Logistics companies operating in Dubai are set to benefit from renewed financial support from the government after Sheikh Mohammed bin Rashid Al Maktoum unveiled an AED500 million ($136 million) economic stimulus package.
The package will bring total government support to AED6.8 billion ($1.85bn), the prince said on Twitter.
Logistics businesses are a key focus in the government’s support package and some initiatives announced in the government’s previous stimulus plan will also be extended to support the sector.
These include extending the freeze on market fees levied on all sectors in Dubai until the end of 2020. The exemptions for traditional commercial vessels registered locally in the UAE from docking fees at Dubai Port and Hamriya Port (including direct and indirect loading fees) will also be extended.
The AED50,000 bank or cash guarantee required to conduct customs clearance activity will continue to be waived, and bank and cash guarantees paid by customs clearance companies will be refunded. Also, the fees on customs documents will continue to be reduced from AED50 to AED5 for each transaction, and the requirement for providing a banking instrument when submitting customs-related grievances continues to be cancelled.
Under @HHShkMohd’s directives, we announce a AED500 million stimulus package to support the local economy, bringing the total worth of stimulus packages announced this year to AED6.8 billion. pic.twitter.com/X4YCmU5X0e— Hamdan bin Mohammed (@HamdanMohammed) October 24, 2020
“The business sector is at the heart of our economy,” said Sheikh Hamdan. “We are keen to revive the business environment and open new horizons for entrepreneurs and investors in line with Dubai’s future aspirations.”
He said the current circumstances “require consistency in the business approaches to ensure continuity and a flexible economic environment that can adapt to global changes”.
Cancellation of all fines charged for late payment of government service fees and payments of penalties to renew commercial licenses has also been extended. Furthermore, commercial licenses can be renewed without the mandatory renewal of lease contracts. The 25% down payment requirement for paying government fees in instalments will also be cancelled until the end of 2020.