Will the UAE’s new law change business?
The country has scrapped the AED150,000 minimum requirement for a company to start a business here. According to analysts, more has to be done.
August 11, 2009 12:16 by Aarti Nagraj
“Though on the surface it looks so, I think the government has a longer-term perspective for enhancing the ‘doing business indicators’ in the UAE at par with international standards,” he says.
He does admit that internationally, there is currently a negative perception about setting up new ventures in Dubai. But this is “solely based on fabricated international media reports,” he says. The death of Dubai has been announced endlessly by media reports across the world, citing fleeing residents and huge numbers of cars abandoned in the airport. While the government has tried to deny or play down these reports, they have managed to create a stir worldwide.
While the latest decree is a positive step, Pradhan says that the government will need to do more to promote businesses in the country.
“The regulatory aspects need to be mainstreamed into policy making at the earliest. There are glaring issues such as the high cost of doing business, a lack of legal procedures for investment protection, and [a lack of] financial arbitration,” he says.
But thanks to advantages like its handy location, the UAE will finally prove to be an attractive hub for foreign ventures, he adds.
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