Pursuant to the directives of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, and with the follow-up of His Highness Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of the Executive Council, Dubai Free Zones launched yesterday, an economic incentive package An additional contribution, including the enhancement and support of the business sector in Dubai and the mitigation of the effects of the current economic situation, and included five axes that include: postponing the payment of rents for a period of up to six months, facilitating financial payments through soft installments on a monthly basis, and returning many amounts of insurance and guarantees, And the abolition of many fines on polytheism T and individuals, as well as allowing the mobility of employment in companies and sectors operating in the free zones freely through permanent or temporary contracts and without fines during the year 2020.

Free Zones

His Highness Sheikh Ahmed bin Saeed Al Maktoum, Chairman of the Dubai Free Zones Council, said in a statement yesterday that “Dubai Free Zones are working to support the economic system continuously and at all times, which enhances the competitiveness of Dubai and ensures business continuity for companies in all sectors, especially companies.” Small and Medium.

His Highness stated that, “In light of the exceptional circumstances that the world is witnessing today, and to complement the efforts made by the Dubai government, all Dubai free zones have sought to work together as one integrated system to highlight its strategic role and enhance its sense of social responsibility in supporting the Dubai economy and overcome the current crisis, by launching Economic incentives package added to what was announced earlier in order to reduce the cost of business and enhance the financial liquidity of companies operating in the free zones and to serve the public interest ».

His Highness stressed that "the success of the Dubai economy in overcoming the crisis depends on the companies success in maintaining the continuity of their business, and the support that can be provided to achieve this."

His Highness added that «the economic facilities provided by the free zones will complement the national efforts of the concerned authorities to mitigate the effects of the recent global changes, by providing the necessary liquidity to the business sector and giving it full ability to deal with the effects of the current conditions in order to maintain competitive advantage and sustainable growth, which is a step It would maintain a wide range of small and medium-sized companies and retain the competencies and expertise by making exceptional decisions that included this. ”

Temporary contracts

Allowing the free movement of labor in companies and sectors operating in the free zones comes through permanent or temporary contracts and without fines during the year 2020, as an advantage applied to workers wishing to move or demobilized or working on leave without pay, in order to facilitate the re-employment and exploitation of available labor By companies that want to use it.

This step is an extension of the prominent role that the free zones in Dubai participate in promoting sustainable economic growth, attracting investments, and supporting the achievement of Dubai's vision and location as the preferred place to live and work and the preferred destination for investment, as the percentage of the contribution of free zones in Dubai's GDP reached 33%, The number of companies operating there is 44 thousand and 985 companies, with a total number of employees of 389 thousand and 336 specialists in many fields.

A large group of free zones participated in the package through cooperation and coordination with the Free Zones Council, namely: Dubai Silicon Oasis Authority, Dubai Airport Free Zone, Jebel Ali Free Zone, Dubai World Trade Center authority, Dubai International Financial Center, Dubai Development Authority, and Dubai South, Meydan City Corporation, and Dubai Multi Commodities Center.

Be positive

In this regard, Chairman of the Board and CEO of Dubai Ports World Group and President of Ports, Customs and Free Zone Corporation, Sultan Ahmed bin Sulayem said: “During these difficult times when the global business sector faces major challenges, we are keen on DP World to provide the necessary support For companies by offering a package of discounts and exemptions from fees in the free zone, the National Industrial Park and the Dubai Automobile Free Zone (Docams). This includes dropping fines for licenses expired for companies operating in the Jebel Ali Free Zone (Jafza), the National Industries Complex and the Dubai Motor Free Zone. The new companies will also be able to start their business without having to pay the license fees for the first year. ”

Global fluctuations

In the same context, Hilal Saeed Al-Marri, Director General of the Dubai World Trade Center Authority, said: “Dubai's economy has great flexibility and ability to adapt to severe and unpredictable global fluctuations, an issue that is becoming more clear today, as the world today faces a new dynamic reality that calls for To take concerted and coordinated collective action to respond to what is happening, which requires intensifying efforts between the public and private sectors as well as civil society. Because the Dubai World Trade Center is a cornerstone of business tourism in Dubai, it has a national responsibility to assist partners in dealing with the current risks of COVID-19, by maintaining the sustainability of business operations, and in this context, the incentive package that was revealed today aims to Reducing the burden on the most affected sectors in Dubai, especially small companies, as well as providing the necessary and appropriate assistance to each of our customers, partners and suppliers. ”

Economic movement

For his part, Dubai Airport Free Zone Authority Director General, DAFZA, Vice President and CEO of Dubai Silicon Oasis Authority, Dr. Mohamed Al Zarouni, stressed that “the rational leadership spares no effort in taking all necessary measures and measures to protect society in all its categories, and this is what distinguishes its approach in Enhancing trust and increasing the emirate's global competitiveness at all levels. ”

Continue operations

The DIFC Governor, Issa Kazim, affirmed that, “Pursuant to the directives of His Highness Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of the Executive Council, and in line with the initiative of the Economic Incentives Package proposed by the Dubai government, we are committed as a leading financial center in the region to support Our society during these unprecedented times. The Dubai Business Center's new business stimulus package shows its continued commitment to implementing comprehensive measures to support the business center at the center, and enabling companies to continue to conduct operations easily and flexibly. ”

Said bin Hamid Matar Al Tayer, Chairman of the Board of Directors, CEO of Maidan City, said: “In implementation of our rational government’s directives to develop initiatives that support the business sector during the current circumstances the whole world is going through, and after listening to the requirements of dealers in the Maidan Al-Hurra region, On moving with our customers hand in hand to a new stage of economic recovery, a package of initiatives has been developed in cooperation and coordination with the Free Zones Council, aimed at easing the financial burden on individuals and companies, foremost of which are exempting fines for expired licenses, and facilitating financial payments. Yeh through monthly checks, and the exemption of license fees for the first year of the new companies ».

The package presented by the Dubai Development Authority and the TECOM Group included a set of incentives that were pivotal in allocating the resources necessary to support and support small and medium-sized companies, with the aim of ensuring their continuity by facilitating and postponing the financial payments and lease periods for new companies, in addition to canceling all company registration fees. For a period of six months subject to renewal and cancellation of all fines prescribed for non-renewal of commercial licenses and other financial and administrative fines. The package also included granting flexibility in paying all fees, including building licenses and services, in addition to returning guarantees to companies therein Q enhance financial liquidity.

Ahmed bin Saeed:

"We work as one integrated system to overcome the exceptional circumstances the world is witnessing."

"Our aim is to reduce the cost of business, enhance the liquidity of companies in free zones, and serve the public interest."

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Axes to enhance corporate liquidity:

Postponing the rent payments until 6 months.

Easy installment payments.

Refunding the amounts of the guarantees and guarantees.

- Canceling fines for companies and individuals.

Temporary contracts that allow the free movement of labor between companies operating in the free zones.

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One thousand companies and 390 thousand employees working in the free zones.

Free zones contribute 33% of the Emirate's GDP.

Dubai World Financial proposes 5 initiatives

The Dubai International Financial Center has launched five initiatives to be implemented over the next three months, focusing its efforts on enhancing the activity of the center and the community of operating companies, in light of these exceptional circumstances. Initiatives include the abolition of annual license fees for new companies registered during the next three months, and a 10% reduction in renewal fees for existing companies in the financial center, which is due for renewal during these three months in particular.

Moreover, as an additional facility for companies, future payment plans will be provided for all commercial properties owned by DIFC Investment, up to a period of six months.

The financial center will reduce ownership transfer fees in the Dubai International Financial Center from 5% to 4% for any sale of the property (or any part of it), which takes place within the authorized three-month period, provided that the transfer of ownership is registered with the property registrar in the center Financial within 30 days, after the end of the three-month period mentioned as a maximum.