Ease of doing business has huge implications for both foreign direct investments and local businesses as this is impacted by the processes, rules, and regulations set up by governments that can help promote a business-friendly environment or hold back local businesses from their entrepreneurial ambitions. The new building permit scheme in Dubai announced by the government aims to ensure speeding up the process of acquiring building permits from concerned government entities to assist investors in the real estate sector. It goes without saying that when systems, rules and regulations are business-friendly, setting up businesses is made easier for not just big companies but also smaller ones that have less capital and resources at their disposal.
While big businesses often find it easier to set up shop and deal with the bureaucracy of setting up a business, smaller companies and start-ups rely on systems that are easily accessible and reliable to set up their businesses. This includes dealing with things like construction permits, getting electricity, registering property, getting credit, trading across borders, enforcing contracts, resolving insolvency, and protecting investors.
Dubai’s Committee for Building Permit Procedures Development was formed earlier this year in order to leverage the level of customer satisfaction by providing high quality services in building permit requests, and ensure speedy processing of building permit procedures, and enhance Dubai’s competitiveness in the related international reports. The government strategy aims to minimise the time and efforts required to acquire permits through a new set of integrated steps. Authorities are currently working on putting a unified building regulation for Dubai to provide a comprehensive guideline for customers.
The strategy focuses on digital and electronic measures to streamline the building permit process while linking all related Dubai Government’s entities and departments. A smart electronic system that links consultants, contractors, owners and developers to the relevant government agencies will go a long way in attracting domestic, regional and global investment flow into this key sector of the economy. The UAE is ranked top among Arab countries in the World Bank’s ease of doing business report ‘Doing Business 2017’. The country improved its global ranking by 5 points this year to 26th position. Having fewer steps in the process of setting up a business along with less bureaucracy and red tape can help businesses grow faster and efficient. Clearly, the UAE has been moving in this direction while fine tuning the regulatory framework, technology infrastructure and the human interface in its bureaucracy.