UAE | Government
UAE Vice President tells Dubai Government departments not to increase fees
The Dubai Government on Thursday said it will reduce business and licensing fees by 20 to 30 per cent and freeze the government fees on essential services to help the emirate's private sector overcome the current economic slump. No new fees will be introduced.
- By Saifur Rahman, Business Editor
- Published: 19:58 May 28, 2009
- Image Credit: Gulf News Archive
- Shaikh Mohammad approved a fee structure mechanism for government services suggested by the Finance Department.
Dubai: The Dubai Government on Thursday said it will reduce business and licensing fees by 20 to 30 per cent and freeze the government fees on essential services to help the emirate's private sector overcome the current economic slump. No new fees will be introduced.
His Highness Shaikh Mohammad Bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, issued orders to Dubai Government departments to reduce some of the government fees relating to business activities by 20 to 30 per cent while freezing the rest, according to a report by WAM.
"This decree comes in line with Shaikh Mohammad's keenness to enhance Dubai's economic competitiveness and augment the continued government backing of the investment environment in Dubai, in addition to the positive affects of this environment on all walks of life," the report said.
Abdul Rahman Saleh, the newly appointed director-general of the Department of Finance, told Gulf News that "This is a clear message to the private sector that the government will support them overcome the current economic situation. The move by His Highness will help the private sector companies reducing costs and manage businesses better."
Some businesses are currently suffering from a decline in revenues and cash flow problems.
More than 105,000 companies registered with the Department of Economic Development and Dubai Chamber of Commerce and Industry, in addition to more than 20,000 registered with the free zones, will benefit from the decision.
Shaikh Abdul Karim, vice-president at Sharjah Islamic Bank, said, "It is a welcome move and will definitely boost the business confidence and enhance the competitiveness of the private sector in Dubai. As Dubai was becoming a costly place to live, work and do business, a large number of [companies] were relocating to cheaper destinations. The move will help in easing pressure on companies. However, further steps in reducing utility rates, rents and the essential fees and service charges will significantly improve the situation," he said.
Shaikh Mohammad had approved a fee structure mechanism for government services suggested by the Finance Department, which ensures offering fair rates for all government services in the best interest of the public, WAM said.
Accordingly, Shaikh Mohammad instructed the Finance Department to review fees, prices and tariffs of government services and work to reduce the fees that exceed the set limit according to the set pricing mechanism. He also instructed them not to increase the fees which fall under the set limit.
According to the order, fees for some economic and investment activities have been reduced by 20 to 30 per cent. These include the fees for:
• Issuing and renewing trade and professional licences • Issuing licences for sales and promotional campaigns • Issuing property ownership certificate • Registering rent-to-own contracts.
• Extending mortgage repayment tenure
• Termination of rent-to–own contracts
• Evaluating buildings without land
• Improving services
• License for transforming building into hotels or hotel apartments.
• Building modification
• Analyzing food samples
• Engineering tests
• Vocational testing
• Yearly licensing for food related activities
• Utilizing areas allocated for desert tourism sanctuaries
With inputs from WAM
Your comments
A very sensible step but still needs to work more in many other parts to help stop the business owners losing on in business. 1) reduce the rents. 2) reduce visa charges. 3) reduce utility bills. 4) reduce fuel prices
Zahra
Dubai,UAE
Posted: May 29, 2009, 17:07
This is a warm welcome for the business community. The warmest welcome will be when the rent are brought down as they constitute almost 50-60% of the total expenses.
Shyam
Dubai,UAE
Posted: May 29, 2009, 16:22
Excellent step! With cost of living already coming down, this step would do great in attracting more investors and increasing confidence of existing ones. The Govt. decision to increase infrastructure spending is a vital one. As soon as global markets recover, Dubai will be all ready to ride the tide! Face of the Middle East, can never go wrong!
Bilal Parvaiz
Dubai,UAE
Posted: May 29, 2009, 15:34
That is the good news and also consider the rents and check those companies who are not paying the salaries on time.
MUNAWAR SULTANA
Sharjah,UAE
Posted: May 29, 2009, 15:23
Dubai, is really fortunate to have the leader of world class abilities. He is a true leader with vision and adaptability. Making Dubai competitive is the approach that we all need to work on. There are many more steps which should be taken to ensure that Dubai remains best connecting centre for east and west.
Wasif Ali Khan
Dubai,UAE
Posted: May 29, 2009, 13:45
I think His Highness tackled the problem that all the rest of the world still is missing: in spite the big talking about the help governments should give to exit the crises.
Giovanni Cerasoli
Pisa,Italy
Posted: May 29, 2009, 13:44
We are facing big problems due to hike in fees and bus charges in sharjah school. please suggest us what will be possible steps taken to reduce these fees at this time of economic recession?
Norman
Sharjah,UAE
Posted: May 29, 2009, 13:02
yes its good news all of us. please consider construction companies. Some are not giving salaries on time.
Emran
Dubai,UAE
Posted: May 29, 2009, 12:00
Employers are cheating employees on every issue. What will businesses do without talented employees? Talent is required everywhere. There will be migration of talent and just reducing government fees and that too focusing on real estate and properties is just not going to gel. Well, it is a good beginning, though.
Dr. K. B. Vijayakumar
Dubai,UAE
Posted: May 29, 2009, 11:50
It was warm welcome to reduce prices for Business Activities. We thank His Highness Shaikh Mohammad. also please reduce the rent - it is very important.
Ensan Ali
Dubai,UAE
Posted: May 29, 2009, 11:24
I appreciate the new fees amendment.
Mohammad Farook
Chennai,Indiai
Posted: May 29, 2009, 11:09
It is excellent news, however the charges on the free zones for various services (investors) also must be reduced.
Guilherme
Dubai,UAE
Posted: May 29, 2009, 10:39
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