Ajman business incentives: Zero fines on bounced cheques, non-renewal of licenses

Measures to benefit more than 9,000 businesses at emirate's free zone

  
Image used for illustrative purpose. Emirate of Ajman is the smallest of the emirates by area.Image used for illustrative purpose.

Image used for illustrative purpose. Emirate of Ajman is the smallest of the emirates by area.Image used for illustrative purpose.

Getty Images

A new set of economic incentives have just been approved to ease the cost of doing business in Ajman and help entrepreneurs mitigate the financial fallout of the coronavirus pandemic.

The Ajman Free Zone (AFZ) announced on Monday that the new stimulus package for the second half of 2020 includes zero fines on bounced cheques, cheque replacements and non-renewal of licenses.

The new measures are expected to provide a much-needed economic relief for the more than 9,000 businesses registered at the free zone, including small and medium enterprises (SMEs) that have been affected by the pandemic.

The move follows an earlier programme that the emirate had announced which also sought to provide assistance to the thousands of companies at the free zone.

According to Shaikh Ahmed Bin Humaid Al Nuaimi, chairman of AFZ, the newly introduced incentives demonstrate the free zone’s commitment to providing an ideal business environment despite the “challenging global economic conditions.”

More incentives

As part of the new package, new and existing companies at the AFZ can also avail themselves of a three-month flexible instalment payment plan on their business centre lease and flexible instalment plan for six months on the rent for their offices, executive offices or warehouses.

There will also be discount rates on company registration fees and a 25 percent reduction on labour accommodation costs.

“More than 9,000 AFZ-registered companies, both existing and new, will benefit from the new package, which is expected to ensure continuity and support business momentum in the free zone and affiliated sectors,” AFZ said in a statement.

The free zone is home to investors from more than 145 countries.

The UAE has been proactive in alleviating the plight of businesses affected by the health crisis. Since the onset of the pandemic, Dubai has so far rolled out economic incentives worth 6.3 billion UAE dirhams.

(Writing by Cleofe Maceda; editing by Seban Scaria)

Cleofe.maceda@refinitiv.com

#AJMAN #INCENTIVES #BUSINESS #UAE

Disclaimer: This article is provided for informational purposes only. The content does not provide tax, legal or investment advice or opinion regarding the suitability, value or profitability of any particular security, portfolio or investment strategy. Read our full disclaimer policy here.

© ZAWYA 2020

More From Business