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.
Stimulus stretch in Dubai
Following initiatives by Dubai’s leading free zones (see the previous alert),
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Both Jebel Ali Free Zone (JAFZA) and Dubai World Trade Center (DWTC) reduced their registration, licensing and related administrative fees for existing and new applicants by up to 70%.
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All of Dubai Silicon Oasis Authority, Dubai Airport Free Zone Authority, Dubai World Trade Centre, Dubai Development Authority, Dubai South, and Meydan City Corporation introduced a stimulus package incl. refunding of security deposits/guarantees, postponing rent payments for 6 months, as well as cancellation of fines and flexible installment options.
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Dubai Internet City is waiving incorporation fees for new applicants for the next 3 months.
Updates from the Northern Emirates
- RAK ICC has announced Business Stimulus Measures offering reduction on incorporation and premium package fees and waiver of penalties and reactivation fees.
Beyond the free zones
Over the same 3 months, import businesses operating in UAE mainland can capitalize on a stimulus package notably including:
- Commercial licenses renewal without mandatory lease renewal
- Custom fee refund [20%] on imported products sold locally
- Bank guarantee / cash deposit [USD 13,613 / AED 50,000] required to undertake customs clearance: Full waiver
- Reduction [by 90%] of fees imposed on submitting corporate documents to customs
- Cancelation of the requirement to provide banking instruments while submitting customs-related grievances
Should you require any further information regarding the options available to you, please feel free to contact us!
For more information about this topic, please see our publications:
Structuring Alert: UAE Free zones Stimulus Tracker update [4.1]
Structuring Alert: UAE Free zones Stimulus Tracker update [4.0]
Structuring Alert: UAE Free zones Stimulus Tracker update [3.1]
Structuring Alert: UAE Free zones Stimulus Tracker update [3.0]
Structuring Alert: UAE Free zones Stimulus Tracker update [2.1]
Structuring Alert: UAE Free zones launch Economic Stimulus Packages
DMCC – New Law introduces DMCC Regulator