The crown prince and ruler of Abu Dhabi, Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum has in a bid to revive the UAE’s dwindling economy and in order to track the impact of the measures on the economic situation of the nation that will be reviewed during this period announced a $400 million economic stimulus package for the next three months to support companies and the business sector in Dubai.
The latest developed stimulus package in tandem with ample support from Crown prince himself in tandem with Dubai Government has 15 latest initiatives that primarily focuses on following core portfolio’s like: –
- Commercial sector,
- External trade,
- Tourism, and the
- Energy sector
It has been done to overview the positive direct and indirect field impact on all other sectors as well over the next three months and which will be analyzed and figured at the end of the three months.
An Overview of different initiatives: -Commercial Sector, Retail, External Trade-
- Dubai Government in association with crown prince introduced nine latest initiatives for the Commercial and Business Sector for the next three months period inclusive of a 2.5% freeze on the Market fees levied on all core facilities that are being operated upon in Dubai. It was diminished during 2018 from 5% to 2.5%.
- This second such initiative extending to all Commercial sector includes a 20% refund on custom fees imposed mainly on imported products sold regionally in Dubai markets.
- Cancellation of $13,600 bank guarantee or cash transactions needed in order to undergo a customs clearance activity. It thus allows refunding of a bank guarantee or cash paid by existing customs clearance companies.
- 90% fees reduction for the companies on successful verification and complete issue free custom documents before the due date.
- For bolstering the existing external and cross-border trade, the provision of submission of banking instruments while submitting customs-related grievances has been canceled.
- Dubai Harbour and Hamriyah Port will exempt traditional wooden commercial vessels registered in the nation and also the mooring service fees for arrival and departure, as well as direct and indirect loading fees.
- Local Businesses: – For supporting the native businesses, the Dubai government has canceled 25% down payment required for requesting installment-based payment of government fees for obtaining and renewing licenses that have curbed down the additional financial burden on the SME arena.
- In a move aimed for stimulating business activity and easing government-related procedures, the government has proposed renewing all commercial licenses sans the mandatory renewal of any kind of any leased contracts as well exempting the companies from permits for new sales and offers.
An Overview of different initiatives: – Tourism Sector: –
There are four initiatives lined up by the Dubai Government in the next three months that were announced recently.
- Reduction in municipality fees imposed on sales at hotels from 7% to 3.5% which was brought down from 10% to 7% in 2018.
- Exempting the companies for the fees paid for the postponement and cancellation of tourism and sports events as scheduled during 2020.
- This third initiative freeze fees for a rating on hotels.
- Freezing all the fees charged for the sale of varied tickets, issuance of permits and other government fees related to entertainment and business events.
The stimulus package also supports the government in curbing the cost of living and doing business for citizens, expatriate residents and the business community through a 10% reduction in water and electricity bills, including those charged in the residential, commercial and industrial sectors, for a period of three months.