Sunday 10 January 2021
Dubai has launched a new economic stimulus package worth AED 315 million (USD 86 million), bringing the total value of business incentives to AED 7.1 billion (USD 2 billion).
The increase is based on the recommendations of the Dubai Economy Support Committee to continue supporting all economic and business sectors in Dubai. The new package extends the validity of some of the initiatives announced in the previous stimulus packages for another six months, starting from January 2021 until June 2021.
The Dubai Government continues to assess the global economic situation and developments in the exceptional circumstances in an effort to develop practical strategies that will enable the city to mitigate the repercussions of the global pandemic on the economy.
The government’s efforts aim to reduce the impact of the global crisis, accelerate the pace of recovery of economic sectors, and provide the means necessary to ensure business continuity.
The initiatives included in the stimulus package include exempting commercial establishments and hotels that did not benefit from the reduction in previous packages launched in 2020 from the market fees one time during 2021. Non-beach hotels and their restaurants are refunded 50 percent from the hotel sales fee as well as the Tourism Dirham Fee.
In the tourism, entertainment, and events sector, the exemption from the fees charged for postponement and cancellation of recreational and sports events and activities, including conferences and exhibitions, has been extended. The new package also extends the freeze on fees charged for ticket sales, issuing permits and other government fees imposed on entertainment and business events.
Commercial licenses can still be renewed without mandatory renewal of lease contracts. The package also includes extending the cancellation of the 25 percent down payment requirement for accepting installments of licensing fees and license renewal on a monthly basis. Additionally, nurseries leasing land lots from the Knowledge Fund Establishment will continue to benefit from the 50 percent reduction in land rent.