Dubai to issue investors instant trade licences

The Dubai Department of Economic Development (DED) is planning to issue instant trade licences to investors under a new ‘120 days hassle free licence’ initiative that will be launched this year.

The move, which will allow investors to have their licences issued immediately, will drastically simplify the investment and business registration process, depending on the risk factors of the intended business activity.

The UAE has improved its rank in Ease of Doing Business to 33 in 2012, up from 35 in 2011, under the World Bank’s annual Doing Business report. DED said the scheme is aimed “to give businesses in Dubai a head start and promote the emirate’s competitiveness”.

“It is critical today that we ensure that the key sectors of our economy — trade, logistics, finance, knowledge sector, tourism, retail, and manufacturing and industry — are made even stronger and more competitive in this globalised age,” Shaikh Hamdan Bin Mohammad Bin Rashid Al Maktoum, Crown Prince of Dubai, said.

DED, the government’s trade licensing and regulatory body, renews and issues roughly 120,000 trade licences annually.

The 120-day licence allows businessmen to start businesses immediately and complete the rest of the licensing requirements, such as approvals from other government authorities concerned, within the subsequent 120 days.

Government authorities are entitled to ensure full compliance by the licence holder to the licence criteria on day 121.

The initiative, being implemented under the directives of His Highness Shaikh Mohammad Bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, will simplify procedures and facilitate business.

“The 120-day licence is part of DED’s efforts to enable businesses to make full use of the advantages of Dubai and improve the emirate’s ranking in the Doing Business Report of the World Bank,” said Mohammad Shael, Chief Executive Officer of the Business Registration and Licensing (BRL) Division at DED.

Business activities have been categorised as no-risk, low-risk and high-risk for the sake of evaluating the risk component.

More than 90 per cent of the businesses in the emirate are no-risk or low-risk and therefore a vast majority of businesses stand to benefit from the 120-day licence.

For high-risk business activities constituting the remaining 10 per cent, such as restaurants and clinics, all standards set by the government authorities concerned must be fully met before DED issues the licence.

Dr Khalid Maniar, founder and managing partner of Horwath MAK, told Gulf News, “The move will definitely attract investment and improve the competitiveness of Dubai, and enhance its global ranking in doing business.”

Shael said: “The categorisation depends on four main risk factors, evaluated on the basis of whether the business activity is harmful to human beings, harmful to animal life, harmful to plants, or harmful to the environment.

“When a businessman approaches DED for a licence, a 120-day licence is issued immediately, on completion of the necessary procedures, if the specific business activity falls under the no-risk or low-risk categories.”

Referring to the 120-day hassle-free licence as a new philosophy of business registration and licensing, Shael said the initiative along with significant reforms like Law No 13 of 2011 will dramatically enhance the ease of doing business.

“These facilities have stringent standards often embedded in their design and they go through years of preparations and inspections. Hence there is no risk in issuing them a licence.

“It will in fact allow them to complete procedures like testing and hiring before starting actual operations,” Shael said.

Law No 13 issued by Shaikh Mohammad in 2011 acknowledges the contributions of free zone companies to Dubai’s economy and allows such firms to open branches in Dubai while maintaining their presence in the free zone.

Sponsor husband in UAE

I want to sponsor my husband, i am accountant and my salary is AED 6,500. Can I sponsor my husband?If yes, do i need to pay a bank guarantee?
Thanks,

Sponsoring your husband ,the Department of Naturalisation and Residency requires the following:

The wife shall be an engineer, doctor or teacher.

The salary shall be either Dh4,000 or Dh3,000 and accommodation.

If the wife job is other than the above listed professions, she shall make a petition to the Department of Naturalisation and Residency to exempt her from this requirement. The said department will decide on this request and pass its resolution of acceptance or rejection. No need of Bank guarantee

Pension plan for expatriates in Dubai by year end-Department of Economic Development Dubai

Dubai has completed a feasibility study for an ambitious pension fund for expatriates and is in touch with relevant departments before launching it by the year end, an official was reported on Sunday as saying.

The Department of Economic Development in Dubai (DED) is working on the project which will cover both public and private sector foreign employees, making Dubai the first city in the region to create a pension fund for expatriates, who do not pay income taxes in Dubai and other emirates.

“We have finished the feasibility study for the project and DED are now consulting with local and federal parties…we are also coordinating with some parties in other emirates and are planning to hold workshops on the project,” said Ali Ibrahim, deputy director general for planning and development at DED.

“You can say the project is nearly ready…once we complete negotiations with other departments, we will seek government approval so the project can be launched by the end of the year,” he told Albayan newspaper.

He said the project would be implemented in stages, adding that it could first cover employees in large companies and public establishments.

He said the first phase would also include companies which already provide pension to its expatriate employees.

Asked whether such fund could involve all UAE, he said:”I think it is better to be implemented on the federal level….after Dubai took the lead in this project, I believe there is now a trend to set up a federal pension fund…this one requires the support of relevant departments, including the Ministry of Labour.”

In a recent statement, DED said the pension fund project is part of several ideas being considered by the Department to spur investment and make Dubai a more attractive place to do business and live.

In a report early this year, Emirat Alyoum Arabic language daily quoted officials and experts as saying the pension fund would give a strong push to the market as it will expand liquidity, boost investor confidence and improve living standards.

“There is no doubt the proposed pension system will ensure financial and social stability and create sufficient guarantees for expatriate workers in the emirate…this will in turn increase confidence in the domestic economy,” said Aref Al Muhairi, executive director of the Dubai Statistics Centre.

“I believe it will also boost domestic liquidity and this will give a push to business in the emirate…as for the sum that will be taken off the salary for the pension fund, I think it will be in line with international levels.”

Muhairi said he did not know whether the fund would be compulsory but added there would be several options for the Dubai government.

“However, I believe that making the fund mandatory will bring many benefits to expatriate workers, reduce their financial disputes and tackle end of service problems…this will contribute to easing pressure on courts….I am confident that this project will be highly successful as is the case in pension funds in many European states.

UAE Student Visa Requirements

The UAE educational system comprises of a variety of academic institutions - Schools, Colleges and Universities. Furthermore, there are several Training Institutes that offer professional qualification and training programs in various fields. Each institution has its own objective, structure, and admission requirements.

There are a few governmental universities and colleges in UAE where admission is restricted to nationals only. However, there are several private institutions where enrolment is open to any student who meets the admission requirements.

A student may enrol in any program of his/her choice. Programs may vary from academic, technical, and professional degree programs in various disciplines, preparing students for careers in research and professional practice in every field.

Enrolling in primary, secondary or high schools a residence visa is required. However, student visas are provided by all colleges and universities and also a few training institutes. Prior to issuance of visa all formalities need to be completed as per the university chosen

Student Visas

To enrol in primary, secondary or high schools a residence visa is required and educational institution may be permitted to make their UAE visa application based on the sponsorship of their parents. This option is available to full-time students.

Students under parent's sponsorship wanting to enrol into tertiary level university, college or institute have the following regulations:

    Sons, below the age of 18 in full-time education can be sponsored by their parents.

    Unmarried daughters of any age can be sponsored by their father (or their mother if she is employed in a high-level profession).

Students attending a tertiary level university, college or institute: Educator-sponsored Dubai study visa

Full-time students can be sponsored by their educational institution if the institution is eligible. This allows them to obtain a UAE study visa for the duration of their course

    Full-time students can be sponsored by the university, college or institute please check with the university, college or institute because not all offer this service.

    Student Residence Visas are normally only valid for 1 year at a time, renewed each year during the study program.

    Documents needed:

•         Passport with at least 6 months validity, the passport must have two blank visa pages (one to endorse the visa and one for entry stamps)
•         Passport copies (about 4)
•         Photographs (about 12)
•         Passport copies (about 2 copies)
•         Upon arrival, passport copies with entry visa to the UAE (about 3 copies)
•         Evidence of acceptance to a UAE tertiary institute (offer letter)
•         Possibly bank statements showing evidence of funds in the UAE
•         Possibly a tenancy agreement (or letter from university if staying in university accommodation)
•         Copy of tuition fee receipt for the current study year of the program
•         Copy of visa fees receipt for the current study year of the program
•         Post-graduate students will need to have their undergraduate degree attested

    Students from some countries will undergo a security check to make sure they are not considered a threat to UAE security.

    A medical test at an authorised UAE medical center (allow AED 350-500) will normally be required. The medical check is a blood test and chest X-ray for HIV (AIDS), Hepatitis B, Hepatitis C, Tuberculosis (TB), Leprosy, and Syphilis. If results come back positive for any of those conditions, the person is deported, except for syphilis which is treated, but this may change, check with UAE immigration department or UAE Ministry of Health (and keep in mind it's possible to get conflicting reports from them).

Student Residence Visa Fees

    Student Visa Fees vary between universities, colleges and institutions. Varies between 1,000 to 3,000 AED for a one-year student residence visa.

    Some universities, colleges and institutions may require a refundable visa deposit, may vary between 2,000 to 3,000 AED.

    Renewal charges vary between 1,000 to 3,000 AED yearly.

    There might also be differences in fees between different emirates.

    There are also differences depending on if the university is located in a UAE education free zone such as Dubai Academic City or Knowledge Village, or not.

Please check with university, college or institute applying to for up-to-date information.

Visa Validity

     If a student stays out of the UAE for longer than six months, their student residence visa becomes invalid and they will be denied entry to the UAE until it is cancelled. Usually the sponsor will report the visa holder to the immigration authorities.

•     Visas normally take 2-5 weeks to process once all the correct documentation has been supplied.
•     Express visas take 1-3 weeks to process.
•     Cancellation of visa normally takes 1-3 weeks, express cancellation takes 1-2 weeks.

Temporary passport not sufficient proof of UAE citizenship

A temporary Emarati passport is not enough for a foreigner to acquire UAE nationality, according to the Dubai Court of Cassation.

The court also confirmed that a person acquires UAE citizenship only after a decree by the Minister of the Interior and approval of the Council of Ministers.

The court also said “UAE courts are not competent to hear cases filed against a foreigner who has no home or permanent place of residence in the country.”

These legal principles were issued when the Court of Cassation considered a case filed by a bank operating in UAE against a Pakistani.

The bank had asked the court to compel the defendant to pay  6.2 million Hong Kong dollars  (Dh2.7 million). The defendant was guarantor of a loan given by the bank to a company.

Both the company and the defendant (the Pakistani guarantor) declined to meet their financial obligations. The bank then filed a lawsuit demanding this amount.

The Court of First Instance ruled that it has no jurisdiction over the lawsuit which forced the bank to appeal the judgment.

The Court of Appeal upheld this verdict following which the bank approached the Court of Cassation.

The Court of Cassation supported the verdicts of both the Court of First Instance and the Court of Appeal and established these legal principles.

The bank based its appeal on the fact that the respondent holds a temporary UAE passport which gave him the right to engage in commerce in the UAE.  He had announced in a newspaper that he is selling a shop licensed in his name.

The Dubai Court of Cassation rejected this argument and upheld the ruling of the Court of First Instance that UAE courts are not competent to hear such cases.

The Court of Cassation based its judgment on Article 20 of the Code of Civil Procedure, which allows UAE courts to consider only cases filed against citizens and foreigners who have a home and place of residence in the country.

The Court of Cassation also based its judgment on Federal Law No. 10 of 1975 which empowers the Minister of the Interior to grant temporary passports to some people.

But the Court of Appeal also noted that the temporary passport is not sufficient proof of UAE citizenship.

Citizenship of the UAE can be granted only on the basis of Article 27 of the act. A decree by the Minister of the Interior and approval of the Council of Ministers are needed, the court ruled.

The court said the Ministry of the Interior had said the passport of the defendant was a temporary one which had expired long ago. Also, the defendant had left the UAE and had not returned. So it was clear that he was a Pakistani national and had no permanent place of residence in the UAE, the court noted.