The Abu Dhabi government recognizes the importance of Startup businesses in spreading the culture and acceptance of self-employment, the spirit of entrepreneurship, initiative and innovation, and a contributing element to the economy and its diversity, which enhances competitiveness and innovation. This support has led to the growth of this sector and an increase in the issuance of commercial licenses by 40% in 2019 compared to 16% in 2018.
In line with the directives of the wise leadership in the Emirate of Abu Dhabi to stimulate economic growth and support startups, the Department of Government Support has issued a package of economic incentives as stipulated by Circular No. (5) of 2020 regarding Economic Incentives in government procurement. The incentives includes the following items:
- To stop collecting tender guarantees to reduce the financial burden on companies during the year 2020
- Exempting startups from a guarantee of good implementation for projects that amount to AED (50) million during the year 2020.