Tuesday 29 November 2022 - 5:39:58 am

ADDED exempts 1,200 economic activities from lease contract requirement


ABU DHABI, 5th July, 2022 (WAM) -- The Abu Dhabi Business Centre (ADBC), part of the Abu Dhabi Department of Economic Development (ADDED), has announced that it will grant 1,200 economic activities a one-year exemption from having a lease contract for work premises.

The move is part of the centre's commitment to enhancing business environments and ensuring ease of setting up and doing business, ADDED’s new initiative is part of Abu Dhabi’s efforts to incentivise entrepreneurship and businesses in the Emirate by, not only, simplifying procedures and reducing fees, but also giving investors more time to focus on the business and eventually select the best location to support their success.

The economic activities included in this initiative represent 29.5 percent of total economic activities licenced and regulated by ADDED, which reached 4,062 by the end of 2021.

This decision is in line with the ADDED's vision concerning regulating economic activities being practised in the Emirate of Abu Dhabi. This allows the exemption of some facilities from the lease agreement as a prerequisite to issuing an economic licence based on its activities. This exception is valid for one year from the date of licence issuance, and a lease agreement should be submitted on the renewal of the licence or before that.

ADDED has recently launched many initiatives to ensure ease of doing business, including slashing business set-up and renewal fees by over 94 percent and reducing over 71 percent in business set-up requirements, in coordination with 26 local and federal government entities. The move was welcomed by the business sector, reflected by an increase of new economic licences of 21.5 percent and renewals of 15.8 percent in 2021 which confirms the attractiveness of the business sector in Abu Dhabi.

The strategic initiatives launched by Abu Dhabi facilitated a faster recovery rate of its economy after the COVID-19 economic impacts. This is reflected in the Emirate’s performance reported in 2021. The GDP grew by 1.9 percent, and the non-oil GDP growth rate was 4.1 percent while sectors affected by COVID-19 showed a strong recovery with a growth rate of over 15 percent.

Mohammed Munif Al Mansouri, Executive Director of ADBC, said, "This new initiative is a testament to ADDED’s commitment to enhancing the ecosystem and its proactive approach will enable businesses to benefit from growth opportunities in Abu Dhabi. Offering investors the option to obtain economic licences without a lease agreement reflects our positive, pre-emptive response to the market’s current needs."

 

WAM/Esraa Ismail/Amjad Saleh