Dubai Free Zones Council introduce stimulus package
The initiative was launched to reduce costs and enhance financial liquidity of companies in the zones
The Dubai Free Zones Council has launched an economic stimulus package to complement the Dubai government’s ongoing efforts to overcome the current COVID-19 outbreak.
The initiative is aligned with a recent package which was launched to reduce business costs and enhance financial liquidity of companies operating in the free zones, state-run Dubai Media Office stated.
The package, launched by the Dubai Free Zone Council, comprises five key elements: postponement of rent payments by a period of six months; facilitating installments for payments; refunding security deposits and guarantees; cancellation of fines for companies and individuals; and permitting temporary contracts that allow the free movement of labour between companies operating in the free zones for the rest of the year.
The entities that contributed to the economic stimulus package - in coordination with the Dubai Free Zones Council - include Dubai Silicon Oasis Authority, Dubai Airport Free Zone Authority, Jebel Ali Free Zone, Dubai World Trade Centre, Dubai International Financial Centre (DIFC), Dubai Development Authority, Dubai South, Meydan City Corporation, and Dubai Multi Commodities Centre (DMCC).
Speaking about the authority's efforts, chief executive officer and executive chairman, DMCC, Ahmed Bin Sulayem, said: “We have offered large exemptions on a wide range of fees for the 17,000 registered companies, by reducing registration fees by 50% for new companies joining the center, while current companies now have 30% discounts on renewal and amendment fees."
Elaborating on its plans to support the overall stimulus package, governor of DIFC, Essa Kazim, said: "DIFC proposes implementing five initiatives over the next three months, which centre on enhancing its efforts to support companies during these exceptional circumstances. Initiatives include waiving annual license fees for new companies during the next three months, and a 10% discount on renewal fees for existing licenses during the same period.
DIFC will reduce its ownership transfer fees from 5% to 4% for any property sale that occurs within the authorised three-month period, if ownership transfers are registered at DIFC within 30 days after the end of the three-month period."