► reading news

Domestic Company

Visa red-tape hurting firms, says Dubai Chamber chief

21/11/2011 - Lengthy and costly visa applications are squeezing businesses and taking a toll on profits, the man charged with overseeing the interests of Dubai’s private sector said Monday. Bureaucratic red tape has become a burden for firms operating in the Gulf emirate, with many running up significant tabs to absorb the cost of securing visas for staff and investors, said Hamad Buamim, director general of the Dubai Chamber of Commerce and Industry (DCCI). “I have no doubt that relaxing visa processes would help businesses to profit,” he said on the sidelines of the 5th Arabian Business forum in Dubai. “There are too many restrictions related to the time, the cost, and the process in general. We want business people to look at things long-term. [The law] has to be reviewed.”

The cost of securing visas has become a recurring complaint among both large and smaller businesses in Dubai, as firms have struggled to contain overheads in the tough economic climate. During a retail forum organised by DCCI in October, some of the city’s largest conglomerates warned that escalating visa and business costs could force an increase in the sale price of goods in the emirate.  “Doing business is getting more and more expensive, and we have to look at that,” said Mohi-Din BinHendi, president of BinHendi Enterprises. “I think everyone knows how expensive it is to get your employees across. Bringing a person here costs me AED9,000, and I have almost 1,800 staff.”

Khalid Al Tayer, CEO of Al Tayer Retail Group, said visa costs were a significant burden. “Unfortunately over time, the costs do seem to get out of hand and need to be monitored very closely,” he said. “We need to start renewing [visas] every three years, and our retail operation has close to 3,500 people. That can become quite costly.”

DCCI was one of the first trade bodies to oppose a controversial ruling from the UAE government last year that effectively cut expatriate residence visas from three years to two. The ruling, which reduced labour card validity and had a knock-on effect on residence visas, meant an added cost for businesses in an already tough economic climate, said Buamim. The body has lobbied the government to return labour card validity to three years for low-skilled workers and stretch it to five years for investors, in a bid to ramp up foreign investment in the emirate. “We’re trying to bring it back to where it was and introduce a different system for the investors – right now they are treated almost like labourers,” he said. “When you [are talking about an employee] that’s a short-term thing but an investor is here for a longer term. This is at the top of our agenda,” he said, adding the Chamber hoped the ruling would be pushed through within two years.

Source: ArabianBusiness

Discussion

Keine Kommentare

Post a comment

 

HOLDINGS | TRUSTEES | LAW | TAX | FACILITATION | CORPORATE

Welcome to the Web of MCI Counselors Law & Tax - have a good day!

Language

New articles

\r\n (Dubai, 20/10/2014) In August 2014 already, the “so much to UAE committed” foreign bank Standard Chartered announced to exit parts of its SME business in the federat...
\r\n (Dubai & Berlin, 30/09/2014) The increasing “European-ization” of all areas will now also make no longer halt before inheritance. At least, once international ba...
\r\n (Dubai, 04/09/2014) This week the World Economic Forum (WEF) published the results of its annual Global Competitiveness Report (GCR) 2014-2015 with impressive rankings for the U...
\r\n (Dubai, 30/08/2014) Since June/July this year, licensees of Dubai’s DMCC start to rub their eyes when it comes to their annual license renewal. Out of the blue, the Free Z...
\r\n (Dubai, 08/08/2014) MCI offers actually several Shelf Companies, aged between 2yrs, 10mths and 6yrs, 1mth - as per August 2014.\r\n\r\n\r\n\r\n \r\n \r\n \r\n DESCRIPTION\r\n \r\n \r\n ...
\r\n (Hong Kong, 2014-07-27) This month, the first revision of Shanghai Free Trade Zone’s (FTZ) Negative List took place.\r\n\r\n\r\n\r\n Shanghai Free Trade Zone (FTZ) was launched in...
\r\n (Dubai, 14/07/2014) The UAE Ministry of Labour (MOL) has announced that it will stop the usage of the old plastic labour cards & paper contracts starting from July 13, 2014....
\r\n (Hong Kong, 25-06-2014) We found a very interesting BBC documentary about China's debt policy and situation from February 2014, critical as well (of course). But watch yours...
\r\n (Dubai, 13/04/2014) With effect 01/05/2014, Emirates NBD massively increases the required Minimum Balances for its Business Banking Clients.\r\n\r\n\r\n\r\n Emirates NBD, one of UAE'...
\r\n (Dubai, 26/03/2014) Finally, Virtual Currency (VC) Tax Rules - including the most popular, Bitcoin - came to the US on March 25! Several insiders predicted that the government w...

Facebook

Tags