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Combating coronavirus: Dubai South announces economic stimulus package

Dubai - Package features flexible payment plans with easy instalment schemes, waivers of penalties on late renewals, and 20% reduction on licence fees renewals.

Dubai South Free Zone announced on Sunday several economic stimulus incentives to mitigate the effects of the current situation that the UAE and the world are going through as part of the vision of the UAE's leadership to stimulate the economy and support different sectors of the business society.

Sheikh Ahmed bin Saeed Al Maktoum, President of the Dubai Civil Aviation Authority (DCAA) and Chairman of Dubai Airports, said the stimulus package is part of a mandate to exert tireless efforts and align them with the initiatives and decisions of the government so that Dubai will remain a sought-after business destination and maintain its prominent position on all global performance indicators.

"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," he said.

Dubai South Free Zone, the emirate's flagship urban project, is the latest public entity to join other free zones and government departments to roll out stimulus measures to offset the impact of Covid-19 breakout on various economic activities.

"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," Dubai South Free Zone said.

Khalifa Al Zaffin, Executive Chairman of Dubai Aviation City Corporation & Dubai South, said the 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."

He said 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 instalments. Furthermore, individuals and companies looking to establish a new business will be granted rental fee reductions of up to 25 per cent.

In mid-March, the government of Dubai unveiled a Dh1.5 billion economic stimulus package to support companies and the business sector.  

Already Dubai Free Zones Council has announced an economic stimulus package to support business continuity in all sectors.

The stimulus package includes postponing rent payments for six months; facilitating installments for payments; refunding security deposits and guarantees; cancelling fines for both companies and individuals; and permitting temporary contracts that allow the free movement of labour between companies operating in the free zones for the rest of the year.

Other free zones actively implementing stimulus measures include the Dubai International Finance Centre, Dubai Development Authority, Dubai Multi Commodities Centre, and Abu Dhabi Global Market.

issacjohn@khaleejtimes.com