The new law, comprising 37 articles, aims to "organise economic activities to create an environment conducive to boosting investment in Dubai," according to a statement on Sheikh Mohammed bin Rashid's website.

 

According to the law a 'one-stop shop' will be established to streamline the issuing of business licences and to deal with investors. 

The law will also allow non-Emiratis to do business in Dubai on the condition they have a local agent.

 

The Department of Economic Development (DED) will be responsible for the regulation of economic activity for all businesses outside the emirate's free-zones.

 

Dubai, already an attractive city for business and with strong global economic links, was huit hard by 2008's world economic crisis.

 

But predictions for the emirate's future economic performance are positive.

 

Investment bank Beltone Finance forecast real GDP growth for Dubai to accelerate to 3.9 per cent and 4.5 per cent in 2011 and 2012, respectively -- solid increases on the 2.2 per cent it managed in 2010.

 

But Mohamed Rahmy, an analyst at Beltone, is worried about the effect of a possible economic slowdown. 

 

"The growing uncertainties over the already fragile global economic recovery pose a significant downside risk to our UAE macroeconomic forecasts. The UAE’s trade balances and balance of payment will be the first to suffer, especially if a correction in oil prices take crude oil below the $90", Rahmy said in a note.