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UAE cuts import taxes to stabilise prices
In an effort to alleviate pressure on the UAE’s construction industry, the government on Sunday announced that the customs exemption for imported cement and steel applied to Dubai will be extended to cover the entire Gulf state.
Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of UAE and Ruler of Dubai, instructed authorities across the Emirates to implement the decision with "immediate effect", state news agency Wam reported.
The resolution will be in effect until further notice, Wam said.
A similar decree was issued by Sheikh Mohammed for Dubai last Wednesday as the government looks to stabilise the price of raw materials and rein in inflation in the industry.
The cost of raw materials has risen dramatically in recent weeks, placing huge pressure developers already struggling to finish projects on time and on budget.
The price of cement rose by 25% in the first week of March as oil, needed to manufacture the material, soared to record highs above $110.
Domestic developers are rushing to lock in future contracts at manageable prices as competition from China and other developing nations has forced the price of construction materials to fresh highs.
China recently agreed to lock in contracts for 2009 steel at up to a 65% premium on today’s market price, asserting its intention to continue the nation’s rampant construction and sending a clear signal to rival emerging markets that it is prepared to pay up for priority material supplies.
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