Staff Reporter, Gulf Today

DMCC, the world’s flagship Free Zone and Government of Dubai Authority on commodities trade and enterprise, welcomed 665 companies to its Free Zone in Dubai during the first quarter of 2022.

This represents DMCC’s best first quarter since its inception over twenty years ago, a 13 percent year-on-year increase, and a 25 percent increase compared to the five-year average. The results demonstrate Dubai’s status as a world-class business destination and the ease of doing business by setting up a company in DMCC.

“Registering 665 new companies in the first three months of 2022 is another record broken for DMCC, and serves to show the huge potential on offer when joining our Free Zone in Dubai. Looking ahead, we will keep up the momentum and go further and faster to attract the world’s most ambitious firms looking to set up and do business in Dubai. Following the overwhelming success of Expo 2020 Dubai, these are exciting times for the emirate and DMCC will push ahead and continue to promote the huge commercial potential that Dubai possesses,” said Ahmed Bin Sulayem, Executive Chairman and Chief Executive Officer, DMCC.

DMCC’s key markets such as India, UK, Germany and France performed stronger than the same period in previous years. DMCC also witnessed 34 percent increase in Dubai company formation from China in Q1 compared to the same period last year. Success in China follows DMCC’s significant Mandarin engagement programmes that run country-wide throughout the year, and its representative office in Shenzhen.

Meanwhile, specific outreach programmes to markets such as Israel and Turkey have led to an increase in quarterly company registrations by 350 percent and 100 percent during the quarter, respectively. DMCC has also registered growing interest from emerging trade hubs such as Indonesia and Vietnam.

Following the launch of the DMCC Crypto Centre in May 2021, DMCC has seen a surge in the number of crypto and blockchain businesses joining its Free Zone. In the first quarter of 2022 alone, 16 percent of all company registrations were for crypto-related activities.

This record-breaking quarter follows on from DMCC’s best-ever year in 2021, in which it attracted 2,485 companies to Dubai. This milestone pushed DMCC past the 20,000 member companies milestone, indicating DMCC’s significant value proposition to businesses looking to expand internationally by setting up a company in Dubai, and tap into global trade.

Meanwhile, Dubai Next, the digital crowdfunding platform that has attracted many young innovators and start-up ideas, is anticipating an increase in fund-seekers and contributors following the country approving a federal system for such platforms recently.

His Highness Sheikh Mohammed Bin Rashid Al Maktoum, Vice President, Prime Minister and Ruler of Dubai, announced the new federal framework that will allow operators from the government and private sectors to back crowdfunded projects.

Currently, Dubai Next has 398 contributors and 62 campaigns approved and running, while the total number of campaigns registered till date is 1,570. Between the first three months and now, the campaigns have increased by 50 percent, while contributors have increased by 60 percent.

Dubai Next was launched in May 2021 by  Sheikh Hamdan Bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of Dubai Executive Council. The platform, which is managed by Dubai SME, an agency of the Department of Economy and Tourism (DET) in Dubai, is attracting innovators and has already enabled eight start-up concepts raise the required funds.

“Crowdfunding has had a significant impact in ushering in a new generation of entrepreneurs in the UAE. It provides an alternate financing option, and an ideal opportunity to turn start-up ideas into viable projects. Students aged 12 and above can create campaigns on Dubai Next and the campaigns seen so far are diverse and innovative,” said Abdul Baset Al Janahi, CEO of Dubai SME.

Crowdfunding involves small amounts sourced towards financing of a single commercial venture. Anyone with an innovative idea or project can create a campaign on Dubai Next and seek funds from contributors. The not-for-profit platform is open to people of all nationalities.

“The Dubai Next experience confirms that crowdfunding can motivate our growing youth population to pursue entrepreneurship, thus ushering in a new generation of entrepreneurs and eventually positioning Dubai as the global hub of innovative enterprise,” Al Janahi said.

“With the federal legislation in place and the Securities and Commodities Authority being responsible for regulating the activities of crowdfunding, the crowdfunding platforms will see increased transparency, competitiveness and demand from the growing community of local, regional and global innovators in the UAE. It will create a sustainable pipeline of creative start-ups in the UAE,” added Al Janahi.