What latest Dubai stimulus means for business
VARIOUS RELIEF MEASURES ANNOUNCED FOR RETAIL INDUSTRY, HOTELS, NURSERIES AND OTHERS IN PRIVATE SECTOR
Dubai yesterday announced an additional Dh500 million economic stimulus package to support the economy. The new package brings the total value of stimulus injected by the government in 2020 to Dh6.8 billion.
Shaikh Hamdan Bin Mohammad Bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of The Executive Council, launched the economic initiatives.
As part of the latest stimulus, advertising companies affected by the pandemic will be exempted from Dubai Municipality’s advertising permit fees for three months, retroactive from March 15 to June 16, 2020.
Support for nurseries
Shaikh Hamdan also announced support for private nurseries in Dubai, including exempting them from the renewal fees of the commercial licence and extending the licences of existing clinics operating in these nurseries. Additionally, the licences of health professionals working in nurseries will be extended for six months from the date of expiry of the licence. Nurseries located on lands owned by the Knowledge Fund Establishment will be eligible for a 50 per cent reduction in rent until the end of 2020. An initiative to support the taxi service sector through adjusting the government fees to enhance liquidity for operators was also approved.
Waivers extended
Shaikh Hamdan also approved the extension of some of the initiatives announced in the previous stimulus package, for three months until the end of 2020, to support the private sector.
These include extending the freeze on market fees levied on all sectors in Dubai until the end of 2020.
Docking fees
The exemption for traditional commercial vessels registered locally in the UAE from docking fees at Dubai Port and Hamriya Port ( including direct and indirect loading fees) will also be extended.
The Dh50,000 bank or cash guarantee required to conduct customs clearance activity will continue to be waived, and bank and cash guarantees paid by customs clearance companies will be refunded. Also, the fees on customs documents will remain discounted from Dh50 to Dh5 for each transaction, and the requirement for providing a banking instrument when submitting customs- related grievances continues to be cancelled.
Hotel fees remain frozen
In the tourism, entertainment and events sector, the freeze on fees charged for hotel rating, ticket sales, permits and other government levies has been extended until the end of 2020. The freeze on government permit fees for the retail sector will be also be extended until the end of November 2020.
No need for leases
The cancellation of all fines charged for late payment of government service fees and payments of penalties to renew commercial licences has also been extended.
Furthermore, commercial licences can be renewed without the mandatory renewal of lease contracts. The 25 per cent down payment requirement for paying government fees in instalments will also be cancelled.
“We strive to support the business sector while working together to counter the negative effects of the Covid- 19 pandemic. The business sector is at the heart of our economy. We are keen to revive the business environment and open new horizons for entrepreneurs and investors in line with Dubai’s future aspirations,” Shaikh Hamdan said.