Dubai South supports firms through coronavirus

5 May 2020

Dubai South Free Zone has released an economic stimulus package including flexible rent plans and fee waivers to help its clients through the coronavirus pandemic.

Dubai South will offer its clients flexible payment plans with easy instalment schemes as well as waivers of penalties on late renewals and cancellations of contracts and licenses.

Dubai South is the emirate’s flagship urban project. Launched in 2006, it aims to become a 145 sq km planned city with up to 1m inhabitants and supporting 500,000 jobs.

Individuals and companies looking to establish a new business will be granted rental fee reductions of up to 25%.

Dubai’s government unveiled an AED1.5bn economic stimulus package to help businesses deal the outbreak of Covid-19.

Meanwhile Abu Dhabi Ports has joined 19 of the world’s leading port authorities in signing a virtual declaration that commits to allowing merchant ships to berth and carry out cargo operations to maintain the global supply chain.

The declaration also commits to best practice in ensuring the safety of seafarers via Covid-19 precautionary measures.

The UAE overall saw growth of 1.7% in 2019, according to the Central Bank of the UAE, but the bank warned of the virus’s impact on supply chains.

“The UAE hydrocarbon sector is estimated to have exhibited a growth of 3.4% in 2019,” said the bank.

“However, non-oil activities advanced at a softer pace growing by 1%. As a result, overall real GDP is estimated by FCSA [Federal Competitiveness and Statistics Authority] to have grown by 1.7% in 2019,” said the bank in its annual report 2019.

“The spread of Covid-19 is expected to impact trade and supply chain movements, coupled with travel restrictions which paves way for high volatility in capital markets and commodity prices,” it added, saying it was still early to gauge the scale of the economic fallout.

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