Abu Dhabi's KIZAD offers 25% reduction on land lease tariffs
The tariff reduction offers companies a competitive advantage by lowering initial investment if they set up in KIZAD
The UAE’s Khalifa Industrial Zone Abu Dhabi (KIZAD) – a subsidiary of Abu Dhabi Ports – has begun implementing a 25% reduction on land lease tariffs for new contracts in line with the decisions announced by the Abu Dhabi Executive Council on 16 March.
The tariff reduction aims to offer companies who set up in KIZAD a competitive advantage by lowering initial investment, and subsequently aims to spur economic activity in Abu Dhabi.
The Executive Council initiative, which expands on the incentives offered under the Ghadan 21 programme, is aimed at providing relief from the challenging global economic conditions.
Commenting on the initiative, the group chief executive officer of Abu Dhabi Ports, Captain Mohamed Juma Al Shamisi, said: “The 25% reduction in the land lease tariffs supplements the competitive advantage that KIZAD already has to offer to businesses which are looking to establish their base of operations here.”
Land lease tariff reduction is one of the many incentives announced by the government to stimulate the economy.
Other benefits include exemptions till the end of the year on commercial real estate registration; subsidised water and electricity for commercial and industrial activities; an $816.77m (AED3bn) allocation for SME credit guarantee programme; waiver of performance guarantees of up to $13.6m (AED50m) for startups; a committee to review lending options for local companies; and a waiver of industrial and commercial penalties.