Volume # 06 | June, 2018

UAE Freezones Biz News Updates

Dubai Cancels Business Fines In 2018 As It Looks To Boost Competitiveness

Skyline of Dubai.

Dubai is waiving fines imposed on companies operating in the emirate and will facilitate license renewals until the end of 2018, an act that comes as part of a broader push in the U.A.E. to boost economic competitiveness. That should be a welcome development for companies that failed to adequately prepare for the introduction of the value added tax at the beginning of 2018, which includes penalties for non-compliance.

Dubai revealed the move this week in a decree issued by the Department of Economic Development (DED). A statement posted by the state-run Emirates News Agency (WAM) said the decree will reduce the cost of doing business in Dubai and spur inward investment.

“This decree is a positive step in promoting economic growth and consolidating Dubai’s position as one of the important commercial and economic centres internationally,” said Omar Bushahab, CEO of DED’s business registration and licensing division, in a statement. “It also helps to remove concerns among investors and entrepreneurs looking to expand their business.”

The DED is pursuing several initiatives currently designed to stimulate competitiveness and to signal to foreign investors and companies that the emirate is trying to adopt a business friendly stance. The initiatives relate to exempting businesses from fines and trade violations, reducing operational cost in the retail sector, supporting local production and procurement, and attracting startups to Dubai.

The decree follows other similar moves in the U.A.E. recently. Earlier in May 2018, the Gulf nation announced it plans to grant long-term visas to investors and professionals in select fields, and will allow 100% foreign ownership by the end of the year.

“The U.A.E. will remain a global incubator for exceptional talents and a permanent destination for international investors,” said H.H. Sheikh Mohammed bin Rashid Al Maktoum, in a statement at the time.

The move also comes as the U.A.E. and other GCC countries are projected to grow at a slower pace this year. According to IMF, economic growth is projected at a modest 2%, down from an earlier forecast of 3.4%. However, the growth is expected to pick up in 2019 owing to higher oil prices and improving finances of the GCC countries.

May 30, 2018

Free Zones Of UAE

Volume # 06 | June, 2018

UAE Freezones Biz News Updates

Courtesy Forbes Middle East Staff

Emirates Of UAE

Business

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