ADDED reveals more details about reduced economic activities licensing fees for Abu Dhabi local and municipal authorities

ADDED reveals more details about reduced economic activities licensing fees for Abu Dhabi local and municipal authorities

ABU DHABI, 2nd September, 2021 – The Abu Dhabi Department of Economic Development (ADDED) revealed that the Abu Dhabi government has decided to reduce the fees for economic activities in the emirate to AED 1,000. The decision included the reduction of the fees for establishing a commercial company and the documentation of incorporation contracts. The fees paid to service providers, and the waste producers’ tariff paid to the Abu Dhabi Waste Management Centre – Tadweer, the activity fees, and the fees paid to the Abu Dhabi Civil Defence Authority (ADCDA) for Certificate of Conformity as well as the membership fees of Abu Dhabi Chamber.

The Abu Dhabi Executive Council has abolished the exemption of new economic licences from fees. The decision sets fees for municipalities for various services related to leasing contracts. These include the registration of economic lease contracts, establishing a municipal fee, and the waste disposal. The fees are collected annually by the Abu Dhabi Department of Economic Development regardless of the contract value.

In detail, the decision has set AED 50 only for the municipal fee required for the authentication and registration of economic lease contracts, as well as service fees for the Department of Municipalities and Transport, provided the municipal fee shall be collected annually by the Abu Dhabi Department of Economic Development (ADDED) regardless of the value of the contract. In addition to AED 50 for Abu Dhabi Chamber’s membership fees, and the service providers fees shall be cancelled as well as waste producers’ tariff for Abu Dhabi Centre for Waste Management. In addition to the cancellation of activities fees and Certificate of Conformity (COC) for Abu Dhabi Civil Defence Authority.

Rashed Abdulkarim Al Blooshi, Undersecretary of ADDED, expressed the Abu Dhabi government’s keenness to enhance the roles of government and semi-government authorities and enhance the incentives offered by them to the private sector companies and entities. As the private sector is considered the main driver of the Abu Dhabi local economic system.

Al Blooshi, also commended the efforts of all the government authorities in supporting the Private-Public Partnership (PPP) in the emirate.

On his part, Abdullah Al Sahi, Undersecretary of the Department of Municipalities and Transport (DMT), stated: “This decision is a distinguished step that supports the efforts of the Abu Dhabi government towards enhancing the ease of doing business in the emirate and lays the foundations for a prosperous business environment that encourages growth and innovation and attracts more investors to start businesses in Abu Dhabi, which, in turn, contributes to increasing the emirate’s competitiveness on the regional and international levels.” His Excellency said that the Department of Municipalities and Transport (DMT) is very keen to unify efforts and continue cooperation and coordination with various government entities in the emirate to work on the right implementation of this decision.

Brigadier General Mohamed Ibrahim Al Ameri, Director General of the Abu Dhabi Civil Defence Authority (ADCDA), stated, “The decision to modify the fees for economic activities in the Emirate of Abu Dhabi reflects the government’s commitment to supporting the development of the economy in the emirate. The establishment of the private sector is considered as one of the most crucial factors for the development of the emirate’s economy. The Abu Dhabi Investment Development Authority (ADIDA) has announced its intention to boost the business environment and the investment climate in the region.”

Dr. Salem Khalfan Al Kaabi, Director General of the Abu Dhabi Waste Management Centre – Tadweer, said “The Abu Dhabi government’s continuous efforts to improve the economic climate and stimulate private establishments and investors in the Emirate have contributed to a more robust and balanced economic development in the region. The decision to reduce the fees for economic activities in Abu Dhabi is a step that aims at opening the door for new investors to enter the market in the emirate.”

Mohamed Helal Al Muhiri, General Director of Abu Dhabi Chamber of Commerce and Industry, said that “The reduction of government fees for commercial activities is considered a new initiative within the stimulating initiatives provided by the Abu Dhabi government to enable the private sector in the emirate”, indicating that the collaboration of Abu Dhabi Chamber with many local government entities is a joint and integrated work that aims to achieve the comprehensive and sustainable development. As well as to motivate members and investors to set up and practice businesses in view of the economic incentives that promote the ease of doing business, in addition to maintaining its competitiveness at the regional and international levels. He also emphasized that the application of fees reduction will in turn help increase trust, transparency and mitigate the administrative burdens of investors, particularly entrepreneurs of small and medium enterprises (SMEs). As this will contribute to the continuity, growth and prosperity of businesses.

The Abu Dhabi government’s new decision sets AED 790 for issuing an economic activity licence, including fees for all local authorities concerned with economic licensing, and AED 890 for licence renewal, only AED 10 for licensing procedures. In addition to AED 50 as a trade name issuance fee, AED 100 for adding an economic activity, and AED 500 as fees for adding an industrial product on the licence.