Abu Dhabi, UAEFriday 6 December 2019

Kizad cuts fees for over 75% of its services to boost investment

Fees for remaining services will be reduced and streamlined, says Abu Dhabi Ports

Kizad, a subsidiary of Abu Dhabi Ports cuts fees for over 75 per cent of its services. Courtesy Abu Dhabi Ports
Kizad, a subsidiary of Abu Dhabi Ports cuts fees for over 75 per cent of its services. Courtesy Abu Dhabi Ports

Khalifa Industrial Zone Abu Dhabi (Kizad), an Abu Dhabi Ports subsidiary, has waived the charges for more than 75 per cent of its services starting this month to boost investment into the emirate and reduce the cost of doing business.

Three quarters of services will be offered free of charge, while fees for a significant number of the remaining services will also be reduced and streamlined to a simpler tariff structure, Abu Dhabi Ports said on Tuesday.

“We continue to support the government initiatives to build an investor-friendly environment by providing our partners and customers with the incentives they need for their businesses to thrive and grow,” said Mohamed Al Shamisi, chief executive of Abu Dhabi Ports.

Kizad has attracted more than 500 investors and Dh65 billion in investment across multiple sectors, including metals, polymers, oil and gas, automotive, food, energy and logistics since it was launched in 2010.

“The cost of setting up and maintaining a successful business at Kizad is more achievable now than ever before. It is an ideal opportunity for companies of all sizes to benefit from such incentives for either growing their business or entering new markets,” added Mr Shamisi.

The exemptions come as Abu Dhabi government implements Ghadan 21, the three-year Dh50bn stimulus programme to boost the economy and improve the standard of living.

Other departments also introduced similar measures. In March, the Department of Culture and Tourism Abu Dhabi reduced tourism fees to 3.5 per cent from 6 per cent, municipal fees to 2 per cent from 4 per cent and municipality hotel room fees per night to Dh10 from Dh15.

Abu Dhabi Securities Exchange (ADX) also reduced its trading commission fees starting from July 1 by 50 per cent up to 90 per cent to attract more investors and build liquidity.

At the federal level, the UAE Cabinet in May took a decision to amend and waive fees for more than 1,500 federal government services to enhance the national economy, reduce costs to business owners and increase the competitiveness of the UAE.

Last month, the UAE Ministry of Economy cancelled fees on more than 100 government services and reduced charges for others to strengthen economic growth and generate more job opportunities.

The ministry has amended the fee and fine structure for 110 services, cancelling 102 fees and reducing them for eight services by as much as 50 per cent, according to the state news agency Wam.

The UAE is implementing a series of reforms aimed at attracting foreign investors, creating jobs and diversifying the economy away from oil. The country has allowed 100 per cent foreign ownership of companies in 13 sectors from manufacturing to renewable energy, eased visa restrictions and provided incentives for small and medium enterprises.

Updated: August 6, 2019 01:47 PM