Saturday 04 July 2020 - 4:52:00 pm

Dubai South announces economic stimulus package to support its business community in 2020


DUBAI, 3rd May, 2020 (WAM) -- As part of its keenness to align with the vision of the UAE’s leadership to stimulate the economy and support different sectors of the business society, Dubai South Free Zone announced economic stimulus incentives to mitigate the effects of the current situation that the UAE and the world is going through. This announcement is part of Dubai South Free Zone’s unwavering commitment to foster a business-friendly environment and meet the needs of its valued customers.

H.H. Sheikh Ahmed bin Saeed Al Maktoum, Chairman of Dubai Civil Aviation Authority and Chairman and Chief Executive of Emirates Airline and Group, and also Chairman of Dubai Airports said: "Dubai South is proud to be part of the emirate’s overall value proposition and we are keen to enhance its competitiveness and attractiveness to ensure it can attract more domestic and foreign direct investment. Our current customers are our most important asset; therefore, our focus is to provide them with all our support in these challenging times and beyond, so that they will be able to support the national economy and contribute to GDP growth. The stimulus package is part of our mandate to exert our tireless efforts and align them with the initiatives and decisions of our government so that Dubai will remain a sought-after business destination and maintain its prominent position on all global performance indicators."

As the continuity of businesses is a priority, Dubai South will offer individuals and companies in its free zone flexible payment plans with easy instalment schemes as well as waivers of penalties on late renewals and cancellations of contracts and licenses. Customers will also benefit from a 20 per cent reduction on licence fees renewals, while first year license fees for new customers in the aviation, logistics and e-commerce sectors and the Business Park will be waived.

In addition, customers who operate in the Business Park Free Zone will have the opportunity to apply for a lease deferral request of up to six months, which will be granted on a case-by-case basis. Meanwhile, Dubai South Business Centre customers renewing their contracts between now and October 2020 will receive a reduction of up to 25 per cent on their renewal fees as well as the flexibility to settle annual rental fees in up to four installments. Furthermore, individuals and companies looking to establish a new business will be granted rental fee reductions of up to 25 per cent.

Khalifa Al Zaffin, Executive Chairman of Dubai Aviation City Corporation & Dubai South, said: "This incentive package complements the measures announced by the Government of Dubai and its ongoing efforts to reduce the costs of doing business in the emirate and help enhance corporate liquidity. The support will enable companies to maintain their resources and employees and to be fully prepared to continue their operations, especially as the lockdown is being gradually lifted, paving the path towards gradual business cycle normality.

In mid-March, the government of Dubai unveiled a AED 1.5 billion economic stimulus package to support companies and the business sector. The initiative aimed to enhance liquidity and reduce the impact of the current global economic situation following the outbreak of COVID-19.

Dubai South was launched as a Government of Dubai project in 2006, representing an emerging, 145 sq. km, master-planned city centred on the happiness of the individual. The city is identified as Dubai’s flagship urban project, in line with Dubai Plan 2021. The development is designed to sustain a population of a million inhabitants and create 500,000 jobs in an integrated, economic environment that supports all types of businesses and industries.

 

WAM/Hazem Hussein