Dubai’s DIFC offers three-month rent waiver to retailers

The Dubai International Financial Centre (DIFC) announced a new support package offering a three-month rent waiver on base rent for business partners leasing out DIFC-owned assets within the financial freezone.

From April to June 2020, retailers of all types based in Gate Avenue, Gate Village and Gate District will not be required to pay basic rent, reported official news agency WAM.

“Waiving basic rental fees for retailers will secure livelihoods and enable outlets to once again contribute to one of Dubai’s primary shopping destinations with ease and flexibility as markets start to rebalance,” said Essa Kazim, governor of DIFC.

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Meanwhile, Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, Deputy Ruler of Dubai and President of DIFC said: “The latest measures announced by DIFC are part of Dubai’s broader strategic framework for assisting businesses in easing the financial strains caused by the pandemic and helping them renew their business momentum when the crisis ends.”

This latest new incentive by the DIFC follows those that were announced last month.

Among the measures outlined by the DIFC in March, officials proposed to implement five initiatives over the following three months including waiving annual licence fees for new companies for three months, and a 10 per cent discount on renewal fees for existing licences during the same period.

It also decided to postpone payment plans for all commercial properties owned by DIFC Investments for six months.

Read: Regulator of Dubai’s financial hub DIFC proposes relief measures for firms

DIFC additionally said that it would reduce its ownership transfer fees from 5 per cent to 4 per cent for any property sale that occurs within the authorised three-month period, if ownership transfers are registered at DIFC within 30 days after the end of the three-month period.

It would also facilitate the free movement of labour in and out of the DIFC to other free zones, provided the concerned employers have the necessary arrangements and contracts in place with their employees.