In its move to spur business and boost foreign investment inflows in the emirate, Dubai state-owned convention center Dubai World Trade Center (DWTC) is slashing incorporation and licensing fees for businesses by up to 70% within DWTC Authority—a free zone (FZ) offering offshore licenses for businesses and One World Central.
According to the announcement, depending on the size of the business, immigration-related service fees too will be cut down by 40% to 50%. Through this initiative DWTC said it hopes to support the in-flow of foreign direct investments (FDI) in the country that was $7.4 billion in 2017, 7.1% higher than 2016.
The UAE government aims to boost the FDI by increasing the contribution of non-oil private sector to 80% by 2021. The sector’s share currently stands at 70% due to slow economic growth.
The move will benefit big companies, who are looking to establish their headquarters in Dubai which is considered as the trading and commercial hub of larger Middle East region. The step will also help existing companies spend less when doing business.
Commenting on the announcement, Helal Saeed Almarri, the director general of DWTCA said, “DWTC’s commercial propositions are designed to support the government’s mandate on reducing fees to scale down the cost of doing business for the private sector and to offer a viable ecosystem that supports sustainable, long-term success.”
“The significant reductions will collectively increase the competitiveness of, and the ease of doing business within the DWTCA free zone”, he added.
World Bank expects UAE’s overall GDP growth to recover to 2.5% in 2018 up from 1.7% in 2017, with inflation projected to rise to 2.9% end of the year.