The Role of Dubai’s Department of Economic Development in Shaping a Global Economic Hub
Having moved underneath the Dubai Department of Economy and Tourism (DET) recently, the Department of Economic Development (DED) still preserves the core functions of its predecessor. This umbrella now has an immense affiliated network like the Dubai Exports Development Corporation that operates under DED in transforming DED into a diversified economy for Dubai. DED is responsible for a lot, such as formulating competitiveness in the open economy. As such, Dubai rests in the middle of the modern world, being a global city and a business hub.
Historical Development
Steering the economic agenda of Dubai, the DED was established in March 1992. As years have gone by, the shift towards the retail sector and entrepreneurship has greatly aided Dubai due to the freelance model in recent years. This trend is largely due to the expansion of DED’s scope, facilitating foreign investment.
Core Functions and Services
Department of Economic Development (DED) offers several services to assist clients in various aspects to ease the process of starting a business in Dubai:
Business incorporation and licensing: The powerful DED provides options such as name reservation and trade licence renewal. It ensures compliance for business operations within Dubai when starting or halting business activities.
Legal documents: Business owners can obtain contracts or, after securing DED approval, print contracts that are accessible in Dubai.
Information Services: This department contains resources that assist businesses with transaction status requests, business activity searches, licence information, and trade name searches.
Business Jurisdictions in Dubai
Dubai has three main areas of business jurisdictions, each possessing its unique characteristics:
Mainland: Businesses in the Mainland are licensed by the Department of Economic Development (DED). It allows them to operate freely throughout Dubai and the UAE without any restrictions. They can engage in diverse commercial activities and are permitted to trade directly with the local market.
Free Zones: These are specific areas that offer benefits such as one hundred per cent foreign ownership, no taxation, and customs advantages. However, businesses in free zones are generally not allowed to operate outside the Free Zone territory. It limits them to international operations only with restricted direct trade within the UAE market.
Offshore: Offshore companies are primarily established for conducting business internationally. They enjoy a tax advantage and confidentiality but are prohibited from conducting business within the UAE.
Strategic Initiatives and Innovations
The Department of Economic Development (DED) has implemented many initiatives to bolster Dubai’s economic standing:
Dubai Plus: Launched in 2015, Dubai Plus is a smart card scheme intended for government and semi-government employees that provides payment options, transport, loyalty discounts, and rewards. The initiative seeks to enhance the happiness index of the workforce in Dubai.
Dubai Blink: Dubai Blink is an e-commerce platform utilising AI and blockchain technology as part of the 10X Dubai initiative. It aims to transform Dubai into a global leader in emerging technologies in digital trade.
FZ Exchange: This initiative allows Free Zone companies to operate as public shareholding companies. It enables them to list in the financial markets and improve capital growth.
Recognition and Awards
DED has received several awards in recognition of their efforts towards excellence:
Distinguished Government Entity Award: In 2012, the DED received an award for its exemplary performance in the Government of Dubai’s excellence programme.
Best Technology Award: This award was conferred upon DAFZA, a company under the auspices of DED. For the implementation of the Smart E-Gate Pass programme during the 30th session of Ideas UK.
LEED Certifications: DAFZA received Platinum and Gold awards from the Leadership in Environmental and Energy Design (LEED) for sustainable operations and maintenance of their buildings.
Influences on Dubai’s Economy
The initiatives put in place by the Department of Economic Development (DED). It includes fostering innovation sectors and creating new businesses. DED also contributes to attracting international investment to the emirate and enhancing its economic position globally. It diversifies and broadens the outlook of Dubai’s economy.
Dubai’s economy is expected to improve with the following changes:
Increment Policies for Sustainable Development: Dubai aims to advocate for green policies and encourage a sustainable business culture.
Increase in E-services: Dubai’s Smart City vision investment will enhance e-services and service delivery.
Support of Small and Medium Businesses: These developing enterprises will support and enhance innovation in the economy, fostering new business in the region.
FAQs
Which of the following is the most significant role of the DED for Dubai and its cities?
The DED sets and drives the agenda for Dubai, this includes devising economic policies. It encourages the strategic sectors of the economy, and offering services to local as well as international investors and enterprises.
What is the process to obtain a trade licence in Dubai?
For trade licences, Dubai requires its businesses to go through Dubai’s Department of Economic Development (DED). DED’s official channels have their process that includes choosing a business activity. It reserves a trade name, getting initials, and obtaining specific licenses.
How do you benefit from setting up a business in the Dubai free zone?
In the Dubai Freezone, there is full foreign ownership of up to 100%. There is also no taxation and full retention of profit where income is generated. Imports and exports are also notably easier. On the downside, free zone businesses face limitations when trading openly with other businesses based in the UAE.
Can companies registered in the Freezone trade in the market of mainland Dubai?
In general, Free Zone companies cannot operate freely in typical mainland markets. If they want to operate in the mainland, they must first hire a local distributor or open a branch, registering to comply with DED laws.
What is the focus of DED’s new initiatives aimed at innovation in Dubai?
Dubai’s Department of Economic Development (DED) has launched numerous programmes to support entrepreneurs or improve business such as Dubai Plus, an all-in-one smart card for all government and association employees, and Dubai Blink. It is a self-funded smart platform that uses AI and blockchain to allow Dubai to showcase its innovative leadership for internationally focused businesses.
Conclusion
As the Chief Reason You’re Looking For, The Department of Economic Development (DED) is responsible for Dubai’s shift to a business hub. And to top it off, because of the DED policies, Dubai is and continues to be a world hotspot for investors and entrepreneurs. While the DED puts so much effort into one thing, they seem to forget the amount of effort. It needs to go into sustainable economic growth, diversification, and the ever-changing global landscape. But hey, they always find a way out.
