Start me up
‘Hassle free’ trade licenses and ‘pension for expatriates’ the Department of Economic Development has big plans for the end of the year.
March 25, 2012 4:41 by kippreport
So the Department of Economic Development (hereon referred to as DED) has been heartily patting itself on the back for the launch of the 120 days hassle free license. The hassle free license will allow those start-ups revving to go, to begin operations instead of waiting around twiddling their thumbs while their official trade license is being processed.
If you ask, why doesn’t DED just streamline and speed up the processes in place for trade license issuance—well you are not alone. After all, how does having to apply for an intermediary trade license before having to apply for an official trade license-sound ‘hassle free’? Sounds like paper work on top of paper work if you ask Kipp-and if there is one thing Dubai doesn’t need, well it is more paper work.
DED claims this new ‘hassle free 120 days’ license will be implemented by the end of the year-apparently the license will be issued immediately depending on the nature of the business as per DED regulations: business activities in Dubai have been categorised as No-Risk, Low Risk and High-Risk. “The categorisation depends on four main risk factors, evaluated on the basis of whether the business activity is harmful to human beings, harmful to animal life, harmful to plants, or harmful to the environment. When a businessman approaches DED for a license, a 120 days license is issued immediately, on completion of the necessary procedures, if the specific business activity falls under the No-Risk or Low-Risk categories” said Mohammed Shael, Chief Executive Officer of the Business Registration and Licensing (BRL) Division at DED.
OK, we are going to stop being so terribly cynical-Kipp will admit advertising a ‘hassle free’ license is a potentially lucrative marketing which may indeed attract more investors here. Granted investors need a little more than ‘hassle free’ visas to re-gain their already shaken confidence in the UAE market, but that is where another DED initiative comes into play.
Apparently the DED is close to finalizing plans for a pension fund for expatriates. The fund, which will be effective for expatriate employees in the public and private sector, is said to be launched by the end of this year: “We have finished the feasibility study for the project and DED are now consulting with local and federal parties…we are also coordinating with some parties in other emirates and are planning to hold workshops on the project,” said Ali Ibrahim, Deputy Director General For Planning And Development at DED.
A lot of tricky tricky questions to take into consideration when setting up or promising to set up a pension scheme, but we will hold our tongue till ‘the end of the year.’