The number of licences issued to branches of foreign companies in Dubai in 2006 has soared by more than 20% the Department of Economic Development (DED) has revealed.

170 licences to branches of foreign firms were issued last year, 20% more than in 2005 when 133 were handed out.

British companies were issued the maximum number of licences with 24. German businesses were granted 13 licences followed by British Virgin Islands (11), Indian (10) and American (8) companies. Among the Arab countries, Lebanon topped the list with six licences issued to businesses from the country followed by Kuwait with three. Story continues below ? advertisement

"The investor-friendly economic climate of Dubai makes it a preferred hub for businesses from the region," said Ali Ibrahim, deputy director general for executive affairs at the DED.

"Dubai offers distinctive advantages for businesses and has significant strengths with regard to the labour market, public finance, domestic economy, institutional framework and basic infrastructure. This is highlighted in the ‘Dubai in World Competitiveness Report 2005', published jointly by DED and the Switzerland-based International Institute for Management Development."

"The emirate has grown by an average of 12% over the last five years with enterprises in Dubai standing to benefit from the availability of local capital, an evolved financial market and a pool of skilled workforce," said Ibrahim.

"The growth of Dubai is also the result of greater co-ordination between the public and private sectors as is highlighted by the success of the Dubai Shopping Festival, Dubai Financial Market and the Dubai Quality Award."

He added that "diversification" had been the "keyword in Dubai's success story" and that today, the emirate had "successfully positioned itself as the hub of trade, tourism, IT, media, finance and healthcare in the region".

"The government of Dubai has invested heavily in developing and sustaining the city's state-of-the-art infrastructure and continuously streamlines procedures and regulations to ensure that they are investor friendly."