UAE's Ministry of Economy reduces fees for 94 of its services

Move expected to result in Dh113 million worth of savings for businesses in 2020

ABU DHABI,  UNITED ARAB EMIRATES , OCTOBER 7  – 2019 :- Sultan bin Saeed Al Mansoori, UAE Minister of Economy speaking during the UAE-Lebanon Investment Conference held at the The St Regis Saadiyat Resort in Abu Dhabi. ( Pawan Singh / The National ) For News. Story by Khaled Yacoub

The UAE's Ministry of Economy reduced fees for 94 of its services to offset the coronavirus pandemic's effect on the business sector.

The ministry said on Sunday that the move would result in Dh113 million worth of savings for businesses in 2020.

The fee reduction of up to 98 per cent covers a range of services related to innovation, business, investment, production, trade as well as import and export activities.

"Reducing fees for services provided by the Ministry of Economy to individuals and companies will reduce the cost of establishing and conducting business in the country and will reduce the burden on commercial and investment institutions, which is to support the main and affected sectors stimulating the economic environment and ensuring the sustainability of the pioneering structure of the national economy and business continuity," said Sultan Al Mansouri, Minister of Economy.

The most prominent include commercial registration, trademark and intellectual property services, as well as fees linked to commercial agencies and auditors.

Mr Al Mansouri said the ministry and its partners were fully committed to dealing with the "negative effects that Covid-19" has had on the national economy.

He said that the ministry will closely monitor the market to develop "urgent solutions as well as medium and long-term incentive plans" to protect the economy and speed up its recovery.

The fee for the collective management licence and its annual renewal, as well as the charge for replacing a lost licence were cut by 25 per cent to Dh75,000, Dh37,500 and Dh750, respectively.

The fee for the translation licence of a workbook was also reduced by 25 per cent to Dh750.

The licence renewal fee for the use of the 'made in UAE' trademark was slashed by 98 per cent to Dh50 while the fee for the first-time use of the 'made in UAE' trademark was cut by 95 per cent to Dh100.

Other business costs such as fees related to the sale, merger or acquisition of foreign companies and for the opening of branches by partnerships were reduced by 25 per cent to Dh7,500 and Dh750 respectively.

The application fee for opening a branch of office for a foreign company was reduced from Dh5,000 to Dh3,500.

The fee for the approval of partnership contracts was halved to Dh50.

The move comes after a number of measures were adopted to reduce the cost of doing business in the Emirates to mitigate the impact of the coronavirus outbreak on businesses.

Last month, free zones such as DP World and the Dubai Multi-Commodities Centre cut business-related fees and offered rent waivers for companies operating within their facilities.

The Abu Dhabi Global Market also introduced new measures that will run for up to 12 months in the financial free zone on Al Maryah Island.

The measures include the postponement of rent payments and service charges for office tenants within ADGM Square this year.

The UAE government also launched a stimulus package to support the economy and businesses in the country.

Last month, the UAE Central Bank announced a Dh100 billion economic stimulus that was later increased to Dh256bn.

The regulator reduced reserve restrictions on bank deposits and expanded its Targeted Economic Support Scheme.

In other measures, Abu Dhabi waived Dh246m in penalties in its push to support private companies, in line with the stimulus package announced by the government.

The decision by the Abu Dhabi Department of Economic Development is expected to benefit more than 72,200 private companies that include small to medium-sized businesses in the commercial and industrial sectors, it said earlier this month.

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