Dubai Free Zones Council unveils new economic stimulus package

Business Bureau, Gulf Today

Under the vision of His Highness Sheikh Mohammed Bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, and the directives of Sheikh Hamdan Bin Mohammed Bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of The Executive Council of Dubai, Sheikh Ahmed Bin Saeed Al Maktoum, Chairman of Dubai Airport Free Zone, confirmed that the Dubai Free Zones Council is continuously working to support the economic system to enhance Dubai’s competitiveness by ensuring business continuity in all sectors, especially for small and medium enterprises.

In the current exceptional circumstances, Dubai Free Zones are working together to highlight their strategic role and social responsibility to support Dubai’s economy. Dubai Free Zones Council announced an economic stimulus package to complement the Dubai Government’s efforts to overcome the current situation. This initiative complements an earlier package announced recently to reduce business costs and enhance financial liquidity of companies operating in the free zones.

The Dubai Free Zones Council’s package contributes to strengthening and supporting Dubai’s businesses by reducing the impact of the current economic situation. It includes five key elements: postponement of rent payments by a period of 6 months; facilitating instalments for payments; refunding security deposits and guarantees; cancellation of fines for both companies and individuals; and permitting temporary contracts that allow the free movement of labour between companies operating in the free zones for the rest of the year. These advantages also benefit workers seeking better job opportunities, and those who have been granted unpaid leave by facilitating their re-employment in jobs in Dubai.

Sheikh Ahmed Bin Saeed Al Maktoum stressed that ensuring the business continuity of companies and providing them the support they need are critical to the Dubai economy’s ability to successfully overcome the crisis. He added that the Dubai Free Zones’ stimulus measures complement national efforts to reduce the impact of recent global challenges. They provide companies with the liquidity necessary to tackle the current situation and maintain competitive advantage and sustainable growth. This initiative supports a wide range of SMEs in maintaining their competitiveness.

Dubai Free Zones play a prominent role in promoting sustainable economic growth, attracting investments and supporting Dubai’s vision to be the world’s preferred investment destination and the ideal place to live, work and visit. Their contributions to Dubai’s Gross Domestic Product reached 33%. They provide a base for 44,985 companies and provide a total of 389,336 jobs Entities that contributed to this economic stimulus package, in coordination with the Dubai Free Zones Council, include: Dubai Silicon Oasis Authority, Dubai Airport Free Zone Authority, Jebel Ali Free Zone, Dubai World Trade Centre, Dubai International Financial Centre, Dubai Development Authority, Dubai South, Meydan City Corporation, and Dubai Multi Commodities Centre.

Sultan Ahmed Bin Sulayem, Group Chairman and CEO of DP World and CEO/Chairman of Ports, Customs & Free Zone Corporation, said: “During these difficult times, the business sector is facing major challenges. We are keen to provide the necessary support for companies through a package of discounts and exemptions from fees in Jebel Ali Free Zone (JAFZA), National Industries Park (NIP) and Dubai Cars & Automotive Zone (DUCAMZ). This includes waiving fines on expired trade licenses for companies operating in these zones. In addition, new companies can start their businesses without paying license fees for the first year.”

Helal Saeed Almarri, Director General of the Dubai World Trade Centre Authority, said: “Dubai’s economy has a great flexibility and the potential to adapt to unpredictable global fluctuations. This has been proven as the world faces a challenging reality that requires strong coordination and rapid collective action, in addition to strengthening collaboration efforts between public and private sectors and society. As an essential tourism pillar in Dubai, DWTC bears national responsibility to support its partners in dealing with the current risks of COVID-19. We can help maintain sustainable commercial operations through these measures and reduce burdens on the sectors most affected by this crisis, such as SMEs”, by providing the necessary support to all customers, partners and suppliers.

Dr Mohammed Al Zarouni, Vice Chairman and CEO of Dubai Silicon Oasis Authority, and Director General of the Dubai Airport Free Zone Authority (DAFZA) stressed that Dubai’s wise leadership took all the necessary measures to protect society in every way. This enhances confidence in the emirate and increases its competitive advantage globally. He added: “The world is facing difficult challenges given the current uncertain and unstable situation which threatens the economic climate. Through its initiatives, Dubai is proving its ability to mitigate the negative effects of the crisis and speed up the revival of its economy, with future positive returns for the Emirate and the region, in addition to the preventive measures it has taken to limit the spread of COVID-19”.