Paradigm Shift in UAE Economic Policies

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Paradigm Shift in UAE Economic Policies

Since the beginning of this year, UAE Government has launched a series of new policies to enhance ease of doing business and attract foreign investors to grow their business in this region. They have also considered the challenges faced by many Small & Medium Enterprises (SME). Since the implementation of VAT, lack of liquidity and the day-to-day operation costs has increased, and SME’s are unable to manage up to it.

Considering the above-mentioned challenges, UAE Federal Government has announced that the requirement of AED 3,000 of guarantee deposit for each employee will be replaced by an insurance cover for a minimal premium of AED 60 per year for each employee which covers the workers’ entitlements in terms of, vacation allowance, end of service benefits, unpaid wages, overtime allowance, worker’s return ticket and cases of work injury, in which the insurance coverage sums up to AED 20,000 per worker.

This move by the Federal Government brings back approximately AED 14 Billion in liquid cash, which has a direct positive impact on businesses across the country and encouraging SME to grow their business.

“The UAE is among the 10 most competitive countries in the world and our goal is to remain a top destination for ease of doing business, through an agile economy based on flexibility and openness. A strong economy drives us as a nation to be among the first and best.”

 – His Highness Shaikh Mohammad Bin Rashid Al Maktoum
   Vice-President and Prime Minister of the UAE and Ruler of Dubai

UAE Government also announced that they will issue a part-time work permit for full-time employees, ten-year visa for investors and professionals specialising in medical, scientific, research, technical fields. These amendments boost the confidence of employees, employers, investors & professionals in the government as they are helping them to open a door to new ventures.

It is crystal clear that the UAE Government is keen on developing business opportunities for all the sectors of the economy across the country, be it Healthcare, Technology or Finance.

Source:

UAE launches 10-year residency visas for investors, specialists

UAE Cabinet introduces new visa facilitation and new foreign workers insurance scheme

New law to provide flexibility in job market

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