Dubai free zone cuts fees by 70%

Khaleej Times - - NATION - Wa­heed Ab­bas and freez­ing the trad­ing li­cence for year to help the com­pa­nies over­come chal­lenges and im­prove Dubai’s com­pet­i­tive­ness. — wa­heed­ab­bas@khalee­j­times.com

dubai — Dubai World Trade Cen­tre Au­thor­ity (DWTCA), a free zone of­fer­ing offshore li­censes to busi­nesses, on Mon­day slashed li­cens­ing and in­cor­po­ra­tion fees as well as im­mi­gra­tion-re­lated ser­vice fees for the ex­ist­ing and new com­pa­nies in or­der to over­come chal­lenges re­lated to high costs for com­pa­nies.

A state­ment is­sued by the free zone said the fee for reg­is­tra­tion and li­cens­ing has been re­duced be­tween 50 to 70 per cent and be­tween 40 to 50 per cent on im­mi­gra­tion re­lated ser­vice, depend­ing on the size of the com­pany.

Mayank Sawh­ney, man­ag­ing di­rec­tor, MaxGrowth Con­sult­ing, said the sen­ti­ments are now low and all these mea­sures of re­duc­ing dif­fer­ent fees are be­ing taken to im­prove in­vestor sen­ti­ment and lower the cost of do­ing busi­ness.

“Be­cause small busi­nesses are not able to cope up with the costs so the gov­ern­ment is re­duc­ing fee to lower the bur­den of visas and other costs. When busi­nesses are op­er­at­ing here, the econ­omy cir­cu­lates and grows. Ul­ti­mately, the ben­e­fi­ciary of these ini­tia­tives will be small and medium scale busi­nesses,” Sawh­ney said.

“Sim­i­larly, Abu Dhabi is also is­su­ing home li­cences so you can op- er­ate from home and don’t need an of­fice. All these mea­sures by Dubai and Abu Dhabi are aimed at run­ning the busi­ness more cost-ef­fec- tively. These steps are in the right di­rec­tion to en­sure that busi­nesses don’t shut down,” he added.

Of late, the free zones in UAE have been an­nounc­ing a num­ber of ini­tia­tives fol­low­ing the in­struc­tion of the gov­ern­ment to help the com­pa­nies tide over eco­nomic and fi­nan­cial chal­lenges. Dr Mo­hammed Alza­rooni, vice-chair­man and CEO of DSOA and di­rec­tor-gen­eral of Dafza, told Khaleej Times in an in­ter­view in April that Dubai Sil­i­con Oa­sis and Dubai Air­port Free Zone were also con­sid­er­ing re­duc­ing the fees.

He­lal Saeed Al­marri, di­rec­tor­gen­eral, DWTCA, said these com­mer­cial propo­si­tions are de­signed to sup­port the gov­ern­ment’s man­date on re­duc­ing fees to scale down the cost of do­ing busi­ness for the pri­vate sec­tor and to of­fer a vi­able ecosys­tem that sup­ports sus­tain­able, long-term suc­cess, as well as at­tracts re­gional and global head­quar­ters to con­sol­i­date and re­lo­cate their op­er­a­tions at con­sid­er­able scale to Dubai. “The sig­nif­i­cant re­duc­tions in li­cens­ing and in­cor­po­ra­tion fees fur­ther sup­port The Ex­ec­u­tive Coun­cil of Dubai’s re­cently an­nounced widerang­ing pol­icy mea­sures, and will col­lec­tively in­crease the com­pet­i­tive­ness of, and the ease of do­ing busi­ness within the DWTCA free zone,” he said.

In ad­di­tion, the re­cent an­nounce­ments by the UAE gov­ern­ment to al­low 100 per cent for­eign own­er­ship in main­land is putting free zones un­der pres­sure to come up with novel and in­no­va­tive ini­tia­tives to re­tain ex­ist­ing ten­ants and at­tract more com­pa­nies be­cause full for­eign own­er­ship was one of the big­gest ad­van­tages of­fered by the free zones in the coun­try. Ear­lier this month, the De­part­ment of Eco­nomic De­vel­op­ment (DED) in Dubai an­nounced a host of mea­sures for busi­nesses in­clud­ing pay­ing fees and fines in in­stall­ments

These com­mer­cial propo­si­tions are de­signed to sup­port the gov­ern­ment’s man­date on re­duc­ing fees to scale down the cost of do­ing busi­ness for the pri­vate sec­tor He­lal Saeed Al­marri, DG, DWTCA

The sen­ti­ments are now low and all these mea­sures of re­duc­ing dif­fer­ent fees are be­ing taken to im­prove in­vestor sen­ti­ment and lower the cost of do­ing busi­ness Mayank Sawh­ney, MD, MaxGrowth Con­sult­ing

— Sup­plied photo

the fee for reg­is­tra­tion and li­cens­ing has been re­duced be­tween 50 to 70 per cent and be­tween 40 to 50 per cent on im­mi­gra­tion re­lated ser­vice, depend­ing on the size of the com­pany.

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