Financial Stimulus For Freezone Companies
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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