Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of the Executive Council of Dubai, has presented an additional stimulus package worth $85 million (AED315 million), to support the economic and business sector in the region.
The latest package increases the value of business benefits introduced by the emirate’s government to $1.9 billion (AED7.1 billion).
Under the directives of @HHShkMohd, @HamdanMohammed launches an economic stimulus package worth AED315 million. The new package raises the value of business incentives introduced by the emirate’s government to AED7.1 billion.https://t.co/UdO46q7g8l pic.twitter.com/8HF4ENErmC
— Dubai Media Office (@DXBMediaOffice) January 6, 2021
This new stimulus package was based on the recommendations of the Dubai Economy Support Committee, chaired by H.H. Sheikh Ahmed bin Saeed Al Maktoum, Second Deputy Chairman of The Executive Council. The $85 million (AED315 million) package extends the validity of some of the initiatives introduced in the previous stimulus packages for another six months, starting from January 2021 to June 2021.
He explained that the government’s efforts to curb the impact of the global crisis, accelerate the pace of economic sector recovery and provide required measures to ensure business continuity, are in line with the instructions of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE, and ruler of the Emirate of Dubai.
“The Dubai government continues to assess the current global economic situation and the various developments amid these exceptional circumstances to develop practical strategies that will enable us to efficiently mitigate the repercussions of the global pandemic on the economy. Despite the challenges imposed by the pandemic worldwide, our economy is steadily recovering. We have the capabilities and resources that enable us to achieve economic excellence and accelerate the recovery of our various business sectors. We are confident the next phase will bring new opportunities for entrepreneurs and investors.”
Benefits of the new stimulus package
The approved initiatives include exempting commercial establishments and hotels that did not benefit from the reduction in previous packages launched in 2020 from the market fees one time during 2021. Sheikh Hamdan directed that 50 percent of the hotel sales fee as well as the Tourism Dirham fee be refunded to non-beach hotels and their restaurants.
The new package also extends the freeze on fees charged for ticket purchases, granting licenses and other government fees levied on entertainment and business activities. The commercial licenses could also be extended as per the approved initiatives, without mandatory renewal of lease contracts.
Moreover, the exemption from the fees charged for postponement and cancellation of recreational and sports events and activities, including conferences and exhibitions, has been extended.
The package also extends the cancellation of the 25 percent down payment provision for accepting installments of licensing fees and license renewal monthly. Furthermore, nurseries leasing land lots from the Knowledge Fund Establishment will continue to benefit from the 50 percent reduction in land rent.