Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of Dubai Executive Council, has launched an economic stimulus package worth AED315 million ($86 million), raising the value of business incentives introduced by the emirate’s government to AED7.1 billion ($1.93 billion).

The decision to launch the new stimulus package is based on the recommendations of the Dubai Economy Support Committee, chaired by Sheikh Ahmed bin Saeed Al Maktoum, Second Deputy Chairman of The Executive Council, to continue supporting all economic and business sectors in Dubai, reported state news agency Wam.

The AED315 million package extends the validity of some of the initiatives announced in the previous stimulus packages for another six months, starting from January 2021 until June 2021.

Sheikh Hamdan said: "The Dubai Government continues to assess the current global economic situation and the various developments amid these exceptional circumstances to develop practical strategies that will enable us to efficiently mitigate the repercussions of the global pandemic on the economy."

He added that the Government’s efforts to reduce the impact of the global crisis, accelerate the pace of recovery of economic sectors and provide necessary means to ensure business continuity, are in line with the directives of Sheikh Mohammed bin Rashid Al Maktoum, Vice President, Prime Minister and Ruler of Dubai.

"Despite the challenges imposed by the pandemic worldwide, our economy is steadily recovering. We have the capabilities and resources that enable us to achieve economic excellence and accelerate the recovery of our various business sectors. We are confident the next phase will bring new opportunities for entrepreneurs and investors," Sheikh Hamdan said.

The initiatives included in the stimulus package approved by Sheikh Hamdan include exempting commercial establishments and hotels that did not benefit from the reduction in previous packages launched in 2020 from the market fees one time during 2021.

He directed that non-beach hotels and their restaurants are refunded 50% from the hotel sales fee as well as the Tourism Dirham Fee.

In the tourism, entertainment and events sector, the exemption from the fees charged for postponement and cancellation of recreational and sports events and activities, including conferences and exhibitions, has been extended. The new package also extends the freeze on fees charged for ticket sales, issuing permits and other government fees imposed on entertainment and business events.

As per the approved initiatives, commercial licences can still be renewed without mandatory renewal of lease contracts. The package also includes extending the cancellation of the 25% down payment requirement for accepting instalments of licensing fees and licence renewal every month. Additionally, nurseries leasing land lots from the Knowledge Fund Establishment will continue to benefit from the 50% reduction in land rent.