Dubai says seven business fees cut by 20%

Dubai’s Department of Economic Development (DED) has cut its business licensing fees by 20 percent following a June announcement that government service fees would be reduced by 20 to 30 percent, Arabian Business has learnt.

The Dubai Government said in June that 22 of its service fees would be reduced by up to 30 percent in order to improve the emirate’s international competitiveness and to attract more global investment.

The DED said on Thursday that it has chosen to lower seven of its fees by only 20 percent since its fees were already lower than those of other government agencies.

“It was deemed that a reduction of more than 20 percent would in fact not be cost effective for DED with this reduction merely covering the costs for such transactions,” a spokesperson said.

Employee costs, the number of employees required per transaction and the time taken per transaction meant a reduction of more than 20 percent would not have been sustainable, the department said.

The seven fees are: applying for a new professional license; renewal of a professional license; applying for a new commercial license; renewal of a commercial license; applying for large promotional campaign licenses; applying for medium promotional campaign licenses; and applying for small promotional campaign licenses.

The 20 percent reduction only relates to DED charges and not other costs associated with the seven fees.

A six-year property boom, rising stock markets and soaring oil prices saw Dubai going from being a low cost destination to becoming one of the most expensive cities in the world.

In addition to cutting business licensing fees, Dubai has said it would freeze all government charges.

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