DP World to cut business-related fees by up to 70% at Jafza
The move is expected to benefit 7,500 businesses, the company said
DP World slashed business-related fees by up to 70 per cent for companies operating at Jebel Ali Free Zone (Jafza), as part of its efforts to enhance the ease of doing business and boost trade.
The reduction in registration, licensing and related administrative fees is expected to immediately benefit more than 7,500 businesses that operate out of the free zone as well as new investors, DP World said in a statement on Tuesday.
“It’s a timely move to inspire our customers towards pursuing their business targets with greater confidence and purpose. It’s specifically designed to create value and opportunities for the companies to channel their resources to support their activities sustainably,” Mohammed Al Muallem, chief executive and managing director of DP World, UAE region and chief executive of Jafza, said.
He said the initiative was undertaken following a recent call by Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and chairman of Dubai Executive Council, to reduce the cost of doing business and enhance investor experience.
“Trade has always powered Dubai’s economic development and DP World has played a central role in supporting it,” Mr Al Muallem said.
“The activities of our flagships Jebel Ali Port and Jebel Ali Free Zone are very closely connected with companies located there to take advantage of the world class infrastructure facilities and investment incentives and to connect to global markets.”
DP World's UAE operations contribute to over 33.4 per cent of Dubai’s gross domestic product.
A range of other online services will also be offered free of cost as a result of Jafza's digitalisation efforts, the statement said.
Jafza accounts for 23.9 per cent of total foreign direct investment flow into Dubai, providing employment to more than 135,000 people. In 2018, Jafza generated trade worth $93 billion (Dh341.5bn).
Freezones were a major driver of foreign trade in Dubai last year. The emirate's non-oil foreign trade grew by 6 per cent in 2019 to reach Dh1.37 trillion in 2019 on the back of economic activity across the emirate's freezones, the Government of Dubai Media Office said in an earlier update.
DP World's latest move also comes as the deadly coronavirus outbreak crimps global growth outlook, disrupts supply chains and dents demand for travel. A recent report by the United Nations Conference on Trade and Development cautioned that global foreign direct investment could fall as much as 15 per cent in 2020 due to the rapid spread of the coronavirus.
Updated: March 10, 2020 06:46 PM