Abu Dhabi slashes licensing costs
Mita Srinivasan
10x Industry

Abu Dhabi slashes licensing costs

The new initiative is part of ongoing efforts to enable the private sector and increase Abu Dhabi’s competitiveness regionally and internationally

Beginning 27 July, Abu Dhabi Department of Economic Development (ADDED), in collaboration with multiple government entities including Abu Dhabi Chamber of Commerce and Industry, has reduced business setup fees in Abu Dhabi emirate to AED1,000, a saving of more than 90 per cent. License renewal fees have also been reduced to AED1,000.

The new fees include six activities within the business license, and will cover all fees from Abu Dhabi Government entities such as ADDED, the Department of Municipalities and Transport, membership fees for Abu Dhabi Chamber, Certificate of Conformity issuance fee, and fees required by Abu Dhabi regulating entities dependent on the type of business. Several fees have been removed entirely while others have been considerably reduced. However, federal fees will continue to apply.

His Excellency Mohamed Ali Al Shorafa, Chairman of ADDED, said, “We hope this significant change in fee structure helps to further ease the setup process for new and existing investors. Our goal for Abu Dhabi, as part of the new economic strategy, is to create a thriving business environment that encourages growth and innovation. Ease of starting and managing a business is a key lever and we strongly believe the restructuring of fees will help us achieve this goal.”

The move will significantly enhance ease of doing business in the emirate and increase Abu Dhabi’s competitiveness regionally and internationally. The introduction of a fixed fee will increase transparency and reduce administration for investors. It also supports Abu Dhabi Government’s efforts to create an even more thriving business environment for the private sector, especially for micro, small and medium-sized enterprises.