COVID-19 – Dubai Free Zones Launches Economic Stimulus Packages

by commitbizadmin 24, Apr 2020

COVID-19 – Dubai Free Zones Launches Economic Stimulus Packages

To reduce the business costs and boost liquidity for companies operating in various Dubai Free Zones, Free Zone Council in Dubai has announced a new support package. It is already known that businesses all around the world are being impacted heavily due to the COVID-19 pandemic, and every government is trying its best to help the companies during the crisis.

UAE, therefore, launched the economic stimulus package in an effort to soften the impact of the coronavirus on the economy. The kit consists of Dh1.5 billion and includes five main elements –

  1. The deferment of rent payments for up to six months
  2. The cancellation of penalties for companies and individuals
  3. The facilitating of payments through monthly installments
  4. The refund of various insurance and guarantee claims, and
  5. Temporary contracts that permit the free movement of labor between companies in the free zone

This stimulus package is part of Dubai’s effort to low down the adverse effects of the crisis and speed up the revival of the economy. This package enhances confidence in the Emirate and increases its competitive advantage worldwide.

Which Dubai Free Zones are Contributing?

The free zones which are contributing to the stimulus package in coordination with the Dubai Free Zone Council are - Dubai Silicon Oasis Authority, Dubai Development Authority, Meydan City Corporation, Dubai Airport Free Zone Authority, Dubai World Trade Centre, Jebel Ali Free Zone, Dubai International Financial Centre, Dubai South, and Dubai Multi Commodities Centre.

The Dubai free zones form a significant part of the economic activity in the Emirate with over 45,000 registered companies, nearly 390,000 employees. They account for about a third of Dubai’s Gross Domestic Product. The Dubai Free Zones play a prominent role in promoting sustainable economic growth, attracting investments, and supporting Dubai’s vision to be the world’s most sought-after investment destination and the ideal place to work, live, or visit.

Initiatives by Different Dubai Free Zones

  • The Dubai Investment Financial Centre (DIFC) has also proposed introducing five initiatives over the next three months, including waiving annual license fees for new companies, and a 10 percent discount on renewal fees for existing licenses. Companies in this free zone will get an advantage from deferred payment plans for all commercial properties which are under DIFC Investments for a period of six months. The financial hub will also decrease its ownership transfer fees from 5 to 4 percent for any property sale that happens within the three months.
  • The Dubai Development Authority and TECOM Group have also offered postponement of payments to its businesses. New businesses can postpone their lease periods and have their registration fees canceled for six months. They will also be relieved from fines on expired licenses and other financial and administrative expenses. The package also provides flexible fee payments, including building permits and services, in addition to refunding security deposits and guarantees to help cash flow.
  • The Dubai Multi Commodities Centre has also initiated a stimulus package with a discount of up to 50%. To know more about this initiative, click here.

In addition to this, free zone authorities have launched many flexible payment options for different sectors.

How can Commitbiz help?

Tough times need tough measures; hence, we at Commitbiz have come up with a #STARTFROMHOME initiative to help businesses in the UAE. We have fine-tuned our business setup procedure so that you can register your business from the convenience of your home. Your company can be incorporated in just ten days, and what’s more, you can also apply for an offshore bank account from your home.

Utilize these weeks to register your Dubai business, and once this pandemic is in control, your company will be up and running. Also, don’t forget, with the present economic situation, we’re giving away special quarantine discounts on our business setup packages.

Contact us today to incorporate your business in the UAE.