UAE to Cut Red Tape for Digital Companies as Part of Economic Diversification Plan

The United Arab Emirates (UAE) has announced plans to simplify the process of incorporating digital companies, as part of its wider economic diversification strategy away from oil revenues. The new measures include improved access to the financial and banking system, faster visa issuance, and attractive commercial and residential leases. The UAE aims to attract 300 digital companies to incorporate within a year, positioning the country as “the world’s best place to live, work, invest, and scale” according to Trade Minister Thani Al Zeyoudi. The country’s move follows similar initiatives by other governments to shift toward renewable energy sources and away from fossil fuels.

The UAE’s efforts are part of a larger strategy to double the economy to $816bn by 2030. As Saudi Arabia takes steps to become a leading financial and tourism center under Crown Prince Mohammed bin Salman, challenging Dubai’s dominance, Al Zeyoudi says the UAE is moving from a regional hub to a global one. Despite some complaints from executives about bureaucracy in setting up a business and hiring international staff, Dubai has established itself as a premier business hub and is already home to many international businesses.

The new policies aim to address these concerns and make it easier and quicker for digital companies to incorporate. The government’s support includes assistance with commercial licenses and work visas, as well as opening bank accounts, finding office space, and identifying the perfect place to live. The UAE is taking steps to position itself as a leader in the digital economy, and the latest announcement is expected to boost investor confidence and attract new business to the country.

In recent years, the UAE has been actively working to diversify its economy and reduce its reliance on oil exports. The country’s efforts have included investment in renewable energy, infrastructure development, and initiatives to promote tourism and trade. The UAE’s move toward a digital economy is seen as a key part of this broader strategy, with digital companies expected to play a major role in driving economic growth and creating jobs.

Overall, the UAE’s efforts to create a more business-friendly environment for digital companies are likely to be viewed positively by investors and entrepreneurs. The country’s geographical location, strong infrastructure, and favorable tax policies make it an attractive destination for businesses looking to expand their global footprint. With the right policies and incentives, the UAE could become a major player in the global digital economy, helping to further diversify the country’s economy and reduce its dependence on oil revenues.