The Dubai Free Zones Council (DFZC) has announced an stimulus package to support businesses active in the free zones scattered across the country, and to complement government efforts to tackle the economic crisis caused by the coronavirus outbreak.
The package includes five key elements: the postponement of rent payments for up to six months; the cancellation of penalties for companies and individuals; the facilitating of payments through monthly instalments; refund of various insurance and guarantees claims; and temporary contracts that allow the free movement of labour between companies in the free zone.
The measures are designed to mitigate the economic effects of the spread of the coronavirus and speed up economic revival. “To ensure business continuity of companies and providing them the support they need are critical to the Dubai economy’s ability to successfully overcome the crisis,” said DFZC chairman Sheikh Ahmed bin Saeed, according to GulfNews.com.
Dubai’s free zones attracted 101 greenfield FDI projects in 2019, finds investment monitor fDi Markets. They play a significant role in attracting investment and promoting sustainable economic growth, contributing to one-third of Dubai’s GDP and hosting 45,000 companies with nearly 390,000 employees, according to local media.
The DFZC move follows Crown Prince Sheikh Hamdan bin Mohammed’s announcement on March 13 of an economic stimulus plan to reduce the effects of the pandemic on the economy. It includes measures to protect businesses, especially in tourism, retail, external trade and logistics services.