Latest fee freeze in Dubai eases the cost of living
In light of the economic stimulus package launched by the Dubai government in April, His Highness Sheikh Mohammed Bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai and the Executive Council, are putting into effect a major fee freeze in key sectors.
The series of initiatives will include the freezing of private school fees, waiving the 4% late-payment fine for transactions with Dubai Land Department and the reduction or cancellation of certain government fees in aviation and business activities.
The stimulus package is meant to enhance Dubai’s attractiveness to foreign investors, encourage entrepreneurship and ease the daily cost of living.
Real estate investors will be much benefited by the 60-day exemption of the late-fee penalty on the 4% registration fees, as transactions will become more flexible and optimised. “The real estate sector is an important component of Dubai’s economy and we are providing the best government services to investors and developers”, Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of the Dubai Executive Council, stated.
The decision to hold off a hike in private school fees reflects the government’s will to prevent the rise of the cost of living, providing a much-needed relief to parents. Students in Dubai receive a world-class education with diverse curricula corresponding to both UK and US educational syllabi.
With a view to attracting more than Dh 1 billion in aviation sector investments, the new set of measures will waive fees on 19 business activities related to the aviation industry and aeroplane landing. As part of Dubai 2021, the Emirate is aiming to become a global aviation hub, leading the sector.
To ensure the continuity of an ideal business-friendly environment for investors, the latest reforms also include a slash of the ‘market fee’ by half. Imposed on businesses by the Dubai Municipality, the market fee will fall from 5% to 2.5%, to accelerate growth and reduce the financial burdens on businesses.
Businessmen, analysts, expats and foreign investors have welcomed the news for the ground-breaking measures that will turn the page for Dubai’s economic rebirth and ultimately result in exponential growth.
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