SEDD completes 56,493 Licenses in 2020

18-02-2021

Sharjah Economic Development Department “SEDD” confirmed that the total number of licenses issued and renewed in the last year 2020 amounted to 56,493 licenses. The economic development indicators in Sharjah achieved a remarkable growth of 13% in the second half of 2020, bringing the total number of licenses issued and renewed by the Department during the second half to 33,326 licenses. Likely, the number of licenses issued during this period reached 2,935, with a growth rate of 17%.

Therefore, SEDD clarified that the number of renewed licenses rose to 30,391 licenses in the second half of 2020, with a growth rate of 13%, which is a positive indicator of investor attraction to the emirate and to the growth of the economy in its various sectors. Also, such thing confirms the stability and sustainability of the economic situation in the Emirate of Sharjah during the last period and the conditions that cast a shadow over the global economy in 2020, thanks to the incentives launched by Sharjah Executive Council. In addition, the total number of issued and renewed licenses in the first half of last year 2020 reached 23,167 according to data released by SEDD.

Also, The data issued by the Department for the second half of the year 2020 revealed that e-commerce licenses topped the issued and renewed licenses with a growth rate of 106%, while it had made a big leap in the first half with a growth of 333%. This license was followed by “Eitimad” domestic license with a rate of 48%. As for industrial licenses, their growth rates reached 17%, while commercial licenses reached a growth rate of about 13% in the second half of 2020. On the other hand, the professional licenses achieved a growth of 12% during the same period.

The "e-commerce" licenses recorded 120 licenses issued during the year 2020 compared to 27 licenses issued in the year 2019 with a growth rate of 344%. Some traditional licenses also added e-commerce activity, as these licenses reached 51% of the licenses for such activity.

On the other hand, “Eitimad” domestic license recorded growth rates for the issued and renewed licenses at rates of 7% and 33% respectively in 2020, with a total growth of 21%. Also, “Eitimad” license recorded a growth in the licenses operating under the "e-commerce” activity by 25% during the year 2020. It should be noted that the pledges to supply ready meals increased by 27%, and the activity of preparing sweets and traditional sweets, as well as preparing pies and pastries, increased by 71% in 2020.

Commenting on that, HE Sultan Abdullah bin Hadda Al Suwaidi, SEDD Chairman, said that issuing these data is one of the important economic indicators that the Department relies on to study the economic situation in the emirate. HE stressed that the Department's strategic goal is to achieve a comprehensive development plan that promotes economic development in Sharjah. Such thing is attained by developing services to match the highest international quality standards in terms of speed of delivery and access to dealers in the economic sector and investors in the emirate, and to strive to complete transactions easily and effectively.

In addition, HE emphasized that the effect of government incentives was evident on all economic, commercial and industrial sectors in the Emirate of Sharjah during the year 2020. These incentives included exemption of 25% of renewal fees, deduction of 50% of delay fines and inspection violations, exemption of 50% of fees for issuing industrial licenses, and exemption of nurseries from renewal fees. It is worth mentioning that the total number of licenses renewed during incentives amounted to 51,945 during 2020.

Likewise, HE pointed out that the transactions of service centers recorded a growth of 144% in the year 2020. He explained that the service centers are considered among the strategic partners of the Department, as these centers provide a set of procedures and services that are considered one of the main priorities in practicing commercial activities. He added that the transactions of the smart investor recorded a growth rate of 130% in the year 2020. Also, the number of service centers increased to 17 centers in 2020, with an increase of 13%, while the number of procedures for transactions completed in service centers increased to 58 procedures, by 49% in 2020, reaching The number of transactions through these centers is 193,513 in 2020.

Al Suwaidi added that the data issued by the Department reflects the confidence of the business sectors in the investment opportunities available in the emirate, noting that the results of the emirate’s business, including the issuance and renewal of business licenses, are consistent with the general growth in the GDP that Sharjah recently recorded. He noted that the Department's digital services come within the Department's initiatives to simplify procedures, reduce time, and provide services that meet the customers' aspirations. Likely, he clarifies that the growth rate of industrial licenses increased in the second half of 2020 by 17%, issued licenses grew by 23%, and renewed licenses grew by 16%. He intensified that these rates indicate SEDD’s interest in providing customers and investors in the various regions of the emirate with all its high-quality services, in accordance with the required and approved international standards.

From his side, Fahad Al Khamiri, Director of Registration and Licensing Department at SEDD, affirmed that the data issued by the Department indicate a significant increase in the investment movement in existing projects. He clarified that these indicators are ones showing the sustainable growth for the economy of the Emirate of Sharjah, as the emirate has a strategy through which it seeks to maintain a good pace of growth rates during the next phase. This strategy depends on attractions that include the distinctive geographical location and the great development witnessed by the service sectors in addition to a system of incentives.

Al Khamiri added that that the service centers, which are considered among the strategic partners of SEDD, work in harmony with the Department to provide a set of procedures and services that are essential for running business in the emirate. This contributes to providing a prestigious service environment for the business community in accordance with the highest standards and practices followed by providing simplified quality services that attract investors and stimulate the economic environment in Sharjah.

Al Khamiri also stressed that the Department's provide advanced digital services and employs the latest remote communication technologies to communicate with partners and the public of dealers. In addition, he clarified that it works to ensure that services are provided to them smoothly and safely. All of this help to encourage and stimulate businesses and expand trade and economic activities in the emirate.

On the other hand, Khalfan Al Herathi, Director of SEDD Branches, said that the Department pays great attention to economic development in all cities and regions of the emirate, especially the Eastern Region, which is witnessing great care by His Highness Sheikh Dr. Sultan bin Muhammad Al Qasimi, Supreme Council Member and Ruler of Sharjah.

He indicated that the data issued by the Department during the year 2020 revealed a growth during the second half of the licenses issued and renewed. It showed that there was a growth in the Department’s branch in the Central Region by 15%, and SEDD’s branches in the Eastern Region during the same period achieved a growth of 12%.

Al Herathi also pointed out that licenses issued and renewed in the Kalba Branch had achieved a growth of 15% during the second half of last year 2020. On the other hand, Dibba Al Hisn Branch came second with a growth of 12%, and Khor Fakkan Branch took third in place with a growth of 11% for the same period.

When it comes to legal side, Hamad Al Midfa, Deputy Director of Legal Affairs Department at SEDD, stated that the 100% digital transformation of the Department's procedures is a qualitative leap in terms of improving performance, raising efficiency and ensuring its safety from a legal point of view. Also, it is considered an application of Law No. 1 of 2006 in the matter of electronic transactions and commerce. He pointed out that the Department focused on providing all its legal services digitally, which, since its inception in 2015, is one of the quality services at the state level. He added that these legal digital services enable investors to complete more than 15 legal services without the need to review the department, including documenting commercial company contracts and amending the commercial license, waiver of the commercial license and cancellation of it.

He added that SEDD recently activated commercial companies' transactions contracts digitally during the pandemic, as part of its concern for public health and public safety, and in line with the precautionary and preventive measures issued by the competent authorities in the country, where 47,557 contracts for commercial companies were documented in 2020.

For his part, Salim Ahmed Al Suwaidi, Deputy Director of Commercial Control and Protection Department at SEDD, confirmed that the Department handled 9388 complaints it received during the year 2020. He carried on that SEDD conducted 132,718 inspection campaigns during the same period to ensure safety of commercial and economic establishments.

In detail, consumer protection complaints acquired the largest share with 8,468 complaints out of the total number of complaints handled, while the number of commercial fraud complaints reached 555, while service agent complaints reached 365.

It should be noted that consumer protection complaints were distributed to include many sectors, where complaints from the auto and spare parts sector recorded 21% of the total consumer protection complaints received by the Department. On the other hand, mobile phones and electronics complaints reached 14%. Also, complaints about personal services activities hit 12%, electrical appliances and building materials complaints reached 10%, furnishings and curtains 9%, fashion design and wedding services complaints reached 6.2%, and tourism, travel and shipping complaints reached 5.8%. It should be noted that the other complaints were distributed unevenly on the various other economic sectors.

Al Suwaidi added that SEDD will always seek to enhance consumer culture by educating consumers and investors of their rights and duties, through an ideal commercial environment with a high culture of awareness and impartiality in buying and selling procedures in all economic sectors, thus following the highest international standards and practices. He pointed out that these results confirm the active role that the Department plays in preserving consumers' rights, and the extent to which it can educate consumers and enhance the economic and commercial standing in the emirate.

Likewise, Al Suwaidi explained that SEDD is keen to address these complaints as soon as possible in order to implement its strategy to improve the satisfaction and loyalty of key customers and partners, by adopting best practices in procedures and quality systems for performance development.

Furthermore, Ali Ahmed Al Naqbi, Deputy Director of the Information Technology Department, said that the year 2020 witnessed great developments in development of digital services aspect at SEDD. Such thing had an important and pivotal implications and results in digital work, as the Department was able to raise the use of digital services from 54.3% in the year 2019 to 88.1% in 2020. Likely, 2020 witnessed an improvement in the development of the user experience, and facilitating the customer's journey, as the service quality index rose to 66 points. Thus, SEDD greatly reduced the number of rejected and non-integrated transactions, while it is working to adopt a green environment policy that requires converting all paper transactions into digital transactions.

In addition, Ahmed Saif bin Saed Al Suwaidi, Deputy Director of Commercial Affairs Department, explained that the Department has presented several specialized workshops through which it seeks to raise the level of commercial awareness among investors and entrepreneurs. Also, it works to strengthening the role of the Department in providing economic and legal advice to these groups, while more than 10 workshops were organized and held in different fields. It should be noted that the average rate of satisfaction with the workshops reached 80%. Bin Saed added that the total number of “Eitimad” license holders registered on the site is 240 persons, and the total number of entered effective license products is 260 products.

Moreover, Mariam Nasir Al Suwaidi, Deputy Director of Industrial Affairs, said that Sharjah has many factors that contributed to attracting industrial investments. She added that the emirate has an industrial base that extends for more than 40 years and includes a large number of industrial areas in addition to 3 advanced industrial cities, and Sharjah operates according to a diversified industrial system based on sustainability.