By Gavin Gibbon
Measures include a 20% reduction in license fees renewals and various penalty waivers
Dubai South Free Zone has announced a series of economic stimulus incentives to cushion the financial impact of Covid-19 on individuals and companies.
Measures include introducing flexible payment plans with instalment schemes, as well as waivers of penalties on late renewals and cancellations of contracts and licences.
Customers operating in the free zone will also benefit from a 20 percent reduction on licence fees renewals, while first year licence fees for new customers in the aviation, logistics and e-commerce sectors and the business park will be waived.
Sheikh Ahmed bin Saeed Al Maktoum, chairman of Dubai Civil Aviation Authority, said: "Our current customers are our most important asset; therefore, our focus is to provide them with all our support in these challenging times and beyond, so that they will be able to support the national economy and contribute to GDP growth.”
In addition, customers who operate in the Business Park Free Zone will have the opportunity to apply for a lease deferral request of up to six months, which will be granted on a case-by-case basis.
Meanwhile, Dubai South Business Centre customers renewing their contracts between now and October 2020 will receive a reduction of up to 25 percent on renewal fees as well as the flexibility to settle annual rental fees in up to four instalments.
Furthermore, individuals and companies looking to establish a new business will be granted rental fee reductions of up to 25 percent.
Khalifa Al Zaffin, executive chairman of Dubai Aviation City Corporation and Dubai South, said: "The support will enable companies to maintain their resources and employees and to be fully prepared to continue their operations, especially as the lockdown is being gradually lifted, paving the path towards gradual business cycle normality.”
In mid-March, the government of Dubai unveiled an AED1.5 billion ($408.4m) economic stimulus package to support companies and the business sector. The initiative aimed to enhance liquidity and reduce the impact of the current global economic situation following the outbreak and worldwide spread of Covid-19.