Dubai: His Highness Shaikh Mohammad Bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE, yesterday issued in his capacity as Ruler of Dubai a decree exempting companies operating in Dubai from all fines imposed on them for not renewing their licences on time.
The exemption will also include companies operating in special development districts and free zones. According to the decree only those companies that rectify their status before the grace period that ends in June will benefit from this privilege.
The move is part of Shaikh Mohammad's continued support for the business community in Dubai. It underlines his keenness to find effective alternatives and solutions to spur activities of businesses with a positive approach.
Small and medium enterprises (SMEs) are the backbone of the UAE economy. According to the Dubai Statistical Centre, 98.5 per cent of registered enterprises in Dubai are small and medium businesses, employing about 61 per cent of the total workforce.
"Shaikh Mohammad's gesture is indeed helpful for small and medium enterprises. Once more, the initiative emphasises the support of His Highness for different business sectors in the emirates," said Sami Qamzi, Director General of Dubai's Department of Economic Development.
Reducing burden
The decree is part of Dubai's strategy to help firms reduce their financial burden and takes effect from the date of issue.
Welcoming the decree, Hamad Bu Amim, Director General of the Dubai Chamber of Commerce and Industry, said: "No doubt that Shaikh Mohammad's decree enhances investor confidence in the emirate. This is also a vital move to support the business sector and reduce its financial burden."
The business community welcomed the initiative and expressed hope that other emirates would follow suit.
"Such a move will help those who have been involved in debts to cancel or renew their licences without the burden of extra fines," said Abbas Mohammad, a Dubai-based businessman. "I have Dh90,000 in accumulated fines and I hope this will help me to restart some of my business."
"In these times of recession any concession coming from the government is very welcome. It will help the business community a lot and restore confidence among businessmen," said Rajesh Kumar Krishna, managing director of Indiana Real Estate.
"Because of the crisis I think it will be such a big help to the smaller businesses that need that helping hand, especially for expatriates who are starting their businesses in Dubai," said Geraldine Donato, office manager, Tonic Advertising.
