UAE Business Support Initiatives – 2020 Round-Up
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UAE Business Support Initiatives – 2020 Round-Up
2020 was a year which the world saw never before an event such as the Pandemic. Since the advent of the Pandemic and the decision of lockdowns across the globe by all Governments, the business sector as a whole was greatly affected.
It was put to the test of time to revive and adapt to the new normal quickly. Most businesses are still trying to get back to normal with adopting to digitization and going lean in business operations.
Due to the nature of spread people across the world were guided by the World Health Organizations and other Government bodies to practice Social distancing and spend time at home most of the time.
List of Business Initiatives by UAE to Support Small and Medium Business
To revive and stabilize the economic growth and business ecosystem, UAE Central was swift enough to launch a Stimulus Package worth AED 256 Billion in total, with the UAE Government providing another AED 126 Billion to support the Small and medium business in the region.
Let’s dive into the economic, social, and business revival initiatives UAE has so far taken in the year 2020 to support the small and business sector and how is UAE gaining popularity as an investor-friendly location to establish business and settle down with the family.
1. Stimulus Package for Business
There is a wide range of incentive measures ranking from rent reliefs, fee-waivers, SME Credit Guarantee Schemes, and more to enable companies to sail through the downtime.
The Free Zones of UAE are individually allowing relief measures for ailing companies during the downtime.
Major Free Zones in Dubai under the Dubai Free Zone Council has initiated postponement of rent payments by a period of up to six months.
The participating Free Zones include Dubai Silicon Oasis Authority, Dubai Airport Free Zone Authority, Jebel Ali Free Zone, Dubai World Trade Centre, Dubai International Financial Centre (DIFC), Dubai Development Authority, Dubai South, DMCC, Medyan City Corporation,
The Stimulus Packages of the Central Bank is aimed at raising the liquidity in the market during the downturn.
2. Digitization of Processes
UAE Government has transformed most of the government services to the digital platform.
Most of the government services across various departments are unified under a single digital platform to provide an interconnected platform for the general public.
Taking into account of the Pandemic, the digital transformation, and migrating activities that require a physical presence online help the general public and businesses to stay protected.
The business set up in UAE is now easier with digitization and smart attestation services due to hassle-free online processes.
Now, most of the Free Zones require no physical presence of the shareholders to register a company. Also, there are experienced Business Consultants that are registered Agents for major Free Zones in UAE who are eligible to register a company online.
Aurion Business Consultants is one of such Registered Agents for all major UAE Free Zones. Aurion will proactively handle all your company formation requirements online and ensure you the most comfortable company setup in UAE.
3. Economic Substance Regulations
To comply with the Global Banking and Finance Standards and Taxation Policies, UAE has introduced the Economic Substance regulations and certain amendments to the policies for the smooth functioning of the economic activities and the reporting of the business activities.
Economic Substance Regulations are to be met by all companies operating in the UAE to avoid fines and secure their reputation in the UAE.
There were few amendments to the Economic Substance Regulations and the way a UAE based company must prove their physical operations and presence in the UAE through ESR report filing.
4. Change in Visa regulations
To support the employees, business owners, and residents of UAE during the pandemic, the UAE Government ensures visa extension for all expired UAE Residence holders till the end of 2020.
To strengthen the economy of UAE, the Government is promoting the Long Term Residence Visa with a validity of 5 years and 10 years. It comes with an investment bracket of AED 5 Million and AED 10 million accordingly.
To know more about Long term visa read: 10 Year Gold Card Visa in UAE
5. Broaden the scope of a 10-year long term visa
To promote business, trade and boost the economy of UAE, the UAE Government has broadened the scope of 10-year visa by adding more specialized professions like engineers in Computer, Space, Electronics, Ph.D. degree holders. doctors, scientists, etc.
The UAE Government through the long-term Gold Visa aims to attract foreign talent as well as build opportunities for UAE Expats to continue to contribute to the economy for a longer time.
6. Changes to the Civil Laws and Wills
UAE has made a series of changes to the Civil Laws and relating to the Wills of Expats. As per the new amendments in the Civil Law, the expatriates living in UAE can choose the option of which law to apply to their assets in the UAE.
The inheritance could be actioned as per the home country laws of the National. For real estate property in the UAE, the UAE laws will be applied.
For Divorce cases in UAE, the home country laws of the couple where the marriage took place will be actioned.
There are a few more changes to the laws including Good Samaritans Laws, Alcohol Consumptions, Cohabitation for unmarried couples, and more.
With the latest e-Governance System, digitization of operations, stimulus packages, changing residence visa rules, and more such amendments, UAE is becoming a favorite choice for ex-pats and foreign investors.
To know more about Company Formation in UAE, talk to our expert business consultants right away!
Contact: Aurion Business Consultants