The UAE has implemented several reforms to improve the ease of doing business, attracting FDI, spurring job creation, and diversifying its economic interests. The nation has allowed 100% foreign ownership of companies, reduced visa restrictions, provided various incentives for SMEs, and introduced laws to improve transparency for investors.
Recently, the Ministry of Industry and Advanced Technology (MoIAT) decreased the fees for 14 services and waived the fee for one service as of January 1 as part of efforts to sustain entrepreneurship in the industrial sector by reducing the cost of doing business in the UAE.
“The reduction and cancellation of some fees are in line with the ministry’s keenness to develop priority industrial sectors in the country and enhance its investment appeal,” Omar Al Suwaidi, undersecretary of MoIAT, said in a statement. “The reduction of fees will improve the UAE’s competitiveness through growth in the economy and business development, which will reflect on the index of ease of doing business.”
The MoIAT aims to waive fees, in line with UAE’s efforts to expand the industrial base under its Operation 300bn program, launched in 2021. The 10-year strategy seeks to increase the industrial sector’s contribution to the country’s gross domestic product to $81.7 billion by 2031.
Reportedly, the service fee reduction will also encourage sustainable industrial activities by promoting advanced technology that lowers emissions. MoIAT reduced the fee of issuing a product conformity certificate from a provider of a specific conformity assessment from $272 to $182. The cost of issuing a conformity certificate for optional (unrestricted) products dropped from $1000 to $468.
Costs for licensing to use the Emirates Quality Mark fell from $7,078 to $544, licensing to use the national Halal mark from $4900 to $544, and scope expansion of the Emirates Quality Mark and the national Halal mark from $680 to $68.
The scheme also includes reducing the notification fees of conformity assessment bodies from $8,984 to $6,670 and registering conformity assessment bodies from $2,041 to $1,361. Research done by MoIAT showed an increase in demand by factories to obtain certificates, with an expected annual growth rate of up to 25% in the number of applications for next year, compared to a 12% increase in applications in 2020, it said.
MoIAT also foresees increased requests for licensing to use the Emirates Quality Mark and for conformity certificates for health and safety requirements, it said.
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