The Dubai South Free Zone has launched what’s billed as an economic stimulus package to mitigate the effects of COVID-19.
The announcement is said to be part of Dubai South Free Zone’s commitment to foster a business-friendly environment and meet the needs of its customers.
In addition to free zone flexible payment plans with instalment schemes, waivers of penalties on late renewals and cancellations of contracts and licenses, customers will be able to benefit from a 20% reduction on license fees renewals. First year license fees for new customers in the aviation, logistics and e-commerce sectors and the Business Park will be waived as well.
“Dubai South is proud to be part of the emirate’s overall value proposition and we are keen to enhance its competitiveness and attractiveness to ensure it can attract more domestic and foreign direct investment. Our current customers are our most important asset; therefore, our focus is to provide them with all our support in these challenging times and beyond, so that they will be able to support the national economy and contribute to GDP growth,” said Sheikh Ahmed bin Saeed Al Maktoum, chairman of Dubai Civil Aviation Authority and chairman and chief executive of Emirates Airline and Group, and also chairman of Dubai Airports.
He added, “The stimulus package is part of our mandate to exert our tireless efforts and align them with the initiatives and decisions of our government, so that Dubai will remain a sought-after business destination and maintain its prominent position on all global performance indicators.”
In addition, customers who operate in the Business Park Free Zone will have the opportunity to apply for a lease deferral request of up to six months, which will be granted on a case-by-case basis. Dubai South Business Centre customers renewing their contracts between now and October 2020 will also receive a reduction of up to 25% on their renewal fees, as well as the flexibility to settle annual rental fees in up to four installments. Individuals and companies looking to establish a new business will be granted rental fee reductions of up to 25%.
Dubai Aviation City Corporation & Dubai South Executive Chairman Khalifa Al Zaffin commented, “This incentive package complements the measures announced by the Government of Dubai and its ongoing efforts to reduce the costs of doing business in the emirate and help enhance corporate liquidity. The support will enable companies to maintain their resources and employees and to be fully prepared to continue their operations, especially as the lockdown is being gradually lifted, paving the path towards gradual business cycle normality.”