The Dubai International Financial Centre proposed introducing five initiatives over the next three months/Bloombergby Kudakwashe Muzoriwa
Dubai has announced an economic incentive package for its free zones in light of exceptional circumstances related to the coronavirus pandemic, according to Dubai Media Office.
HH Sheikh Ahmed bin Saeed Al Maktoum, the Chairman of Dubai Free Zone Council, said, “Free Zones’ stimulus measures complement national efforts to reduce the impact of recent global challenges. They provide companies with the liquidity necessary to tackle the current situation and maintain a competitive advantage and sustainable growth.”
The economic incentive package includes postponing rent payments for six months and cancellation of some fines for companies and individuals.
The economic stimulus package will be implemented by the Dubai Silicon Oasis Authority, Dubai Airport Free Zone Authority, Jebel Ali Free Zone, Dubai World Trade Centre, Dubai International Financial Centre, Dubai Development Authority, Dubai South, Meydan City Corporation, and Dubai Multi Commodities Centre.
The authority will also permit temporary contracts that will grant free movement of labour between companies operating in the free zones for the rest of this year. The move will benefit workers seeking better job opportunities and those who have been asked to take unpaid leaves to find alternative employment in Dubai.
Recently, the Dubai International Financial Centre proposed introducing five initiatives over the next three months including waiving annual licence fees for new companies and a 10 per cent discount on renewal fees for existing licences.
Similarly, the Dubai Multi Commodities Centre introduced a stimulus package that includes a range of discounts and waivers such as a three-month suspension of rent for Flexi Desk and DMCC Business Centre tenants renewals or monthly instalment with no discount.
The Dubai Free Zone Council’s move follows the announcement of an AED 1.5 billion economic stimulus package by Crown Prince of Dubai, HH Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, to mitigate the impact of the coronavirus on companies and the business sector in the emirate.