The executive order issued by the Dubai Crown Prince has extended a three-year freeze on fees charged in the emirate for certain government services until 2023.
Sheikh Hamdan bin Mohammed, the Crown Prince and Chairman of The Executive Council of Dubai declared the move under directives from Sheikh Mohammed bin Rashid, the Vice President and Ruler of Dubai. The new extension of the freeze is expected to enhance the emirate’s competitiveness and improve the confidence of businesses.
According to reports, the current move “seeks to strengthen Dubai’s ability to adapt to changing market realities, accelerate the pace of recovery and boost sustainable development.”
Meanwhile, commenting on the extension Sheikh Hamdan stated that “the move will increase the resilience of Dubai’s businesses and eases any financial challenges they may have due to the prevailing situation.”
In an aim to boost Dubai’s competitiveness, the leadership first halted all fee increases for certain government services in 2018. Last year, the emirate has also launched several support measures to help the economy emerge stronger from the crisis brought by the coronavirus pandemic. The commercial and tourism hub of the Middle East has also provided stimulus packages worth $1.85 billion to reduce the impact of the pandemic.
Apart from the extension of the halt, the government said no new fees will be imposed, except in the case of the introduction of new vital services.
As per official projections published last year, Dubai’s economy is expected to grow 4 percent in 2021 due to its effective response to COVID-19. The economy has already started witnessing green shoots of recovery as operating conditions for business improve due to the emirate’s vaccine campaign.
Dubai’s non-oil private sector economy edged up in February, with the seasonally adjusted IHS Markit Dubai Purchasing Managers’ Index rising to 50.9 in last month from 50.6 in January. A reading above 50 indicates economic expansion, while below points to contraction.