economy

Mohammad announces new economic stimulus plans

New initiatives to include consultative council and support for SMEs

Gulf News Report
19:44 April 14, 2018
Dubai skyline

Dubai on Saturday announced new economic initiatives, including setting up a consultative council that will include international companies, to boost the emirates’s economy.

His Highness Shaikh Mohammad Bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, tweeted that the stimulus plans also include proposals to allocate 20 per cent of government tenders to small and medium-sized businesses, developing low-cost family tourism systems through a “time sharing” system, and the enact a mortgage law.

“Developing the competitiveness and resilience of our economy is a continuous journey whose goal is always to maintain the first positions,” Shaikh Mohammad tweeted.

A consultative council will be set up as part of the incentives to “enhance the contribution of international companies in shaping the legislative atmosphere and investing in infrastructure as well as boosting their role in building the local economy while focusing on creative industries,” according to a statement from WAM.

What individual government departments are planning

Department of Finance

■ Pay government fees by instalment, allocate 20 per cent of government tenders for small and medium-sized enterprises, and collect 3-4 stars hotels’ fees on a half-yearly basis instead of monthly Dubai Department of Economic Development (DED)

■ Waive companies of fines and trade violations, Renew commercial licences, reduce the operational cost of the retail sector, support local purchase by encouraging local production and attract 1,000 emerging growth companies in
Dubai, especially in the field of technology The Department of Tourism and Commerce Marketing (DTCM)

■ Increase the number of visitors at a low cost by attracting 10 per cent of the transit passengers, constituting an additional 1 million visitors annually.
Promote family tourism using the time share system. Increase the number of family tourists from 70,000 to 150,000 annually, in addition to encouraging tourists to stay longer and make frequent visits.

DIFC

■ Attract foreign investment, particularly from Southeast Asia. Attract foreign direct investment and benefit from financial flows, estimated at $200 billion. Strengthen the role of the DIFC. Facilitate the movement of financial products. Increase the volume of financial investments in Dubai.

Dubai Land Department

■ Develop a mortgage and finance law. Revitalise  investment in the real estate sector. Attract foreign investment portfolios.

Dubai Chamber of Commerce and Industry

■ Reduce the cost of doing business by reviewing fees and local laws to reduce the material burden on companies.

■ A consultative Council will be set up as part of enhancing the contribution of international companies. This is to boost their contribution to shaping the legislative atmosphere and investment infrastructure and enhance their role in building the local economy while focusing on creative industries.

The Dubai Islamic Economy Development Centre (DIEDC)

■ Develop and improve the sukuk market, increase sukuk issuance and listing in Dubai, develop new platforms including retail sukuk and the Secondary Sukuk Market for Small and Medium Enterprises

Ports, Customs and Free Zone Corporation

■ Conducting pre-customs clearance agreements and approved operator system, reduce the time required for foreign trade procedures, Activate shipping and air freight and boost and increase the volume of foreign trade by about Dh27 billion. Maintain the competitiveness of the Emirate as a global trading
centre. Establish Aluminium Derivatives Complex to draw the largest international companies operating in the field of aluminium derivatives.

Dubai South

■ Establish a specialised centre for the registration  of private aircraft, exempt private planes from prior permits for landing to make Dubai a global centre
for the registration of private aircraft by offering a package of integrated and distinctive initiatives.

Dubai Free Zones Council

■ Creating e-commerce regulations. Setting conditions and controls to find the best ways to attract international companies and encourage them to work in Dubai and its free zones.