The Fee Waivers of Dubai Government on Some Sectors

The Government of Dubai, under the directives of His Highness Sheikh Mohammad bin Rashid Al Maktoum, announced on February 5th, 2020 that it has introduced a package of new fee waivers for government services. The waiver is set to cover five different sectors, including marine, economic, health, social, and infrastructure sectors.

This is in line with the government’s aims of increasing investment in Dubai, and its broader objective of promoting growth and attracting foreign investors in order to make the UAE a more competitive economy. The above is an extension of previous government resolutions regarding fees. This is because operational and administrative fees can be a financial burden on businesses, investors and the general public who ultimately absorb the costs.

In March 2018 Sheikh Hamdan announced that government fees will not be increased for three years in support of economic growth. Moreover, the UAE Cabinet went further last year when it amended and waived fees for more than 1,500 federal government services provided by the Ministry of Interior, Ministry of Economy and Ministry of Human Resources and Emiratisation.

On a similar note, earlier this year, fees for real estate activities were also reduced for members of the ‘National Broker’ Programme. Some of the waived fees approved in this month’s announcement include:

• The Maritime Sector: Examples of reduced fees in this sector relate to establishment certificates, business cards, and the issuance of residencies.
• The Economic Sector: Some of the waived fees include sales fees for contracts, goods and services, property rentals, and promotions. Other examples include fees for obtaining permits, licenses and tickets for a range of commercial and tourism activities.
• The Health Sector: Medical training and education fees have been waived. Examples include first aid, health services and school’s awareness campaigns.
• The Social Sector: Waived entrance fees for entertainment and service facilities. These can include public libraries and heritage sites among others.
• The Infrastructure Sector: Lastly, the infrastructure sector has been confirmed to benefit from a fee waiver for some engineering supervision services, vehicle traffic, electronic registration, and other fees.

In total, 2,356 administrative fees imposed by 22 government entities have been reviewed. New legislation has also been introduced to regulate and limit the introduction of new administrative fees in the future. Initiatives such as this are enacted in support of the government’s objective of promoting Dubai to one of the most advanced and happiest cities in the world.

The reduction also has a direct impact of reducing living fees for all residents in the UAE. It is testimony to the government’s dedication to assess the needs of society, continuously measure performance, and improve living standards for all residents and citizens. The reduction will certainly go a long way in reducing operational costs for companies, and measures such as this are always a welcome development in improving the overall ‘ease of doing business’.

Special thanks to:

Ahmed Odeh | MIO Law Firm

for his help in writing the article.