DMCC Future of Trade Report Highlights and the DMCC Trade Licence
What did the latest edition of the DMCC Future of Trade report foresee as the challenges for the next decade? We’ve had a look at this research from this top Free Zone that gathers insights from trade experts and business leaders in Dubai, Zurich, Singapore, Silicon Valley, London, Johannesburg, Shenzhen and Houston. We’ll highlight some of the critical points to consider, as well as some details about acquiring a trading licence in the DMCC and DMCC company registration.
What are some of the phenomena that will impact trade in the 2020s according to the DMCC?
Trade growth could increase by up to $18 billion US during the next decade. The drivers that the DMCC sees impacting it would be technology. It could come through the progress in digital technology and policy and how technology can reduce costs for trading. With the wealth of opportunity coming from technological solutions in the value chain, increasing automation and AI, along with other trends, could lead to further complications.
Another growth area for trade in the 2020s is cross-border services. Why? The World Trade Organisation (WTO) projects that the share of global services as a percentage of international trade will grow from 18% in 1995 to 25% in 2030 and possibly 30% once we get to 2040. The caveat is that the costs on services are typically double that of goods, and technological solutions will further drive this increased share of growth.
Inevitably, infrastructure plays a critical role in trade growth. However, the current context of the global pandemic will exacerbate the public funding gap we were already seeing. The strategic rivalry between the United States and China, a critical geopolitical theme, also complicates matters in this regard.
The DMCC is not optimistic in regards to advances in global trade policy. They cite that the innovation in the policy realm must come from smaller discussions rather than a large-scale policy discussion as the WTO’s Doha Development Round appears to have been a failure.
What does the DMCC recommend for companies?
For businesses, they recommend that you must adapt to a trading landscape that will see more challenges. That includes looking at your supply chains to make them more resilient while boosting their efficiency. You should also expect more modest growth rates given the volatility. They also cite being more ambitious on your company’s sustainability reporting as it will bring many benefits to your organisation.
Another recommendation they make is to have your enterprise invest in the technological solutions that not only reduce the costs on trade but can open yourself up to more partners through leveraging them. An example would be AI, as they’re predicting that half of manufacturing supply chains will have invested in AI by 2021.
So, what do you need to know if you’re interested in a DMCC general trading licence?
This piece of research exemplifies the DMCC’s prowess as a Free Zone. It’s no wonder that the Financial Times’ fDi magazine named it the Global Free Zone Award Year for the sixth year in a row. As we’ve mentioned in our previous articles about the DMCC Free Zone, all entities looking to pursue DMCC company setup opt for a single DMCC Licence that covers all the permitted activities. Some of the permitted trade licence activities in the DMCC include diamonds, gold, technology, coffee, tea and more.
As for the cost, you should expect to pay at least 51,063 AED. If you’re curious about the pricing for other Free Zones, you can have a look at our comparison here. Our expert team of Free Zone experts at Europe Emirates Group base our operations out of this Free Zone, giving us a privileged perspective. We can walk you through the process of acquiring a trade licence at the DMCC, verifying the DMCC trade licence and the cost for the DMCC trade licence renewal once the time comes. Would you like to get started on the path towards company setup? Schedule your initial consultation today.
Written by
Adrian Oton
CEO, Europe Emirates Group