In response to the UAE Government’s efforts to provide relief to businesses during the COVID-19 pandemic, a number of free zones have announced major relief packages including fee waivers, rent holidays and waiver of penalties.
M/HQ has compiled – and will be updating on an ongoing basis – a “Stimulus Tracker” highlighting key incentives provided by UAE various free zones and registrars.
The Stimulus Tracker complements M/HQ’s “Which Free Zone for Which Purpose” guide – see here –, a comparison of UAE’s major free zones, their core focus, key features, and USPs.
These two sources will help you and/or your clients determine which free zone is most suitable for every specific business concept.
Financial free zones lead the way
Both free zones with a core focus on financial services (regulated or nonregulated), Abu Dhabi Global Market (ADGM) and Dubai International Financial Centre (DIFC) introduced substantial relief packages impacting both existing licensees and new applicants, whether regulated or non-regulated. Key measures entering in effect 01/04/2020 include:
ADGM
- Registration/License renewal fee: Full waiver
[01/04/2020 through 25/05/2020] - Rental/services charges [ADGM Square]: deferment for 2020
DIFC
- Registration fee: Full waiver [01/04/2020 through 30/06/2020]
- License renewal [not incl. DFSA and Data protection]
fee: 10% off [01/04/2020 through 30/06/2020] - Rental charges [selected building c/o DIFC Investments Ltd]:
3-months deferment
So does Dubai Multi Commodities Centre (DMCC)
UAE’s largest generalist free zone, also introduced a number of incentives for existing members and new entrants applicable 01/04/2020, including:
- Registration fee: Up to 50% off, along with Flexi Desk for year 1 – License renewal fee: 30% off [01/04/2020 through 31/05/2020]
- Rental/services charges [flexi desks and DMCC Business Centre]:
3-months deferment – Full waiver of late renewal and reinstatement penalties - Number of flexible payment options
Dubai Silicon Oasis Authority, Dubai Airport Free Zone Authority, Jebel Ali Free Zone, Dubai World Trade Centre, Dubai Development Authority, Dubai South and Meydan City Corporation has yet to make formal announcements but are expected to follow suit.