Impact of The Federal Fee Review Project
The UAE government has reduce or waive some of their service fees, following a study service fees in comparison to international best practices. These charges stood for both mainland and freezones like Ajman Media City freezone.
The Federal Fee Review Project was start to attract business and investors to the UAE by showing them how business friendly the nation is. Also, it focuse on making UAE more competitive amongst other nations.
The Federal Fee Review initiative is part of the 2019 Cabinet Resolution No. 51,which covers a wide range of services that fall under the Ministry of Economy, Ministry of Finance, Ministry of Interior, and the Ministry of Human Resources and Emiratisation.
Some examples of the service charges that witnessed a cut are:
- The charge for a dispute taking place between appointment representatives, trade agents and collector, which has cause the amount to drop from Dh 12,000 to Dh 8,040
- The publishing official announcements fee of foreign private joint stock companies, witnessed a sizable drop from Dh 20,000 to Dh 10,000
- The fee set for the acquisition, merger or sale of foreign companies has been cut from Dh 15,000 to Dh 10,050.
- The registration and renewal fees trademarks or trademark goods, services and products were decrease from Dh 10,000 to Dh 6,700.
- The fee for processing a three-year registration for branches of national companies for auditors was also reduce from Dh 15,000 to Dh 10,050.
Ajman Media City Freezone
The concessions are expect to boost business in the area, which will not only benefit the economy and help in the development of areas like Ajman Media City Freezone, but would also help UAE achieve its goals that are set for Vision 2022.
UAE’s economy is heavily dependent on oil and gas reserves. However, since the country’s natural resources are depleting, it has become twice as important to find other factors to rest the economy on, which in this case is business.
UAE has become the business hub of the MENA region. However, there is still a long way to go if they want to maintain their existing economy and lifestyle, without any support from the energy sector.
Thus, in order to make the business sector the backbone of the economy, the government has taken certain steps such as Ras Al Khaimah Economic Zone’s Businesswomen,
grant Gold Card Permanent Residency visas, develop the infrastructure, host global events like the Expo 2020, and more. The Federal Fee Review is also conduct, keeping the same ideal in mind.
Since these concessions will make doing business easier, more and more people, who as yet hadn’t start their ventures due to the expensive start might reconsider.
And even if these service charges don’t account to much, they will make a big difference for freezone companies like the ones establish in Ajman Media City Freezone and Dubai World Trade Centre, which will receive freezone benefits too.