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Discuss this article (10 Comments)Dubai gov't to review service fees for businesses
by This email address is being protected from spam bots, you need Javascript enabled to view it on Tuesday, 21 April 2009
zoomFEES REVIEW: Businesses could see service fees in Dubai revised on the back of a government review.
The Dubai government is reviewing its service fees with regard to their impact on business in the emirate, news agency WAM reported on Monday.
Plans to study government service fees were discussed during a meeting of the Dubai Executive Council, chaired by Sheikh Maktoum Bin Mohammad Bin Rashid Al Maktoum, Deputy Ruler of Dubai and First Deputy Chairman of the council, according to WAM.
The discussions come as rents for office space drop, after years of rises , in the wake of waning demand, as a result of the global economic crisis.
The meeting also discussed means to support small businesses in line with Dubai plan’s to improve the living conditions of Emiratis and expatriates.
The council sees the small business sector as an important part of enhancing Dubai's “competitiveness at the global stage," it said.
The council also reviewed a performance appraisal of the Dubai Courts, which looked at ways to speed up the legal process.
READERS' COMMENTS
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Right Stimulus for Business
Posted by Synergiser, Dubai, UAE on Wednesday 22 April 2009 at 19:54 UAE time
Its high time Govt put words into action so its back to Dubai of old times where dreams did come true for most. With positive steps taken the negative aspect will be swept aside. Silver lining is what we all seek in a City we love and call Dubai....
Posted by Synergiser, Dubai, UAE on Wednesday 22 April 2009 at 19:54 UAE time
Its high time Govt put words into action so its back to Dubai of old times where dreams did come true for most. With positive steps taken the negative aspect will be swept aside. Silver lining is what we all seek in a City we love and call Dubai....
"Revision" means reducing the fees?
Posted by Sharqco, Dubai, UAE on Wednesday 22 April 2009 at 12:23 UAE time
I hope this revision would mean REDUCING the fees as the opposite has happened recently:
Renewing our company labour card last week, we were shocked at a new 5000dhs "insurance fee" for the Labour dept
i hope this is not just a means for each dept to raise more money from businesses.
Posted by Sharqco, Dubai, UAE on Wednesday 22 April 2009 at 12:23 UAE time
I hope this revision would mean REDUCING the fees as the opposite has happened recently:
Renewing our company labour card last week, we were shocked at a new 5000dhs "insurance fee" for the Labour dept
i hope this is not just a means for each dept to raise more money from businesses.
business charter
Posted by paul, Dubai, UAE on Wednesday 22 April 2009 at 11:21 UAE time
As an owner of a freezone business, these would be my recommendations:
1. Reduce rents - rents and service charges have been hiked over the past couple of years, which was justified as reflecting market conditions. Well the market has changed, so these rents need to reflect this quickly before more companies close up and more jobs go, leading to fewer Dubai residents and further decline in the economy. The market here cannot sustain rents that are higher than London now! 200 AED/sqft (inc service charge)
2. Flexible licenses - free zone licenses are quite restrictive, with additional charges for adding business sectors to these. One way to maintain govt revenue but help companies would be by allowing more business areas for the same license fee.
3. Improved internet speeds and prices - need to roll this out not just to business but to consumers. Internet is still a growth industry worldwide, some places in the far east are putting superfast fibre optic connections to most homes, Europe has cheap widely available broadband, as does the US. The UAE desperately needs to update its business infrastructure, hardly any companies here have proper web sites that allow you to buy goods and services and pay for them online. Most developed countries this has been the norm for nearly 10 years.
The UAE would be perfectly placed to attract new high tech businesses now that rental costs are falling, but poor infrastructure and high costs for service means low internet take up here, and most companies operate like it is still the 1980s, with fax machines etc.
I hope the UAE will modernise its outlook before it is too late. There is an opportunity now, I hope they are not too busy looking back at their broken real estate dreams to look forward to helping long term sustainable business develop.
Posted by paul, Dubai, UAE on Wednesday 22 April 2009 at 11:21 UAE time
As an owner of a freezone business, these would be my recommendations:
1. Reduce rents - rents and service charges have been hiked over the past couple of years, which was justified as reflecting market conditions. Well the market has changed, so these rents need to reflect this quickly before more companies close up and more jobs go, leading to fewer Dubai residents and further decline in the economy. The market here cannot sustain rents that are higher than London now! 200 AED/sqft (inc service charge)
2. Flexible licenses - free zone licenses are quite restrictive, with additional charges for adding business sectors to these. One way to maintain govt revenue but help companies would be by allowing more business areas for the same license fee.
3. Improved internet speeds and prices - need to roll this out not just to business but to consumers. Internet is still a growth industry worldwide, some places in the far east are putting superfast fibre optic connections to most homes, Europe has cheap widely available broadband, as does the US. The UAE desperately needs to update its business infrastructure, hardly any companies here have proper web sites that allow you to buy goods and services and pay for them online. Most developed countries this has been the norm for nearly 10 years.
The UAE would be perfectly placed to attract new high tech businesses now that rental costs are falling, but poor infrastructure and high costs for service means low internet take up here, and most companies operate like it is still the 1980s, with fax machines etc.
I hope the UAE will modernise its outlook before it is too late. There is an opportunity now, I hope they are not too busy looking back at their broken real estate dreams to look forward to helping long term sustainable business develop.
Little too late for SOME
Posted by Closed Business, Dubai, UAE on Wednesday 22 April 2009 at 09:01 UAE time
Mmm, cost of licenses, permissions, fees, another fees and rental cost me to close my business. Good for business that are still in Biz... Small businesses are hurt the most with ridiculous costs...
Posted by Closed Business, Dubai, UAE on Wednesday 22 April 2009 at 09:01 UAE time
Mmm, cost of licenses, permissions, fees, another fees and rental cost me to close my business. Good for business that are still in Biz... Small businesses are hurt the most with ridiculous costs...
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