Sunday 25 October 2020
The government of Dubai has announced an AED 500 million economic stimulus package to support various business sectors across the economy. The new package brings the total value of stimulus packages introduced by the UAE government in 2020 to AED 6.8 billion.
The stimulus package is aimed at mitigating the impact of the current global economic situation on businesses. The main goal is to accelerate the pace of recovery and ensure the economy can tide over this phase.
Advertising companies affected by the pandemic will be exempted from Dubai Municipality’s advertising permit fees for three months, retroactive from March 15 to June 16, 2020.
Private nurseries are exempted from the renewal fees of the commercial license and extending the licenses of existing clinics operating in these nurseries. Additionally, the licenses of health professionals working in nurseries will be extended for six months from the date of expiry of the license. Nurseries located on lands owned by the Knowledge Fund Establishment will be eligible for a 50 percent reduction in rent until the end of 2020.
An initiative was also announced to support the taxi service sector through adjusting the government fees to enhance liquidity for operators.
The validity of some of the initiatives announced in the previous stimulus package was extended for three months until the end of 2020 to support the private sector in coping with the repercussions of the pandemic. These include extending the freeze on market fees levied on all sectors in Dubai until the end of 2020. The exemptions for traditional commercial vessels registered locally in the UAE from docking fees at Dubai Port and Hamriya Port (including direct and indirect loading fees) will also be extended.
The AED 50,000 bank or cash guarantee required to conduct customs clearance activity will continue to be waived, and bank and cash guarantees paid by customs clearance companies will be refunded. Also, the fees on customs documents will continue to be reduced from AED 50 to AED 5 for each transaction, and the requirement for providing a banking instrument when submitting customs-related grievances continues to be cancelled.
In the tourism, entertainment and events sector, the freeze on fees charged for hotel rating, ticket sales, issuing permits and other government fees related to entertainment and business events has been extended until the end of 2020. The freeze on government permit fees for the retail sector will be also be extended until the end of November 2020.
Cancellation of all fines charged for late payment of government service fees and payments of penalties to renew commercial licenses has also been extended. Furthermore, commercial licenses can be renewed without the mandatory renewal of lease contracts. The 25 percent down payment requirement for paying government fees in instalments will also be cancelled until the end of 2020.
These initiatives come in addition to a number of previously announced initiatives that have been extended until the end of 2020. These include an initiative to abolish fines, exempt private schools from commercial and educational license renewal fees, extend the period of temporary entry of loaned artworks through Dubai ports, to include all works of art that entered the city from the beginning of the fourth quarter of 2019 and have still not exited.
The municipality fee on hotel establishments’ sales will be set at 7 percent and the ‘Tourism Dirham Fee’ will be restored, where hotel establishments and restaurants will be refunded 50 percent of the fee until the end of 2020. The initiative to waive all deferral and cancellation fees for all recreational and sporting events, including exhibitions and conferences will be extended.