Dubai boosts economic stimulus to Dh6.3b
New Dh1.5B initiative includes waiver of govt registration penalties; free licence renewal for private schools
dubai — The Dubai government announced fresh Dh1.5 billion worth of stimulus measures on Saturday, bringing the total support given to businesses during the pandemic to Dh6.3 billion.
“We aim to reinforce the liquidity of companies, support business continuity and reduce the cost of doing business,” tweeted Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of the Dubai Executive Council, as he announced Dubai’s third stimulus package.
The new stimulus covers 18 initiatives, including the extension until the end of 2020 of the 50 per cent reduction of municipality tax and Tourism Dirham paid by hotels and restaurants, from 7 to 3.5 per cent. Some of the other businessfriendly measures in Stimulus 3.0 include penalty waivers for private schools along with a free renewal of their commercial and educational licences.
“We learned from our elders to conquer the impossible... now our ambitions are high and we aspire for the best,” said Sheikh Hamdan.
On March 12, Dubai announced its first stimulus package of Dh1.5 billion covering 15 initiatives, while the second Dh3.3 billion package, launched on March 29, was aimed at helping the private sector businesses overcome the impact of Covid-19.
“We have directed expedited payment of financial dues to contractors, as well as the return of financial guarantees for construction sector activities related to commercial licences, to be replaced by another system that guarantees all rights of the involved parties. We also approved an initiative to waive penalties for private schools and allow free renewal of their commercial and educational licences until the end of December,” the Crown Prince said in a number of tweets.
Sheikh Hamdan said the flexibility and durability of the economy is an advantageous factor and it will support the private sector to quickly overcome this phase. “We are keen on businesses returning to normalcy, and we reaffirm our commitment to support all economic sectors in Dubai,” he added.
“We look forward to a great future led by His Highness Sheikh Mohammed bin Rashid’s vision, an exceptional leader with exceptional goals. We learned from our elders to conquer the impossible. Now our ambitions are high and we aspire for the best,” said Sheikh Hamdan.