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.
