More businesses continue to set up shop in Dubai despite the economic headwinds and pressures from low oil prices.
Thousands of new companies have just opened business in the emirate this year, further testament to the fact that Dubai remains an attractive destination for global investors and resilient to the current challenges, according to the latest data.
In its report on Tuesday, the Dubai Chamber of Commerce and Industry said some 8,000 new companies joined this year, expanding its membership base to 193,000, up 4.3 per cent. A spokesperson toldGulf News that the majority of newly opened companies are small and medium enterprises.
Analysts had earlier said that business conditions have been tight, with a number of organisations either freezing the hiring process or announcing some job cuts. The Morgan McKinley UAE Employment Monitor reported in April that the number of jobs on offer in the UAE dropped by 9 per cent.
However, Hamad Buamim, president and CEO of Dubai Chamber, said the fact that thousands of new companies are still opening up is proof that the global challenges have not dented the local economy, thanks to the emirate’s strategy to diversify its revenue sources.
“Dubai has a diversified economic structure supported by its strong pillars of trade, tourism, logistics and financial services. Thanks to the excellent performance of these widely diversified sectors, the emirate withstands the negative effects of low oil prices and the overall economic slowdown,” Buamim told Gulf News.
Buamim said the chamber attracts more than 15,000 new companies every year, adding that the newly enlisted members is indicative of Dubai’s steady economic performance.
“The emirate’s capability in reducing the effects of the global economic slowdown comes from its competence based on the economic diversity and the UAE’s strategy to move away from oil resources,” he said.
Businesses registered under the chamber achieved Dh138 billion in total exports and re-exports during the first half of the year. Saudi Arabia emerged as the number one trade destination, with members’ exports and re-exports in the region at Dh44 billion.
The Dubai Chamber also reported that the number of certificates of origin (COOs) it issued in the first half of the year went up by 2 per cent to 478,000, from 469,000 a year earlier.
The chamber is set to launch its new strategy for 2016 to 2021, which will be in line with the Dubai Plan 2021, to further enhance the emirate’s “lucrative business environment” as well as the competitiveness of its companies in markets overseas.