placements in the world, the UAE has launched plans to come up with its very own brand logo to promote itself locally and abroad.

Two months after the UAE was named the second preferred international market by the world’s top 326 retail brands, the UAE is asking the public’s help to select its new future logo.

Five logo finalists have already been chosen and their work has been posted on the website of His Highness Shaikh Mohammad Bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai.

The Ruler has also posted the logo launch on Twitter.

Visitors to the website are being given the opportunity to select their favourite brand logo that best represents the country.

“The nation brand logo that you are going to choose is a promotional logo for the UAE. It shall be used locally and internationally to promote a unified identity for the UAE and express its unique aspects setting it apart from other nations around the world,” the website stated. “The UAE nation brand is to be used as a visual identity for the nation, to communicate to the world its vision and tell its story. The nation brand must reflect the UAE’s global economic and political status and its diverse and attractive cultural and business environment, which make it a leading destination for tourism, economic, and cultural activities.”

The push to brand itself is a wise move in a world with a growing roster of big brand logos and recognisable names, said a Dubai-based branding expert on Sunday.

Haroon Popal, creative manager at Creative Studio, is a specialist in branding, design and logos and said that the branding move “means the UAE wants to position itself in the world to be recognised. Brand awareness is very necessary.”

Branding, he said, is more than just picking a graphic and a fancy font.

“When you brand something, it adds value, whether it’s a company or a country. It becomes valuable,” Popal said.

Constantly exposing a brand to the public also helps create a sense of awareness and identity that people begin to recognise automatically,

“When you see something again and again, you start building trust. It will create recognition, build trust. It also helps one to identify itself a certain style,” Popal said.

Whenever an entity chooses to rebrand, it means they are seeking increased awareness about who they are, what they offer and the values for which they stand, he said.

Voting for the new logo semi-finalists began on Sunday and will remain open until July 18 - visitors to the website can only vote for one design.

'Bogus recruitment firm ruining peoples life'

Watch out

Fraudulent recruitment agencies lure job-seekers by advertising non-existent jobs  in newspapers and on various websites. Respondents are asked to come to their offices where they are asked to pay money for registration and other charges.  Do not pay them. It’s illegal. If they make you an offer that’s too good to be true, in all probability it is. 

Over 70 families duped by scammers face eviction in Al Nahda

Dubai: More than 70 families in a building in Al Ghusais are facing eviction before their tenancy contract ends following a dispute between the landlord and a real estate firm whose owners have gone missing.

Residents of the new 12-storey Dawn building with 96 units in Al Nahda 2 said they had been given until September 14 to vacate their units or sign a new contract with the landlord.

Most tenants signed their contract and gave one cheque to MFR Properties LLC, who had shown them a letter of authority from the landlord before the agents did a runner. A number of tenants had just moved in to their apartments in March.

“We’re being made scapegoats in a dispute between the real estate agency and the landlord,” said Suresh, an Indian salesman whose tenancy ends in November.

The phone number listed on MFR’s receipts no longer works and XPRESS’ e-mails to their Yahoo account went unanswered.

XPRESS saw an authorisation letter dated July 3, 2011 stating that the Emirati landlord, Madya Butti Mujren Sultan, had authorised MFR to represent her to prospective clients. But the Real Estate Regulatory Authority (Rera) had cancelled MFR Properties’ licence in February following numerous complaints from landlords over bounced cheques.

“When I booked the unit in February,” said Tehseen, a 30-year-old Indian IT executive, “they (real estate agents) asked me to pay either in cash or with one cheque. I couldn’t have suspected that they were up to no good as the rents were still falling then. I was just happy to have found a bigger place for myself and my wife,” said Tehseen, who got married in January in India and moved into his unit in March after taking a loan to pay the rent.Most tenants apparently fell for the scam after they were wooed by the slightly below-market rental the real estate company had asked for the new units. One tenant paid only Dh31,000 for a two-bedroom last February when the average rate for a property of that size in the Al Nahda 2 area is about Dh41,500 as per the Real Estate Regulatory Authority’s (Rera) Rent Index.

It turned out that his happiness was short-lived.

Sandy Cuevas, a Filipino aircraft technician, paid Dh32,000 – plus Dh5,000 deposit and commission – for his two-bedroom unit in February. He said: “I have advanced my housing allowance from my company for one year and paid in cash to the agent.”

Established property agents said the below-market rent was a ruse used by MFR to con both tenants and the landlord – the tenants were asked to pay with one cheque, while the landlord was asked to accept four cheques.

The September 14 deadline was handed down by the Rent Committee, a body ruling on rental disputes under the Dubai Municipality, said tenants. While neither the ruling nor the final date couldn’t be independently verified, tenants are appealing to authorities to intervene.

“We understand that the landlord is also a victim in this fraud,” said Rashid Mohammad, 31, a father of one. “We received a notice from the Rent Committee on June 12, which told us to attend a hearing at 4.30pm two days later. In that hearing, we were told the owner and real estate agent had issues because the cheques given to the owner by the agent had bounced. Then we were told to vacate by September 14 as the contract between the landlord and agent expires on that day,” said the Indian telecommunications salesman who also gave Dh32,000 in February for his two-bedroom unit in one cheque.

Mohammad said he spoke to the owner’s representative after the meeting. “He told us to renew by September 14 and that there’s no other option. This is not fair.”

Maqsood Dalvi, 50, an Indian whose tenancy contract expires on December 31, said: “We are unable to live in peace now that there’s an eviction threat hanging over our heads. We hope the authorities would help us sort this thing out.”

Arvind, a 29-year-old IT executive, moved in from Ras Al Khaimah three months ago. “It’s really unfair for us to be evicted six months into a one-year contract. I had taken a bank loan to pay the rent for the entire year till February 2013,” he said.

WEB FORUM

The MFR Properties scam has thrown up long threads in online forums. One MFR victim wrote in a web forum on February 19: “I paid the total rent in one cheque 12 days back. The owner came to me two days back and asked me to do a new contract with him or leave the apartment. I went to police with all the legal documents and police told me, ‘You are safe. You will stay in the apartment for 12 months’.”

Another tenant said: “My eight-year-old daughter suddenly burst into tears when she heard about this issue.”

XPRESS saw a copy of the tenancy contract that bears the landlord’s name with “Managed by: MFR Properties LLC” next to it written in brackets. The landlord declined to comment and referred us to a spokesperson, who had no comment either.

Registration of tenancy contract obligatory in Dubai from July

Dubai Registration of rental contracts with the Dubai Land Department (DLD) is a prerequisite to accessing other government services starting July 1st, according to a top property regulator.

The Land Department and its regulatory body — the Real Estate Regulatory Agency (Rera) — has been trying to implement the system through a registration portal — Ejari.ae.

Marwan Bin Galaita, CEO of the Real Estate Regulatory Agency (Rera) said: “Registration of residential and commercial lease contracts through Ejari is mandatory and failure to comply may lead to delay in government transactions. A Dh160 fee is chargeable to register a lease agreement with Ejari. The fee is payable by the tenants.”

“The move will help the government to monitor the property market and offer better insights through its rental index while ensuring all tenants pay their housing fees regularly.”

The Ejari registration will be mandatory to obtain utility services. If the contract is not registered, transactions could be delayed at several government departments, principally the Dubai Economic Department and the Residence and Foreign Affairs Department.

Dubai tenants can register their contracts online or through 47 typing service offices .

A total of 199,663 leased properties in Dubai are registered in Ejari and expecting to the number to get bigger.

Special addresses: Websites get new names

UAE organisations grab 46 domains in the first wave of special addresses.

Dubai: You can now add .abudhabi and .dubai to your Internet lexicon. The internet regulator Internet Corporation for Assigned Names and Numbers (Icann) on Wednesday took the wrapping off new domain names that will expand the internet beyond the existing domains, such as .com, .org and .net.

Both emirates have submitted their applications along with etisalat (.etisalat). Abu Dhabi and etisalat will also have Arabic version of their names as UAE organisations picked up 46 domains.

“It’s going to make the internet more approachable,” Icann’s CEO Rod Beckstrom told Gulf News from London via remote access.

Icann received 1,930 proposals for 1,410 different internet suffixes.

Companies will be able to keep their existing .com names.

The price to apply for a new generic top-level domain (gTLD) was $185,000, with an annual fee of $25,000, although experts estimate each name costs around $1 million to set up.

Icann expects the first batch of new gTLDs to be operational in the beginning of next year.

Investment

The Dubai-headquartered Directi Group has invested around $30 million (Dh110 million) for the application of 41 domain strings, which includes several generic and mass market names.

“We have invested significant resources to developing intelligent, responsible, secure and thorough proposals for what could serve as the foundation for this new era on the Internet,” said Bhavin Turakhia, founder and CEO of Directi Group. Top extensions on Directi’s list of applications include: .web, .bank, .loans, .insurance, .law, .shop, .app, .website, .click, .online, .music, .hotel .doctor, .baby and .shop.

However, those domains could still be challenged.

“The public will have 60 days to comment on the proposals. Someone can claim a trademark violation or argue that a proposed suffix is offensive. Companies and organisations will have seven-month objection period,” Kurt Pritz, Senior Vice-President of Icann, said.

UAE to issue new SME law by year-end

Dubai: A new law on small and medium enterprises (SMEs) that is underway in the UAE, is expected to simplify and streamline bank loans and help regulate this important segment of the UAE’s private sector, a senior government official said.

The new law will be issued by the end of this year as part of an ongoing economic reform aimed at attracting investment and ensuring sustainable growth by strengthening the non-oil sector and reduce the country’s dependence from the volatile oil prices, Mohammad Saleh Shelwah, Assistant Undersecretary for Economic Polices Affairs, told Gulf News.

He remarked that the law will strengthen competitiveness of the UAE economy and boost the SME sector.

SME sector is the biggest employer in the UAE.

“SMEs is the backbone the economic development process and growth, and we should have proper legislations,” he added.

Abdul Baset Al Janahi, Chief Executive Officer of Dubai SME, highlighted Dubai’s participation in developing SMEs law which is in the final stage.

He said: “The UAE is already locked in a drive to diversify its economy by attracting investment and encouraging industrial projects, and SMEs has seen as a key factor in diversification given the country limited resources.”

Dubai SME, part of the Department of Economic Development, yesterday launched a SMEs index that said 86 per cent of the SME’s have not sought bank finance - a fact that reflects how it is difficult for this sector to get bank loan.

Al Janahi said: “This shows the big gap between the government directives and the banks’ policies. Bank financing is usually their only option, and is the predominant source of external financing for most SMEs. However, banks consider SMEs to be relatively high risk as most of their businesses are service activities, which on the one hand impedes their ability to obtain funding, and on the other leads to the charging of higher interest rates,” he said

He remarked that most of the commercial banks are keen on funding the working capital needs of businesses, but less on funding SME start-ups. Thus, there is a need for dedicated banks, working on commercial principles but devoted to financing of the of SMEs start-ups. Currently, not only the UAE but the entire GCC lack institutions which specialise in funding SMEs.”

The ‘SME Friendliness Index’ has been created by the DED to give banks access 230,000 SMEs in the UAE and realise the Dh6 billion SME financing revenue opportunity.

The index is a signalling tool that gives constructive feedback to banks about how 230,000 SMEs are actually working in the UAE, the DED said in a statement.

Of every 100 companies that approach banks only 50 get finance as only 14 per cent of the SMEs used bank finance for their growth, according to the study. The study enumerates the different challenges of the banks in serving the SME sector including quality of financial reporting, lack of credit history, inadequacy of collateral, informal management, short term planning horizon, and weak cash flow management.

Given the challenges and opportunities of the SME sector, the index outlined the strategies of the different banks - in terms of the sizes of customers they serve, the quality of financial reports they accept, and the informal/formal nature of the SME management. The findings also indicate that despite the structural challenges, innovation is widespread in the banking community.

India sets up Gulf unit to track NRI tax evaders

Dubai: India’s efforts to track down tax evaders could soon see officials monitoring the funding flows of nationals living in Gulf countries, a senior revenue service official said.

“Some of the leading Gulf cities such as Dubai, Abu Dhabi, Bahrain [Manama] and Doha are major financial centres that are increasingly attracting Indian money that is leaving Swiss banks,” said the Indian Revenue Service official on condition of anonymity.

“In many cases these funds reach Gulf cities in the form of seemingly-legitimate investments.”

Officials said the Indian government has drawn up a plan to track the suspicious financial dealings of non-resident Indians in close cooperation with respective foreign governments.

The government has already posted eight senior IRS officers in newly-created income tax overseas units in countries like the US, the UK and the UAE as part of efforts to trace illegal funds hidden away by Indians abroad.

These tax officials will function from the Indian missions in Washington, London, Berlin, Paris, The Hague, Abu Dhabi, Cyprus and Japan.

Last month Finance Minister Pranab Mukherjee tabled a white paper on black money in parliament which did not disclose names or estimate the amount of money NRIs have stashed away.

“The expansion of information exchange network at the international level will help in curbing cross-border flow of illicit wealth,” he said while presenting the white paper.

Sceptics say the government’s efforts may have only symbolic value. “It has been almost two years after the first list of India Swiss bank account holders was leaked to the media,” said Asha Kothari, a tax specialist.

“It’s a long enough time for most to cover their tracks and move money to safer destinations.”

Although there are no official figures on the illicit funds, estimates by various sources say the total amount could be in the range of $1.5 to $2 trillion (Dh5.5 to Dh7.4 trillion). A significant portion of this money is believed to be in Switzerland.

Despite the new tax treaty India signed with Switzerland, analysts say it is unlikely that the Swiss banks will give away any details of the coded accounts that existed prior to January 1, 2012 when the treaty came into effect.

“Swiss banks may be under attack, but they are unlikely to violate the code of silence and share details on old accounts that have ceased to exist,” said Ramanujam Krishnan, a tax consultant.

Analysts say India’s war on black money is likely to be a damp squib as many of the cross border fund movements are within the existing regulations.

A typical transaction to move money from Switzerland involves buying a shell company in a tax haven. Under the liberalised remittance schemes Indians can make investments up to $200,000 a year per person. This allows the Indian resident to hold shares of a paper company while having an account with a bank abroad.

Then the illicit money in coded accounts can be transferred to these companies in the form of trading income or earnings from consultancy services. The money can eventually flow back to India in the form of a legitimate foreign direct investment or portfolio investment.

With hundreds of thousands of NRI-owned businesses in the Gulf and Far East, tax evaders could use these businesses as conduits to escape the prying eyes of the taxman.