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Dubai, UAE: Real estate advisor, Savills, says the announcement of the economic stimulus package for Dubai Free Zones, under the directive of Sheikh Mohammed Bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, will help to ease the burden on corporate tenants.
The recent announcement will include postponement of rent payments for up to 6 months, facilitating financial payments through monthly installments, refunding insurance and guarantees (such as tenant deposits), cancelling certain business penalties for companies and individuals and allowing intra-corporate transfer of labour between companies and sectors operating in free zones.
Savills welcomes the initiative from the Dubai Free Zones Council and says the move will help businesses to plan for the future.
Paula Walshe, Head of International Corporate Services, said, “This is a very positive and welcome initiative, which will give tenants clear breathing space, and the ability to take a longer term view on business forecasts. Primarily, it helps to reduce immediate costs to maintain business continuity and preserve jobs.”
Dubai Free Zones has around 45,000 companies and 390,000 employees, accounting for approximately a third of Dubai’s GDP.
Walshe added, “The refunding of security deposits and restructuring payments will improve liquidity for businesses located in the Free Zones and reduce the financial burden, particularly on SMEs. While these steps apply to occupiers in Free Zone owned buildings, it will be interesting to see if this is mirrored by private landlords. We have seen a trend in recent years for Dubai landlords to work collaboratively with tenants to find solutions, which has really helped to secure business longevity. It’s an uncertain time, but Dubai government is setting an exemplary standard for the commercial real estate market.”
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About Savills
Global property agents Savills provide an extensive range of residential and commercial services across the United Arab Emirates, Oman, Bahrain, Egypt and Saudi Arabia. Established in the Middle East over 40 years ago, expertise includes everything from financial and investment advice to valuation, planning, and property management. Originally founded in the UK in 1855, Savills has a long-standing history and over 600 offices across the Americas, Europe, Asia Pacific, Africa, and the Middle East.
For further information about Savills: www.savills.com
Media Contact:
TOH PR
savills@tohpr.com
+971(0)4 382-8900
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