Stimulus Package for Dubai Economy
The global economy is going through challenging times with the outbreak of the Coronavirus. Businesses, investments, and daily life continue to be greatly affected by it. It is highly commendable that the Dubai Government has been swift to introduce measures in the form of an economic stimulus package to safeguard the interest of the city’s ailing business community.
On Thursday, March 12, the Dubai Government, under the directives of Highness Sheikh Mohammed Bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, presented an AED1.5 billion economic stimulus package for the next three months to support companies and the business sector in Dubai. The impact of these measures will be reviewed at the end of the proposed period.
Effective immediately, this package aims to take actions to
- reduce the impact of the current global economic situation,
- provide the highest support for citizens, residents, and investors,
- reduce the cost of doing business,
- simplify business procedures, especially in the sectors of tourism, retail, external trade, and logistics services.
The stimulus package includes 15 initiatives across different sectors. Here is a quick look at them.
Commercial & Business Sector
- Freeze on the 2.5% market fees levied on all facilities operating in Dubai.
- 20% refund on the customs fees imposed on imported products sold locally in Dubai markets.
- Cancellation of the Dh50,000 bank guarantee or cash required to undertake customs clearance activity. The bank guarantee or cash paid by existing customs clearance companies will be refunded.
- 90% reduction on fees imposed on submitting customs documents of companies.
- Cancellation of the requirement for providing a banking instrument while submitting customs-related grievances.
- Exemption of mooring service fees for arrival and departure for traditional wooden commercial vessels registered in the country. Direct and indirect loading fees at Dubai Harbour and Hamriyah Port have also been exempted.
- Cancellation of the 25% down payment required for requesting installment-based payment of government fees for obtaining and renewing licenses.
- Renewal of Commercial licenses without mandatory renewal of lease contracts.
- Exemption for companies from permits for new sales and offers.
- Reduction of municipality fees imposed on sales at hotels from 7% to 3.5%.
- Exemption for companies from fees charged for postponement and cancellation of tourism and sports events scheduled for the year 2020.
- Freeze on the fees for the rating of hotels.
- Freeze on the fees charged for the sale of tickets, issuance of permits and other government fees related to entertainment and business events.
Reduced Cost of Living
- 10% reduction in water and electricity bills, including those charged in the residential, commercial and industrial sectors.
- 50% reduction on deposit paid for water and electricity connections.
The announcement of these initiatives, aimed to stimulate the economy, is sure to offer some relief to businesses in Dubai, especially SMEs. It is the much-needed reassurance that entrepreneurs need in these tough times.
Source: Gulf News