Dhs1.5 billion economic stimulus package for Dubai
Dhs1.5 billion economic stimulus package for Dubai Amidst the terror corona virus has created worldwide, Dubai has some happy news for its business sector and citizens I. A Dhs1.5 billion economic stimulus package has been launched under the directives of His Highness Sheikh Mohammed Bin Rashid Al Maktoum and Sheikh Hamdan Bin Mohammed Bin Rashid Al Maktoum to support companies and the business sector in Dubai.
Dubai has the potential to navigate challenges successfully and the stimulus package, that will be valid for the next three months, will help in going forward with the city’s development objectives. 15 initiatives pertaining to various sectors are included in the package.
The cost of doing business will be reduced and business procedures will be made easier. This will be applicable mainly in sectors that include tourism, retail, external trade and logistics.
Some of the measures that will be implemented for commercial and business sector under the package are;
• A freeze on the 2.5% market fees levied on all facilities operating in Dubai
• A refund of 20% on the custom fees imposed on imported products sold locally in Dubai markets
• Cancellation of the Dhs50,000 bank guarantee or cash required to undertake customs clearance activity
• Refund on the bank guarantee or cash paid by existing customs clearance companies
• A reduction of 90% on fees imposed on submitting customs documents of companies
In the external trade sector some of the initiatives include cancelling the submission of a banking instrument for custom-related grievances. Traditional wooden commercial vessels registered in the UAE will not have to pay mooring service fees for arrival and departure, as well as direct and indirect loading fees at Dubai Harbour and Hamriyah Port.
In the case of local commerce, the 25% down payment that one will have to pay to request installment-based payment of government fees for attaining and renewing licenses will be cancelled. Also, commercial license can be renewed without mandatory renewal of lease contracts and companies won’t have to acquire permits for new sales and offers.
In tourism sector, 4 initiatives are included;
• Reduction of municipality fees to 3.5 %, that are imposed on sales at hotels
• Fee won’t be levied for postponement and cancellation of tourism and sports events that are set to happen in the current year
• Freezing of fees for the rating of hotels
• Freezing the fees charged for the sale of tickets, issuance of permits and other government fees related to entertainment and business events
In addition to all these, there will be a reduction of 10% in water and electricity bills and 50 % reduction in deposit paid for water and electricity connections.
The initiatives will help in reducing the impact of the current global economic situation on businesses and people, by providing support to citizens, residents and investors.