Dubai creates new authority to improve business services and boost economic growth – News

Companies and individuals authorized in economic zones under the authority are exempt from all taxes for 50 years.

A new economic zone authority will be established in Dubai, on the basis of a law promulgated on Monday by His Highness Sheikh Mohammed bin Rashid Al Maktoum, vice president and prime minister of the United Arab Emirates and ruler of Dubai.

The new Dubai Integrated Economic Zones Authority – an independent legal entity with financial and administrative autonomy – will oversee the operations of the Dubai Airport Free Zone, the Dubai Silicon Oasis and the Commercial City of Dubai. Dubai, in accordance with Law No. (16) of 2021.

Sheikh Ahmed bin Saeed Al Maktoum was appointed chairman of the authority and Dr Mohammed Ahmed Al Zarouni as executive chairman.

The new law and the appointment decrees will be published in the Official Journal and will enter into force on January 1, 2022.

Sheikh Mohammed bin Rashid said the establishment of the Dubai Integrated Economic Zones Authority was part of the emirate’s efforts to increase the speed and efficiency of services for businesses and investors. This, in turn, will help accelerate economic growth.

“The establishment of the Dubai Integrated Economic Zones Authority is a vital step in improving Dubai’s global competitiveness and increasing its attractiveness for investment,” said the ruler of Dubai.

“Our goal is to make Dubai the destination of choice for global investors and a major focal point for global trade. “

The initiative also aims to consolidate the success of free zones as catalysts for growth and added value to the national economy.

More than 5,000 international companies, spanning 20 key economic sectors and employing 30,000 people around the world, will operate under the authority of the Dubai Integrated Economic Zones Authority. The economic activity that will be regulated by the authority generates five percent of Dubai’s GDP.

Tax exemptions

Businesses and individuals licensed in integrated economic zones under the authority are exempt from all taxes – including income tax – for 50 years, from the date of the new law. This exemption period can be renewed for a similar period by a decision issued by the ruler of Dubai.

All subsidiaries of the Dubai Integrated Economic Zones Authority and companies or individuals approved by the Authority are exempt from restrictions on the repatriation of capital, profits and wages in any currency and to any destination outside its zones. This exemption is valid for 50 years, renewable for a similar period by a decision issued by the Dubai Ruler.

In addition, the funds of licensed enterprises and their employees will not be subject to nationalization or restricted ownership.

Key priorities

“Our goal is to integrate government processes and facilitate better access to global markets through an accelerated transition to a digital environment,” said Sheikh Mohammed.

One of the authority’s main priorities is to attract local and international companies to establish their headquarters in the integrated economic zones of the emirate.

It aims to promote Dubai’s economic competitiveness, especially in the retail, technology, Islamic economy, e-commerce, industry, logistics and shipping sectors.

It also aims to support SMEs and stimulate entrepreneurship and innovation in all sectors.

The authority is responsible for establishing, developing and managing the infrastructure and administrative services of integrated economic zones, and for regulating commercial activities and services, including the import and storage of goods.

Partnership with the private sector

Sheikh Mohammed stressed that the private sector is a major partner in Dubai’s development journey over the next 50 years.

“We remain committed to strengthening our partnership with the private sector and making our business environment more attractive, two essential elements for sustained growth in our new phase of development,” said the ruler of Dubai.

The new law will support integrated economic zones in improving growth; diversify investment opportunities; and improving the ease of doing business.

About Tammy N. McFarlane

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