Hamdan bin Mohammed launches an economic incentive package of 1.5 billion dirhams for 3 months

In implementation of the directives of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, His Highness Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of the Executive Council, launched an economic incentive package worth 1.5 billion dirhams for the next three months, with the aim of Supporting companies and the business sector in Dubai, enhancing financial liquidity and mitigating the effects of the exceptional economic situation that the world is witnessing today.

His Highness, the Crown Prince of Dubai, stressed that «the world is going through difficult economic conditions today as a result of many challenges that have escalated due to the health conditions that accompanied the spread of the Corona virus in several regions around the world, and the repercussions that have had a great impact on many global economic sectors, in When the directives of His Highness Sheikh Mohammed bin Rashid came to launch this package of economic incentives in order to achieve the highest levels of support for the Dubai community in all its sectors, including citizens, residents and investors, and to ensure the support of everyone in facing an exceptional circumstance the world is going through.

In a statement yesterday, His Highness said: “We are keen to provide various forms of support that guarantee Dubai its leadership and maintain its position as the best place to live and work. The world is going through difficult times today, and we have the ability to face all challenges with efficiency and competence, and we have learned from His Highness Sheikh Mohammed bin Rashid that the challenges enable societies to enhance their ability to develop and advance creative solutions and creative ideas. Today, we present these incentives in order to encourage moving towards our ambitious development goals without allowing any challenge to hinder our progress or slow our pace of development. ”

His Highness added: “Efforts are continuing and ideas do not stop in order to confirm our position as influential partners in making the future, while the comfort, happiness and commitment of all members of society remain a priority that we give all attention and care. We mobilize all its capabilities to keep Dubai always the model and role model in providing the ingredients that enable man to achieve the highest levels of excellence and success. ”

Preventative measurements

This package aims to take preventive measures to reduce the cost of doing business and facilitate procedures, especially in the sectors of tourism, retail, foreign trade, and logistics services, in addition to a set of incentives for all citizens and residents in the emirate, as this package enters into immediate implementation for a period of three months Then the impact is evaluated according to the prevailing economic conditions at the time.

The new package, prepared by the Dubai government, included 15 initiatives that touch the sectors of trade, retail, foreign trade, tourism and energy in the emirate, as this package is expected to have a direct and indirect positive impact in all other relevant business sectors over the next three months.

Business sector

Dubai government is presenting to the business community nine initiatives during the next three months, the first is to freeze the application of the market fee of 2.5% to all establishments operating in the emirate during the next three months, which was previously equivalent to 5% before being reduced in June 2018, in When the second initiative requires the return of 20% of the 5% customs tariff paid for imported goods that are sold locally, on imports of all goods sold in the local market of Dubai and the UAE.

The package also included the cancellation of the bank or cash guarantee required for the practice of customs clearance activity, which is set at 50 thousand dirhams, with the return of bank and cash guarantees provided to existing customs clearance companies, in addition to a 90% reduction in fees for submitting customs documents to companies.

Foreign trade

In the series of initiatives in support of foreign trade, the requirement of the bank instrument when submitting customs grievance requests has been removed; to reduce costs and to expedite the processing of customs grievance requests and settlement. At the port of Dubai and Hamriyah Port.

On the level of local trade, the 25% down payment requirement for requesting installment of government fees for licensing and renewing licenses has been abolished in an effort to reduce the financial burden, especially for small and medium-sized companies, in addition to renewing commercial licenses without mandatory renewal of lease contracts, to facilitate business practice and ease government requirements . Companies will also be exempt from new permits and sales licenses.

These initiatives will contribute to stimulating the movement of foreign trade and enhance regional and global competitiveness, by reducing costs, improving liquidity, and easing financial burdens on companies, apart from facilitating customs procedures and doing business.

The tourism sector

The initiatives package presented by the Dubai government included four initiatives that are concerned with supporting the tourism sector and related sectors in the emirate for the next three months, the first of which was to reduce the municipality fee by 50% on hotel sales to make the fee 3.5% instead of 7%. This step follows a previous step taken in 2018, which was to reduce the municipality fee for hotel sales from 10% to 7%.

The second initiative was to exempt companies from postponing and cancellation fees for tourism and sporting events during 2020, and the third initiative was to freeze the application of classification fees to hotels, while the fourth initiative came within the framework of the targeted initiatives package to support the tourism sector in Dubai, to freeze the application of ticket fees and issue Permits and other government fees for entertainment and business events.

Water and electricity tariffs

The initiatives package presented by the Dubai government also included two initiatives to reduce the cost of the business sector and the cost of living for all residents of the emirate, citizens and residents, as well as the business sector in Dubai in relation to energy consumption, where the first initiative aims to discount 10% of the value of the water and electricity consumption bill for all categories Consumers (residential, commercial and industrial) for the next three months, while the second initiative aims to reduce 50% of the insurance amount.

- 10% discount on the water and electricity consumption bill for all categories for a period of 3 months.

Return 20% of the value of the customs tariff for imported goods.

Freezing the market fee and reducing the municipality fee 50% on hotel sales.

- 90% reduction on fees for submitting customs documents to companies.