Dubai Economic Stimulus Gains Momentum

Published June 7th, 2018 - 08:51 GMT
It includes freezing private school fees, and reducing and cancelling certain government fees. (KhT)
It includes freezing private school fees, and reducing and cancelling certain government fees. (KhT)

Following the Dubai economic stimulus package announced in April by His Highness Sheikh Mohammed Bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, the Executive Council adopted a series of initiatives, including freezing private school fees, waiving the 4 per cent late-payment fine for Dubai Land Department transactions and reducing and cancelling certain government fees.

"In an implementation of His Highness Mohammed bin Rashid's guidelines, we have today adopted a series of stimulus initiatives to promote economic growth in Dubai, including the reduction and cancellation of government fees in order to enhance Dubai's attractiveness and reduce the cost of doing business during the Executive Council's meeting in Dubai Emirates Towers," tweeted Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of the Dubai Executive Council.

"During the meeting of the Executive Council, we decided not to increase school fees for all private schools in Dubai for the 2018-2019 academic year, with the aim of relieving the financial burdens on parents," he said, adding that the decision will go into effect immediately.

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Dubai's real estate sector is also set to receive a boost with the Dubai Land Department exempting for 60 days the late-fee penalty on the 4 per cent registration fees on property transactions in the emirate. "The real estate sector is an important component of Dubai's economy and we are providing the best government services to investors and developers," he said.

Sheikh Hamdan noted that the Executive Council has also decided to slash by half the 'market fee' imposed on businesses by the Dubai Municipality, from 5 to 2.5 per cent "in order to maintain the excellent investment environment in Dubai at the regional and international level."

He added: "We have also adopted a series of resolutions aimed at the development of the aviation sector, including the exemption of 19 licences for the activities of aviation industries and aircraft landing. Dubai is today a global aviation industry centre and we need to strengthen our position in this sector."

The incentives are aimed at attracting foreign direct investments, improving local manufacturing and creating better investment environment. In addition, the Department of Finance suggested making paying some governmental fees in installments, which could strengthen the trust between the private sector and the government.

Commenting on the UAE's strategy for economic growth, Sheikh Hamdan had said in April: "Sheikh Mohammed's directives represent a compass for us to continue our efforts to provide a sustainable, flexible economic system that ensures the continuity of an ideal business-friendly environment for our investors."

"We are looking forward to accelerating sustainable economic growth through a package of integrated initiatives aimed at streamlining entrepreneurship, reducing business costs and creating an encouraging and investment-conducive environment aligned with our competitive diversified economic model."

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