In the News: Dubai Stimulus Packages
Since the Covid-19 outbreak, Dubai has been on top of the market with the launch of four stimulus packages for the year 2020, bringing the total worth of stimulus packages to AED 6.8 billion.
The packages developed by the Dubai Government include 15 initiatives focused on the commercial, retail, external trade, tourism, and energy sectors and aim to support the United Arab Emirates’ economy and business environment.
- The first stimulus package was launched on 12 March 2020, and was worth AED 1.5 billion;
- The second stimulus package was launched on 29 March 2020 and was worth AED 3.3 billion;
- The third stimulus package was launched on 11 July 2020 and was worth AED 1.5 billion; and
- The fourth stimulus package was recently launched and is worth half a million AED.
In the latest package, the government approved a fresh set of free exemptions and rent reductions for some sectors.
The exemptions are valid until end of 2020 and include:
- Advertising permit fees exemptions for all companies registered with the Dubai Municipality for three (3) months;
- Six (6) months license extension for nurseries, clinics and healthcare professionals;
- 50% rent deduction for nurseries from the Knowledge Fund Establishment;
- License renewal exemption for all nurseries in Dubai; and
- Taxi concession fees reduction to enhance liquidity in the sector.
Previous stimulus initiatives will be extended until the end of 2020, based on the following:
- Waiver of all penalties related to government registrations;
- Freezing of all government fees on ticket sales and permits for entertainment and business events;
- Freezing of market fees for all sectors; and
- Freezing of permit fees for the retail sector until the end of November 2020.
It is worth mentioning that the fourth stimulus package incentivizes the sectors that are most affected by the pandemic and the imposed lockdown in the UAE, including health, nurseries and taxi businesses.
Through these incentives, Dubai is playing a major leadership role and proving one more time that it has the back of its citizens and businesses.