UAE freezone authorities business support initiatives explained
COVID 19 has surely affected the way we conduct business. Many business face uncertainty and decreased future turnovers and adverse cash flows. In lieu of this the UAE freezone authorities are committed to help freezone businesses to counter this uncertainty.
We address below how key freezones authorities in the UAE are responding to the economic uncertainty:
DMCC (Dubai Multi Commodities Centre)
DMCC has introduced the "Business Support Package'. Measures include:
DIFC (Dubai International Financial Centre) Free zone
80 per cent reduction on the company set up fee if shareholders are residents of JLT area
Up to 50 per cent reduction on the total company set up fee if shareholders are residents of other UAE areas
Flexible rent payment options for new DMCC Business Centre tenants
No requirement to visit DMCC for business set up as the process is completely digitalized and any new company can be formed at DMCC from anywhere in the world.
DIFC authority have announced a new "Business Stimulus Initiative". Measures include a waiver of annual licensing fees for new registrations, 10 per cent discount on renewal fees for existing companies and a reduction on property transfer fees from 5 per cent to 4 per cent for any sale of property that will take place within 2020.
JAFZA (Jebel Ali Free Zone)
JAFZA freezone authorities announced the "Flexible Payment Plan" that enables all existing freezones to defer their rental payments for two months and pay with easier instalments effective from April 2020. This will help businesses to sustain and maintain their cash flow.
SHAMS (Sharjah Media City) Free Zone
Sharjah Freezone authorities are granting 20 per cent discount on a 2-years Visa package, 25 per cent discount on 3-years Visa package and 35 per cent on 5-years Visa package.
RAKEZ (Ras Al Khaimah Economic Zone),
Ras Al Khaimah Economic Zone have announced a "SME Client Support Boosters" offering 15 per cent discount on renewal, 100 per cent waiver on late renewal penalties and Flexible instalment options.
IFZA (International Free Zone Authority)
International Free Zone Authority based in Fujairah have introduced new company set up fee discounts and waiver of E-channel deposits.
In nutshell, UAE freezone authorities are taking measures to minimize the adverse impact of COVID 19. These initiatives ensure smooth business continuity of freezones based in the UAE as well as maintain investor confidence in the region.
In case you wish to know more about the new economic measures and how it may benefit you and your existing or potential business, please contact our director, Mahmood Ali Tassadaq at firstname.lastname@example.org for a complimentary consultation.