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

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

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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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