Following the directives of @HHShkMohd, we have issued an order to freeze Dubai Government public services fees for the next three years— Hamdan bin Mohammed (@HamdanMohammed) March 4, 2018
The move, which aims to support the social stability of citizens, will have a positive ripple effect on all segments of society— Hamdan bin Mohammed (@HamdanMohammed) March 4, 2018
The directives will also boost Dubai's economic competitiveness and reinforce the government's continuous efforts to ensure social and economic security— Hamdan bin Mohammed (@HamdanMohammed) March 4, 2018
Businesses based in Dubai are jumping for joy with the news that Dubai will be freezing government fees for the next three years. The announcement, which was made as well as Tweeted by the Crown Prince of Dubai and Chairman of the Dubai on his Twitter account (@HamdanMohammed) this Sunday, is in line with the directives of His Highness ShEikh Mohammad Bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai.
It comes after a Cabinet decision on February 28 to freeze all fees and is expected to increase Dubai's economic competitiveness, attract more investments, promote socio-economic stability, as well as support the State's industrial and commercial sectors.
Last week, the UAE's cabinet made a similar commitment not to increase fees at a federal level for three years too.
But in layman's terms, what does all this mean?
Firstly, it's important to note that this decision comes after the UAE introduced a 5 percent value-added tax (VAT) this year. Considering that Dubai is known for having a low-tax environment, for many, that was a hard pill to swallow.
Secondly, add the fact that oil prices are low, coupled with the UAE's vision to create revenue streams outside of oil, by reducing the cost of doing business there, investments would rise and thus, make Dubai and the rest of the UAE more economically competitive.
So essentially this move also works in the government's favor. Freeze government fees for a long enough period of time to attract more investments and increase the socio-economic stability of the country as a result?
Sounds like a win-win!