11 June 2018
UAE: Dubai and Abu Dhabi Introduce Range of Investment-Boosting Incentives
Dubai and Abu Dhabi, the two most populous emirates, have separately unveiled a range of incentives designed to boost their appeal to overseas investors.
Offering the most comprehensive package of the two, Abu Dhabi is to waive its longstanding requirement that commercial entities should have a two-year office or work space lease in place prior to submitting their business licence applications. In another move geared to appeal to the wider business community, building regulations are to be reviewed across the board, with a view to reducing the costs of real estate developers. Looking to super-serve companies located in one of the emirate’s Free Trade Zones (FTZs), meanwhile, all such businesses are to be issued with a dual licence, allowing them to operate beyond the boundaries of their FTZ bases and participate in government tenders.
In terms of the incentives on offer from Dubai, the ‘market fee’ levied on all businesses by the Dubai Municipality will be cut from its current level of 5% of a company’s annual commercial property rent to just 2.5%. Additionally, the 4% levy imposed by the Dubai Land Department in all instances of late land registration is to be waived for 60 days.
Final details are expected to be released by September this year.