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Fri 29 May 2009 11:51 AM

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Dubai reduces business fees to stimulate economy

Government to reduce business licensing fees by up to 30 percent and freeze other charges.

The Dubai government is to reduce business licensing fees by up to 30 percent and freeze other government charges in a bid to stimulate economic activity, the state news agency said.

WAM said late on Thursday Dubai ruler and UAE vice president Sheikh Mohammed bin Rashid issued the decree to strengthen "continued government support for the investment environment".

"This includes fees levied by the government for administrative or economic services even if the costs of these services are higher than the market rate," it said.

"The government departments will also strive to provide all facilities to those who pay the fees, by way of receiving some of those fees on instalments."

Fees will be cut by 20 to 30 percent for a range of activities including trade and professional licences, property ownership certificates, termination of tenancy contracts for ownership, transferring buildings into hotels or serviced apartments and other alterations to commercial buildings.

Dubai's economy has been hit badly by the global downturn, with many construction projects held up. The emirate of the United Arab Emirates has outstanding debt of around $80 billion. (Reuters)

the councillor 10 years ago

a good move to try and retain Dubai standing in international trade also...thought us not this a job for the Finance minister to declare ? regardless a bold move by HH and keeps Dubai in tune with the current economic climate....

Thomas Zachariah 10 years ago

That is indeed a good moveandwwill help many who are sstruggling due to reduced busness turnovers. Hope that the same applies to the freezones as well, since they alsso face difficult times.

Shaun Ahmad BA (Hons) FCCA 10 years ago

I have lived in UAE for 5 years, own a property and other assets within the UAE. My children go to school here and I see this country as my home. The excellent services of Fire, ambulance and Police collectively saved my child’s life recently, and I owe a great debt of gratitude towards this country. This country is well set up and 99% things work very well. As an CFO - I work for others and I have helped create a sustainable private sector jobs within the UAE. But I work for others and this has limitations. As soon the proposed changes happen, I will launch a new a UAE venture with the target to create a sustainable private sector jobs of 50,000+ within the next 5 years. God willing, the UAE will win.

Pradeep Naik 10 years ago

What is the use of reducing any fees or changing policies. Gone with the wind all those existing companies. Find a better solution to finish the incomplete projects, & those empty buildings, make sure to empty shopping malls & reseve the funds for many nationals working in various Govt depts.& Banks.

karpakarajan.v.chettiar 10 years ago

The earnestness of the ruler of the emirate should be appreciated. Those businesses and individuals who benefitted by the past economic boom of the country, triggered by the policies and decisions of the ruler should support the ruler and contribute towards stimulating the economy. Prayers and best wishes.

Yacoob 10 years ago

A right move to strengthen the Back bone of Dubai to maintain its shining role as The Trading Hub of Middle East

fk 10 years ago

cutting of prices is a good move for Dubai overall. What needs attention of Dubai government is the EXCESSIVE MAINTENANCE FEES for already constructed apartments and buildings charged by companies like EMAAR. These are very bad for the investment climate and future ownership of property in Dubai.

Madhulal Bhatia 10 years ago

It is really nice to read that Dubai Government has taken decision to reduce the fees to stimulate economy. Hatch off to HH Sheikh Mohammed bin Rashid who is always endeavouring to take the economy forward. These steps are must to boost the economy and to get confidence of the business community in Dubai. In past also HH Sheikh Mohammed bin Rashid had taken when business was very down and business community and people were suffering. There are many other areas where the attenion of HH Sheikh Mohammed bin Rashid is required. The general public is too much squezed due to higher rents and charges. I am sure that HH Sheikh Mohammed bin Rashid will definately look into the matter and do something for the citizen of this great country. Thanks and Good luck.

Serge 10 years ago

I am not so sure this will cotribute in any way to encouraging foreign businesses in establishing or re-establishing themselves in Dubai. Promises have been made before and were not kept. Our biggest disappointment was that having decided to establish an office under TECOm we expected the rents and accompanying charges to remain stable as promised, for 2 years and wrote our business plan accordingly having confirmed the fact with the TECOM executives of the time. However, the rents were increased 6 months after we moved in by a hefty 20%! New establishments cannot sustain such rapid and shattering changes. What was more annoying was that our neighbour had signed his lease one month before us and his rent was maintained for 2 years. Such behaviour and mismanagement does not instil confidence. Needless to say as soon as the opportunity arose, we moved and the present promises will in no way encourage us to move back.

Punky Brewster 10 years ago

Hope this stimulates the business environment in DXB. Everyone was suffering with the ever-increasing Govt. charges, but this should help a lot of smaller businesses to survive in this market. With the BOLD move by Shkh Mohammed, I hope the Federal Govt is taking notice of this move!!