Dubai’s Executive Committee (chaired by Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of Dubai Executive Council) has lately approved a reduction of fees in education, aviation and real estate as it looks to boost the Emirate’s economy, tells Arabian Business. Locals can also expect a diminution of government fees set to reduce the cost of doing business in Dubai in aim to boost investments into various sectors of the economy.
What’s more, the government will also reduce the market fees imposed by Dubai Municipality on commercial entities from 5 per cent to 2.5 per cent, effective immediately.
The Council Members were briefed on a number of proposals and approved suggestions to make their decisions to find effective ways to boost economic growth, while creating jobs and making it easier to do business in the emirate. Dubai’s approval of a stimulus plan is an important step towards strengthening the Emirate’s position as destination of choice for investments and will make it even more competitive on the international business arena. Each specific measure targets an important sector:
· In order to reduce the financial burden on parents, the decision was not to increase school fees for all private schools in Dubai for the academic year 2018-2019.
· In order to develop the aviation sector, Dubai is going to be cancelling 19 fees related to the industry and to aircraft landing permits, as part of the government’s initiative to create more foreign investments and make the emirate more competitive. This is one of the key sectors that needs to be strengthened, the Crown Prince said on Twitter. So far, “no details were given on the specific fees to be reduced or cancelled,” as reported last month by the Dubai Civil Aviation Authority (DCAA), which oversees all aviation-related activities in the emirate.
· In order to meet the requests from real estate developers and investors, the emirate will also waive estate registration fines for 60 days before issuing fines to real estate developers for late-payment of property registration fees.
· In addition, to reduce the financial burden on businesses, “the ruler of the UAE emirate of Ajman has issued two decrees to exempt companies from some penalties and reduce fees” for Ramadan, notes Gulf Business.
· And let’ not forget there’s a reduction in VAT (fixed at 5 percent) It’s also confirmed that UAE’s cabinet will not to increase fees at a federal level.
However, other professional service fees will apply. For example, there will be no expense deduction to support social and cultural development projects; today, there remains the investing revenues from the Innovation Dirham and Knowledge Dirham Fee, which will be levied on all transactions for government services in Dubai.