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Big Relief for Dubai Business Owners with Expired Trade Licenses


So these are the figures in % related to small and medium enterprises (SMEs) in Dubai, United Arab Emirates, according to Dubai Statistics Centre, as published in Khaleej Times on 30 May 2018 --
  • 95%  - SMEs - total enterprise population in Dubai, UAE 
  • 42% - workforce - SMEs
  • 40% - contribution of SMEs to GDP
  • 72% - micro firms abased on total business count 
It means that SMEs sector is a substantial part of the business cake in the gold capital of the UAE. With these figures, the government stepped up again to bring life to those who took courage and risks to establish their own businesses, and for some reasons, failed and could not renew their trade licenses. Not renewing the trade licenses has domino effects -- like no visa releases for the investor and employees which result to overstaying, wasted time so it a zero productivity while the business ship is down, burden to entities from whom / which they borrowed money to operate the business as they cannot pay, and more.

I am surprised by this 95% figure because normally it is 85% SMEs based on total enterprise population. It shows that there are many enterprising people who are job opportunity generators and bright future co-makers. They are magnetized by Dubai despite the challenge in climate, not that big number of trees and not frequented by rains, because they believe in the current sheikhdom leadership.

'Resurrecting' businesses is a very, very great move because it helps those who collapsed in entrepreneurial journey rise again and generate revenues for those they can employ. The cycle goes on. The more revenues, the more consumption of products and services offered by local businessmen, thus, propelling economic growth. With VAT recently introduced, it will help the government help the constituents better.

Dubai business owners with expired trade licenses will not pay late renewal fines if they can renew such this 2018. What a big relief so they can use the money supposedly for fines for operational expenses! The good news is they will have 10-year visa and 100% business ownership, with implementing guidelines to be announced last quarter of the year. 

Truly the leaders in the UAE, and for this matter, in Dubai, led by its ruler, His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the country, are excellent in coming up with coherent strategies.  A strategy is defined as 'a plan of action designed to achieve a long-term or overall aim'.  That overall aim is competitiveness of Dubai and happiness of its people.

I do not know if there comes a time when a budding investor can also work in another company with a different sponsor as here an investor cannot do so unless he is a partner and / or consultant. Many will be delighted by this, as it will help new startups owners with limited financial resources to be more self-reliant while being innovative.

I think those on employment and student visa can start their business legally while on those visas provided that they get a no-objection certificate from their sponsors and their application for a freelance permit is approved. (Kindly correct me if I am wrong in the comment section below.) 

As the authorities provide easier ways in all fronts for investors to do business here, I hope there will be more affordable spaces to rent (both commercial and residential), maybe allow start-ups particularly in digital businesses, to operate virtually so they can utilize their homes as office.

Another suggestion is for them to be permitted to add as many related activities as they know they can operate, in one single trade license. For freelancing, it will be a good idea if they can cover not only one or three but more or perhaps there can be an umbrella freelancing visa.

Many businessmen who resorted to borrowing during bad times are surely praying without ceasing for banks to relax their collection system in terms of fines, interests, penalties and payment restructuring. With 10-year visa, I think there will positive changes so instead of totally writing the debts off, they can recover and there will be zero % of suicide due to financial problems and decreased % of depression and other mental illnesses rate.

Since they will be resurrecting their businesses, it will help if banks will not require a big amount to open and maintain an account. It takes times to pick up sales from the bottom again. For visa renewal, bank statements are required for investors so for this grace period I think there will be leniency for those whose businesses collapsed and would be 'resurrected'.

We heard about the stories of some amnesty seekers who could not renew their visas for non-payment of debts and they get stuck. Hopefully as the government makes things easier for people to solve their problems and be a part of a happy community, there will be a reverse way -- that they will allowed to work or do business so they can pay their debts. Millions of fines are waived already in terms of overstaying this 2018 amnesty period, August to October. We we pray that other local institutions follow.

It is 2018 which marks 100 years since the birth of the founding father of the UAE, Sheikh Zayed bin Sultan Al Nahyan.  2018 is the year of tolerance and yes, coexistence and peace.

All generosity of the government bounces back to the country. Every single act of giving, small or big, creates positive ripples. With this generosity, I am sure businessmen who can put life back to their businesses and will be guided properly will do better this time after learning all the lessons from the school of hard knocks.  Added to this, the World Expo 2020 is fast approaching. With their gained resilience, they are on the way up.

Since Dubai is aggressively promoting tourism, if there is a unified services platform for all businessmen / investors to invite tourists and help process booking of their plane fares and hotels, they can help the host country, particularly the said emirate.

May God give us wisdom to passionately mine golden opportunities here.

We pray for the UAE government. We pray for Dubai leaders. May you live long.

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Photo credits:  Pixabay

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