Financial Stimulus For Freezone Companies
The economic stimulus package has been initiated by the Dubai Free Zones Council to enhance the UAE’s efforts to minimize the impact of the COVID-19 to support the economy.
FIVE KEY ELEMENTS:
- Postponement of rent payments
- Facilitating instalments for payments
- Refunding security deposits and guarantees
- Cancellation of fines for both companies and individuals
- Permitting temporary contracts that allow the free movement of labour between companies operating in the free zones for the rest of the year
- DMCC (Dubai Multi Commodities Centre)
- Introduction of ‘’Business Support Package’’ to help the businesses to navigate through the current market conditions.
- 80% reduction on the total company set up fee if shareholders are residents of JLT area.
- Upto 50% reduction on the total company set up fee if shareholders are residents of other areas.
- Flexible payment options for new DMCC Business Centre tenants.
- Digitalized process enabling the formation of companies at DMCC from anywhere in the world.
- 30% discount on the license renewal.
- 100% waiver of penalties due to late renewal of license.
- DIFC (Dubai International Financial Centre) Free zone
- Introduction of ‘’Business Stimulus Initiative’’ for the upcoming three months for both corporate and retail companies.
- Waiver of annual licensing fees for new registrations.
- 10% discount on renewal fees for existing companies.
- Reduction on property transfer fees from 5% to 4% for any sale of property that took place within the said three months period.
- Facilitating free movement of labour in and out of the DIFC to other free zones.
- JAFZA (Jebel Ali Free Zone)
- Introduction of ‘’Flexible Payment Plan’’.
- Enabling business to defer their rental payments for two months and pay with easier instalments effective from 01st April 2020.
- This plan is also applicable for companies operating in NIP (National Industries Park) and DAZ (Dubai Auto Zone).
- SHAMS (Sharjah Media City) Free Zone
Starting from 22nd March till 23rd April 2020
- 20% discount on 2-years Visa package.
- 25% discount on 3-years Visa package.
- 35% discount on 5-years Visa package.
- RAKEZ (Ras Al Khaimah Economic Zone)
- Introduction of ‘’SME Client Support Boosters’’ offering various incentives that aim to ensure business continuity during the current global situation.
- 15% discount on renewal.
- 100% waiver on late renewal penalties.
- Flexible instalment options.
- AFZ (Ajman Free Zone)
- Introduction of package of economic incentives.
- These incentives include reducing and waiver of certain fines / fees and also offering easy instalment payment plan.
- For new company set up, AFZ will cover the cost of the E-Channel Warranty AED 5,000.
- IFZA (International Free Zone Authority)
- New company set up fee with single visa is reduced from AED 15,700 to AED 11,500.
- Waiver of E-channel deposit amounting to AED 5,000.
- CBUAE (Central Bank of the UAE)
- Increased ‘’Targeted Economic Support Scheme’’ amount from AED 100 billion to AED 256 billion to contain the repercussions of the COVID-19 pandemic.
- Reduction of the amount of capital that banks have to hold for their loans to SME’s by 15-25%.
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