Dubai approves stimulus plan, slashing aviation fees
Emirate will also waive property registration fines for 60 days
Dubai slashed aviation and municipality fees as part of initiatives aimed at lowering corporate and government charges to boost economic growth, creating jobs and making it easier to do business in the emirate.
Under the new measures approved on Wednesday, the government will scrap 19 fees related to the aviation industry as it seeks to attract more than Dh1 billion of foreign investments into the sector, according to state news agency WAM.
The government will slash “market fees” imposed by Dubai Municipality from 5 per cent to 2.5 per cent, and freeze private school fees for the 2018/19 academic year.
Dubai Land Department has also been directed to provide a 60-day grace period before issuing fines to real estate developers for late-payment of property registration fees. The incentives aim to “reduce the cost of doing business in Dubai, and further cement the emirate’s position as a destination of choice for investments,” WAM reported.
Last month, Dubai and Abu Dhabi announced they were exempting companies from administrative fines for at least the rest of the year, as part of efforts to stimulate business growth. Dubai announced in April plans to implement new measures to help boost economic growth, attract new investments and cut the cost of doing business across sectors ranging from tourism to financial services.
Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of Dubai Executive Council, chaired the council’s meeting, on Wednesday, where the measures were approved.
Last monthh's decree by Sheikh Mohammed bin Rashid, the Ruler of Dubai, said the Department for Economic Development was cancelling fines imposed on businesses whose licences have expired until the end of 2018, while Abu Dhabi said it will exempt businesses whose licences have not been valid for more than 24 months.
“This decree is a positive step in promoting economic growth and consolidating Dubai’s position as one of the most important commercial and economic centres internationally,” Omar Bushahab, chief executive of the business registration and licensing at DED, said in a statement at the time.
“It reaffirms to investors and businessmen around the world that Dubai effectively addresses various economic variables with a forward-looking vision by adopting best practices and regulations. It also helps to remove concerns among investors and entrepreneurs looking to expand their business,” he added.
Meanwhile, Abu Dhabi this week announced a Dh50bn stimulus package to revitalise the emirate’s economy, as the government takes advantage of higher oil prices, which hit a three-year high of $80 per barrel last month, to finance growth.
The emirate’s Executive Council has been given a deadline of early September to draw up a detailed execution plan for the three-year package, plus 10 initiatives to stimulate growth in Abu Dhabi and create at least 10,000 jobs for Emiratis.
Updated: June 7, 2018 07:04 PM