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Dubai Companies set to resume Business Operations with the Announcement of JAFZA Incentives
  • Newsletter, U.A.E

Dubai Companies set to resume Business Operations with the Announcement of JAFZA Incentives

Economic activities in Dubai and throughout the UAE appear to be returning to near normal levels.  As one of the UAE’s largest trading hubs, JAFZA (the Jebel Ali Free Zone) announced the introduction of numerous incentives to support consumers and promote new Dubai company formation and JAFZA company formation.  As a result, many companies will be able to resume their operations and have renewed confidence in this significantly different post-pandemic economic landscape.

According to a recent JAFZA announcement, the easing up of COVID-19 related restrictions in the UAE will enable current and new customers to short-term lease warehouse space without having to pay for custom duties or VAT.  Warehouses ranging from 300 to 15,000 sqm., including FREE electricity and water, will be available.  JAFZA also introduced more flexible terms such as monthly rental payments for new tenants and offered current tenants deferred payments when leasing warehouse space.

The extensive range of a more targeted focus and support also includes the addition of cost-effective shipping services that have enhanced accessibility, increased cost savings, and speedier services.  Other solutions for improved in-house logistics include:

  • 24/7 lease issuance
  • facilitating product movement and trade efficiency
  • fast-track EHS approvals that have been designed to help companies manage the cost of supplies


With times being as challenging as they are, highly competitive business solutions are required in order to see businesses resume their operations and be more profitable in the long term. The new set of economic incentives are an addition to the 70% reduced

Fees for the licensing, registration and administrative fee/levies that were announced in March, before the lockdown began due to the pandemic. Not just UAE, but the pandemic has had far-reaching effects globally.

According to DP World, UAE Region CEO and current managing director Mohammed Al Muallem (he is also JAFZA’s chief executive), customized post-pandemic solutions for the trade sector are being developed for customers. These solutions will enable them to pay less for increased value-added services and support straight across the board.  He went on to say that newer businesses as well as existing companies that we are promoting a back-to-business, investor-friendly environment.

By developing this environment around a market’s emerging needs, it will promote a stronger economic climate for improved business growth in all sectors.  As it currently stands, JAFZA accounts for nearly 24% of the total direct foreign investments and the employment of over 135,000 individuals.  As a result, JAFZA had generated $93 billion in trade as of the end of 2018.  As of this past March (2020), the free zone has reduced all business-related fees by as much as 70% for those businesses operating within it.

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Family Businesses in the Gulf Cooperation Council preparing for Post-Pandemic Growth
  • Newsletter

Family Businesses in the Gulf Cooperation Council preparing for Post-Pandemic Growth

The GCC or Gulf Cooperation Council is the economic and political alliance of 6 countries – Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the UAE, the economies of which were shocked by the advent of the COVID-19 pandemic during the aftermath of lower oil prices.  Family businesses in the GCC were already in dire financial straits as they were dealing with high leverage, lower profits, and restricted liquidity. Thus, combination of the two economic hits has severely stressed all 6 country’s economies.

Fortunately for most of these businesses, they have taken action and implemented measures to help counteract the economic crisis with new company formation in Saudi Arabia and new company formation in UAE.  However, these family businesses are now faced with adapting to a dramatically different post-pandemic landscape.  Most of them are retaining the existing staff that is important for long term success of the business apart from coordinating actions with suppliers and main clients to enhance business continuity.  It is our belief that these businesses must adopt the following 4 strategies in order to attain a better position over the long term:

Digitize core operations and invest in a “stay-at-home” economy – prior to the pandemic, shopping and working online was on the rise.  Now it will likely be the new of conducting business for businesses and consumers alike.  Therefore, family owned companies in the financial and retail sectors will have to adopt their business models and core operations to this newer, “stay-at-home” economy.

Diversify their financial portfolios – with sharper financial crises and shortened economic cycles becoming more frequent and more globally based, the traditional focus of risk management is failing to protect their financial portfolios.  Consequently, family businesses must pursue a more encompassing approach to risk when managing their portfolios.  They should incorporate cash flow threat assessments with the valuation drivers of demand and price.

Pursue opportunities in the private sector – as a result of decreased oil revenues, GCC government’s deficits are growing.  Consequently, they will need these family businesses to drive their economy more than ever.  It’s important for these businesses to take on more PSP (private sector participation) projects such as opportunities in the infrastructure by developing partnerships between multi-family companies in order to combine their talents and minimize risk.

Take advantage of more local opportunities – by closing their national borders, GCC businesses were forced to re-examine their supply chains and increase their localization efforts.  By investing in local production and new chains of supply, businesses can protect themselves from supply chain disruptions while at the same time reducing their reliance on imports.  Given the stable performance of the manufacturing sector during Saudi Arabian oil cycles, increased opportunities in this sector will be more attractive.

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Ready-to-Eat Food Market in Singapore Primed for Growth
  • Newsletter, Singapore

Ready-to-Eat Food Market in Singapore Primed for Growth

For the forecast period of 2019-24, it is estimated that Singapore’s ready-to-eat food (RTE) market will achieve a CAGR (Compound Annual Growth Rate) of 2.6%. Due to the increased exposure to numerous cultures, Singapore’s citizens are experimenting with new and different foods. This has given RTE foods an opportunity for growth in conjunction with this recent culinary trend of experimenting with people’s diets.

Consequently, the country’s food supply chain is undergoing continual organization and has witnessed an increase in product circulation across applicable retail channels. As a result, this has led to increased Ready-To-Eat food sales throughout the consumer marketplace. Furthermore, regulatory authorities have introduced initiatives that are driving the food market where this is concerned which includes checks on quality and safety standards. This includes efforts on behalf of the Singapore Health Promotional Board to increase awareness of fish products and frozen foods.


Industry Analysis

One of the major Asian trade destinations, Singapore is seeing the growing prevalence with an increase in the use of instant foods. Recent analytical statistics show the RTE foods are gaining increased popularity based on convenience among Singapore’s dual income families. This means that these busy families prefer the convenience of RTE foods due to the constraints of their daily lives and schedules. RTE foods were developed to save people time in the kitchen while reducing the costs related to spoilage. Due to increased family incomes, individuals are now purchasing prepared foods regardless of the price.

Additionally, as the number of dual income families continues to increase in Singapore, more females are entering what used to be a male-dominated workforce. According to statistics presented by the World Bank labor force, the percentage of women in the job market has increased from 43.5% to 45.13% during the period of 2010 to 2018. As more females enter the workforce, they will be spending less time in their kitchens. So, RTE food sales should continue to increase during the forecast period of 2019-24. During the pandemic, interest in self-sufficient soared and the impetus on quick instant foods has seen a spike. There has been an increase in the RTE sale across the consumers along with the ease of product circulation in retail channels.


Fastest Growth Segment

Singapore has emerged as one of Asia’s major trade destinations and continues at an exponential pace. As people’s lifestyles have become increasingly hectic in recent years, the prevalence of instant foods has grown in similar fashion. Since RTE foods are so convenient, fewer Singaporeans are using their kitchens. This has not only led to an increase in the number of brands that are producing RTE noodles, it is the fastest growing food sector in the marketplace. Some of the leading brands include Nestle Maggie and Nissin foods that are targeting the Singapore market that is evolving with changing consumption patterns. Other market members are now being more innovative with their product portfolios as a result, thereby causing a significant shift in the competitive landscape.

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Vietnam’s National Assembly ratifies EVFTA and EVIPA
  • Newsletter

Vietnam’s National Assembly ratifies EVFTA and EVIPA

On June 8th, Vietnam’s National Assembly ratified two important economic agreements, namely the EVFTA (European Union-Vietnam Free Trade and EVIPA (European Union-Vietnam Investment Protection Agreements.  Both received unanimous approval with nearly 95% of the country’s lawmakers voting in favor of the EVFTA and nearly 96% voting in favor of the EVIPA.  These developments followed European Parliament’s ratification of the FTA in February.

About the EVFTA

The EVFTA paved the way for increased trade between Vietnam and the European Union and was signed into law on the last day of June.  This aggressive pact provides for the elimination of nearly 99% of custom duties between the two governments.  In so many words, the MPI (Ministry of Planning and Investment) stated that the agreement would increase the country’s GDP by nearly 5% and result in nearly a 43% increase in exports to the EU by 2025.

Furthermore, the European Commission is estimating a $29.5 billion increase in their GDP by 2035.  The agreement calls for the elimination of 65% of all EU export duties while the remaining 35% will be eliminated over the next 10 years.  On the other side of the coin, the agreement calls for the elimination of 71% of the duties on exports to the EU from Vietnam with the remaining 29% being eliminated over the next 7 years.  As a new generation agreement, the EVFTA contains important provisions for:

  • investment liberalization
  • IP or intellectual property rights
  • sustainable developments


Additionally, the agreement will include the implementation of standards for the ILO or International Labor Organization and the UN’s Convention for Climate Change.  By the end of 2018, EU investors were responsible for investing nearly $24 billion in over 2,000 Vietnamese projects.  On a regional scale among ASEAN members, Vietnam is the 2nd most important trading partner to the EU, thereby surpassing Indonesia and Thailand.

Industry Expansion Projections

At its core, the EVFTA removes restrictive non-tariff and tariff barriers for the primary imports from each government over the ensuing 10-year period.  The primary export industries that will benefit include:

  • Electronic products – the EVFTA will provide the country with a chance to take a lead in electronic production such as smartphones and electronic manufacturing.
  • Pharmaceuticals– This sector is attractive to the investors in EU as with the new FTA, more than half of the imports by EU will be duty-free immediately and the rest will become duty free after 7 years. Pharmaceutical companies of EU will be allowed to import authorized medicines to be sold in Vietnam.
  • Textiles and Footwear– FTA could significantly increase the volume of trade in textiles and footwear as it is the major export to the EU. In 2018, this export sector contributed nearly US$9 billion.


Recent changes to the EU, such as the exit of the UK or Brexit, could no doubt impact the importance and outcome of the EVFTA.  For now, the FTA will go into effect in the UK through year’s end.  However, it may be extended for 2 more years based on the agreement between the EU and the UK.

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US Investment Opportunities increasing in Malaysia, Singapore, and Vietnam Special Economic Zones
  • Newsletter

US Investment Opportunities increasing in Malaysia, Singapore, and Vietnam Special Economic Zones

In an effort to attract more US investors, the Association of Southeast Asian Nations, or ASEAN as it is more commonly referred to, is now promoting Special Economic Zones in order to become a more powerful trading bloc of member states.  These zones are comprised of industrial parks, innovation areas, special export processing areas, and technology parks.  Since the ASEAN Economic Community or AEC was established in 2015, they have become increasingly more important to the overall economic picture.

Revenue Statistics

As of 2018, the total revenue from two-way trading between the US and ASEAN has reached $260 billion (USD).  Furthermore, the US is now the 4th largest trading partner in the ASEAN.  There are 3 key points that have come out of this:

  • First, US investors have been presented with new investment opportunities in the ASEAN region, especially in countries such as Malaysia, Singapore, and Vietnam. 
  • Second, the bloc’s SEZ’s are facilitating more trade between the US and ASEAN through a range of fiscal and non-fiscal incentives. 
  • Third, Total trade between the two has exceeded the $260 billion (USD) mark reached in 2018. This includes ASEAN exports of commodities, electronics, machinery, and textiles.

While the top ASEAN export categories included electronics, footwear, garments and textiles, and machinery, the largest single exporters included:

  • Vietnam – $49.2 billion (USD)
  • Malaysia – $39.4 billion (USD)
  • Singapore – $27 billion (USD)

ASEAN members agree that US investors who want to take advantage of the SEZ’s should try to be more understanding of those factors that can affect their business.

In Thailand, the government commenced the establishment of 10 SEZs in border areas with Cambodia, Laos, Myanmar and Malaysia with the aim to increase border trade between the countries that was valued at US$32 billion in 2018. While the export to US totaled US$30 billion in 2019, which accounted for exports of rubber tires, semi-conductors, precious stones and computer chips.

Another ASEAN member country, Philippines has 12 SEZs and over 300 economic zones while it exported computer hardware and electronic things amounting to US$12 billion to USA. With bustling trade between US and ASEAN countries, most countries including Indonesia, Myanmar and Cambodia have started investing in manufacturing for export to the western countries, over the years.

Opportunities increasing in Malaysia, Singapore, and Vietnam

While there are numerous countries in the ASEAN bloc, US investors are paying special attention to the countries of Malaysia, Singapore, and Vietnam.  Here’s why:

Malaysia – the 5 investment corridors in Malaysia ship $600 million in cell phones, $4 billion in computer chips, and $890 million in semi-conductors annually.  As of 2018, these 5 corridors were responsible for the creation of nearly 2 million jobs and increasing investments in new company formation in Malaysia worth $188 billion.  In addition to this, the ECER (East Coast Economic Region) is anticipating the addition of 120,000 new jobs and investments reaching $16 billion by 2025.

Singapore – the nation is too small to establish SEZ’s of its own despite having the largest port in shipping volume in the world.  Consequently, it has partnered with the Malaysian Government to form the Batam Export Processing Zone and the Iskander SEZ.  Both have been successful where new company formation in Singapore is concerned.  As a result, the total trade between the US and Singapore reached $57 billion last year.

Vietnam – in 2019, Vietnam ranked 11th in total trade dollars ($25 billion+) with the US with the top exports being $3 billion in cell phones, $1 billion in furniture, and $1.1 billion in garments and textiles.  New company formation in Vietnam has included the addition of more export processing facilities and the possible creation of SEZ’s along Vietnam’s lengthy eastern coast. In so doing, they will compete for additional foreign investments with South China.

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Dubai International Financial Centre launches first Blockchain Data Sharing Platform
  • Newsletter, U.A.E

Dubai International Financial Centre launches first Blockchain Data Sharing Platform

The data sharing technology known as “Blockchain” has been used in the creation of cryptocurrencies such as Bitcoin.  Up until recently, it has been used for electronic transactions such as money transfers, payment processors, retail loyalty rewards programs, and more.  In the simplest of terms, it is an ingenious method for passing information from Point A to Point B by using blocks of data that can easily be verified by thousands, if not millions of computers throughout the internet.

DIFC Collaborates with Mashreq Bank

However, as of this past March (2020), licensed businesses and corporations are now able to accelerate their compliance with KYC (Know Your Customer) requirements thanks to the use of the Blockchain data sharing platform.  The Swedish corporation Norbloc built the platform, which the Dubai International Financial Centre launched in collaboration with the Mashreq Bank.  As a result, UAE banks and large corporations can use this platform to transfer authenticated and validated company data in order to share it instantly with major financial institutions.

Faster Access to Open Bank Accounts

The DIFC is responsible for generating the primary KYC record during corporate license application process.  One of the primary benefits is that banks will no longer need to spend their resources or time verifying their customer’s identity as this enables UAE companies that are registered with Blockchain to open bank accounts immediately.  A consortium of banks including the Abu Dhabi Commercial Bank, Commercial Bank of Dubai, Dubai Economy, Emirates Islamic, Emirates NBD, HSBC, and RAKBANK have become allies in order to speed up the adoption of the initiative. The collaboration will help streamline the processes better and improve the accessibility.

Blockchain Streamlines Banking Processes

Consequently, the heads of these different institutions have stated that they are all in favor of increasing the usage of Blockchain throughout the financial community as it could transform the process of using pen and paper.  The DIFC’s initiative regarding the utilization of Blockchain technology will enable banks to streamline the new customer sign-up process.  Additionally, the technology promotes the sharing of data between licensing authorities and financial institutions.  The use of the KYC Blockchain is only the first of many future applications and developments that can the government will be able to use in the financial sector. Considering the innovations, this is a major step to improve the banking processes.

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Social Development Bank provides 9 billion Riyals in Pandemic Relief to Small Businesses and Self-employed Entrepreneurs
  • Newsletter, Saudi Arabia

Social Development Bank provides 9 billion Riyals in Pandemic Relief to Small Businesses and Self-employed Entrepreneurs

On May 2nd, Saudi Arabia’s state news agency announced that Social Development Bank introduced an initiative package that would provide small businesses and sole proprietorships with 9 billion Riyals ($2.4 billion USD) in Coronavirus relief funds.  This could help aspiring entrepreneurs with their business set-up in Saudi Arabia.  In addition to the funding, SDB is also providing a 6-month grace period for installment repayment effective April 1st. The financial boost has been given to counter the slowdown in the economy and will help businesses find the right footing again. 

Of the 9 billion Riyals, 8 billion ($2.1 billion USD) will go towards assisting roughly 6,000 businesses.  Additionally, the primary focus of the newly created portfolio will be entities in the health care industry as is the need of the time.  According to SPA, the state news agency, the initiative will include easier, flexible financing channels through micro-funding mediators for families and self-employed individuals beginning April 1st as well.  For many entrepreneurs that were in the pre-launch stage, this will help with company formation in Saudi Arabia. It will give the businesses the financial impetus it needs to incubate and grow even in these troubled times. The government has taken into account the current taxes and other financial considerations and balanced it with the initiative package.

In addition to the above, the initiative includes a health care portfolio that would add an additional 1,000 medical units in order to raise operational capacity. 

As with other countries worldwide, Saudi Arabia has taken action to counteract the economic effects of the Coronavirus pandemic by providing financial assistance to those small businesses and self-employed entities that have suffered the most.  Plus, the increase of medical units for additional operational capacity will enable the health care sector to manage any cases that may arise in the coming months.  When this is combined with social distancing practices, it will help us all get through this safely.

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Attracting new Companies to India requires improved Contract Enforcement and Infrastructure Upgrades
  • India, Newsletter

Attracting new Companies to India requires improved Contract Enforcement and Infrastructure Upgrades

Despite its negative implications, many experts feel that the outbreak of the Coronavirus has created a unique opportunity to bring new business investments to India.  They also contend that the country needs to put forth a concerted effort to attract new companies and investments that would create new jobs and generate economic wealth.  Ultimately, the goal would be new India company incorporation and promoting “Made in India” products.  With improved capabilities and advanced technological skills, India under Modi’s leadership is on the cusp of being in the limelight globally.

However, certain steps must be taken to entice companies away from China. Some of the experts are of the view that with many companies looking to move base elsewhere from China, will find that India is a better place to do business with the multitude of benefits the Modi government has initiated to help improve the ease of doing business.

Many experts contend that the key enticing companies to invest in India is improving contract enforcement and upgrading the country’s infrastructure.   The impact seen from the COVID-19 pandemic, is the fact that many countries are looking for alternative manufacturing sites in order to increase their supply chains.  When you take India’s lack of bureaucratic red tape, minimal labor costs, and reduced corporate taxes into consideration, the country is on the verge of being the next global manufacturing hub.

With India’s improved tax regimen and reduced taxations, it will help in attracting investments by companies looking to manufacture their products overseas. The tax sops will benefit both India and the overseas companies looking to migrate from China. By improving and seamless integration of FDI policies and trade regulations, India is coming to the forefront runner as a manufacturing hub for various companies and industries.

With more companies planning to move out of China, it holds potential for India to tap into the gap and offer its trade and manufacturing know-how.

Additional Considerations

In order to promote new company formation in India and present companies with an alternative to China-based operations, the Indian Government will need to take certain measures in order to accomplish this goal including:

  • establishing a mechanism for laws related to commercial and foreign exchange
  • overhauling their power utilities
  • putting a contract enforcing mechanism in place by creating specialized commercial courts


In addition to these measures, the government could also consider the reduction of certain related costs such as stamp duties.  India has been provided with a unique opportunity due to the Coronavirus and the impact it has had on the global economy.  It has literally opened the door for more foreign companies to establish their base of operations in India.

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Singapore Businesses and Workers to receive $33 Billion Stimulus
  • Newsletter, Singapore

Singapore Businesses and Workers to receive $33 Billion Stimulus

With the recent rise to 3.3% of the resident unemployment rate, Singapore’s Deputy Prime Minister announced on May 23rd that another $33 billion SGD ($23.2 USD) will be allocated to business and workers in order to support the country’s economy.  This stimulus, known as the “Fortitude Budget”, contains $2.9 billion SGD for job loss prevention and includes job support enhancements that will help to retain workers by co-paying their salaries. For those looking for Singapore company formation, this might be the apt time to act.

Additional Budgets have been introduced

Furthermore, the stimulus provides the $3.8 billion SGD that will help with controlling the Coronavirus.  In addition to this, Deputy Prime Minister Heng Swee Keat, who is also Singapore’s finance minister, was instrumental in introducing:

  • the Unity Budget in February ($6.4 billion SGD)
  • the Resilience Budget in March ($48 billion SGD)
  • the Solidarity Budget in the early part of April ($5.1 billion SGD)


Furthermore, the government added another $3.8 billion SGD to the Solidarity Budget later that same month.  Along with these budgets, the government has allocated nearly $100 billion SGD (roughly 20% of Singapore’s GDP) to help overcome the damage the pandemic has done to the country’s economy. They extend their assistance for those investors looking for Singapore company incorporation.

Deputy PM, Heng gave assurance that the government will protect the interests of the workers and will do its best to preserve jobs. The foreign worker tax waiver has been extended for 2 months for those businesses that have not been allowed to resume activities on site.  They are introducing a Bill to mandate the landlords to give mandatory rental waiver to SME tenants as there has been a drop in the revenue of these companies in the last few months. To set the trend, the government is giving 2 months waiver on rent for commercial tenants and 30 days waiver for agricultural, office and industrial tenants.

Economic Impact

Heng went on to assure the government that they will try to preserve jobs and protect every employee throughout this crisis.  Additionally, the government will extend the foreign worker levy waiver and rebate up to 2 months for businesses that have had to shut down their operations.  This includes firms in the building, marine and offshore, and process industry sectors.

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Dubai Airport Free Zone Authority launches Economic Incentives to support Free Zone based Companies
  • Newsletter, U.A.E

Dubai Airport Free Zone Authority launches Economic Incentives to support Free Zone based Companies

In order to overcome the challenges of the COVID-19 pandemic, the Dubai Airport Free Zone Authority or DAFZA launched a series of economic incentives aimed at helping companies that have suffered losses during this event.  In order to mitigate the impact that the virus has had economically throughout various business and industrial sectors, the incentives will provide continuity and flexibility.  This could also be beneficial for a business set-up in the Dubai Free Zone.

Counteracting the Negative Economic Impact

According to DAFZA Chairman Sheikh Ahmed bin Saeed Al Maktoum, launching these incentives will lessen the impact of the pandemic on many businesses.  By standing with other Free Zone companies, the Chairman believes it will enable companies to overcome the economic challenges associated with the spread of the Coronavirus.  The incentive packages will enable companies to mitigate the pandemic’s economic impact while at the same time ensuring the continuity of business in numerous sectors.

He was of the view that even though the world economies over have been affected, the Government stands with the industries and business to mitigate their losses. Some of the important aspects that have been covered include:

  • Refunding security deposits on leased commercial spaces
  • Refund on the labor guarantees of different companies
  • Exemption on rent for retailers for 90 days
  • Three-month postponement of lease payments
  • New companies get exemption from licensing and registration fees
  • Facilitating and streamlining financial payments in easy repayment installments
  • Cancellation of fines of companies


Dr. Mohammed Al Zarooni, Director General of DAFZA was of the opinion that these are some of the initiatives that give businesses and companies a reaffirmation that the UAE Government stands behind them to help them overcome the detrimental effects of the pandemic. He said that these are in line with the support offered to the companies as they are important to the local and global economic growth.

Provision of Financial Relief

The initiative will provide financial relief by enabling companies to delay lease payments for 3 months by facilitating monthly installments that will be easier to handle.  In other words, Free Zone retailers will be exempt from making lease payments for up to three months if needed.  In addition to the above, the Free Zone will refund labor guarantees and security deposits on leased spaces.  They will also exempt newer companies from having to pay licensing and registration fees and will cancel all company fines as well.  This falls in line with efforts to provide further support for Dubai company incorporation.

With a goal of overcoming difficult conditions immediately and over the long term, DAFZA officials have worked tirelessly to limit the spread of COVID-19 by implementing a number of preventive measures during this difficult period.  Additionally, DAFZA has formed a committee for crises and emergencies that has worked 24/7 to follow up on their operations within the Free Zone.  In addition to this, they have played a crucial role in ensuring that all Ministry of Health and Prevention directives and instructions, as well as those of other authorities, are being applied properly throughout the Free Zone.

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