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Incentives and facilities packages at the level of Emirate of Abu Dhabi

1) Dh50 billion stimulus package

A massive Dh50 billion stimulus package for Abu Dhabi has been announced by Sheikh Mohammed bin Zayed Al Nahyan, the Crown Prince, with the aim of accelerating the economy over the next three years.

And the executive committee of Abu Dhabi executive Council has been given just 90 days to create a detailed execution plan for the package, which seeks to transform the ease of doing business, and bring lasting economic benefits to Emiratis, residents and investors.

2) New licences exemption for two years from requirement of office, and dual licenses of free zones companies in Abu Dhabi

This stimulus package includes exemption of all new licences in the emirate from the pre-requisite of a two-year office, the permission of home licences, and allowing most commercial licences and all services provided by the Abu Dhabi government to implement the online licensing system, the issuance of dual licenses for companies in Abu Dhabi free zones to enable them to work outside the free zones and to participate in government tenders.

3) Review of all fines

It also involves a review of all fines for the healthcare, education and municipalities’ affairs sectors.

4) Acceleration of settlement of due payments of private sector suppliers

Furthermore, there are instructions to accelerate the settlement of due payments on contracts for the private sector.

5) Review of building regulations

In addition, a comprehensive review of building regulations for both private and commercial property construction will be carried out, to reducing costs for developers and encourage urban development.

6) foundation of Abu Dhabi accelerators and Advanced Industries Council

H.H Sheikh Mohammed Bin Zayed Al Nahyan ordered the establishment of the Abu Dhabi Accelerators and Advanced Industries Council, “Ghadan”, which is Arabic for tomorrow, to attract and support value-added investments and technologies that would further grow Abu Dhabi’s economy.

7) More focus on the development of the local economy and creation of ten thousand job for Emiratis

Moreover, there is focus on the importance of supporting the development of the local economy and job creation in Abu Dhabi, by launching policies that promote partnerships between the public and private sectors, and projects that will accelerate active collaboration before the end of this year.

There will be road map for the creation of at least 10,000 jobs for Emiratis in the private and public sectors over the next five years, in addition to encouraging and organising local production and supporting SMEs to boost their competitiveness locally and regionally.

8) Accommodation of limited income persons

Department of urban planning and municipalities in Abu Dhabi has issued decision in relation to the accommodation of the limited income persons which provide for the provision and lease of residential units with rent not exceeding 35% of the individual or family income.

9) Waiver of late fines on the expired licenses

The Chairman of DED issued administrative decision no 114 of 2018 to waive 50% of the late fees on the licenses expired for more than 24 months in case application made for renewal, and to waive entire late fees in case of application for the liquidation and cancellation.

10) Licenses issuance and renewal billboards fees determined at 200 AED and new licenses exempted from the Center of Waste Management fees.

On 9 September 2018, the Department of Economic Development – Abu Dhabi (DED) issued two decisions aimed at facilitating the conduct of economic activities in the Emirate of Abu Dhabi as part of the initiatives and incentives provided to the private sector companies and enterprises operating in the Emirate. These decisions will help improve the Emirate's ranking in the Doing Business and Global Competitiveness Reports.

In its first decision, the DED modified the calculation mechanism of the billboards fees whereby the issuance and renewal of all kinds of economic licenses will be charged a fixed fee of 200 AED.

Moreover, the DED exempted the new licenses, whether commercial, industrial, professional, craft, construction and others, from the fees charged by the Center of Waste Management - Abu Dhabi and the need to obtain a No Objection Certificate for the first year.

11) Issuance of permits to conduct sale by mobile vehicles for the existing licenses for 66 economic activities and allowing UAE, GCC citizens and foreign investors to conduct car rental activities.

On 11 Sept 2018 Abu Dhabi DED issued a decision which permits for practicing sale using mobile vehicles are issued for 66 economic activities across the Emirate of Abu Dhabi in which case a valid license must be available. In addition to that, the requirements for this matter are amended through this decision as need for the public interest.

Moreover, as per this decision, the permit must match the facility's activity and the technical, administrative and financial requirements of the department and the approved external bodies must be adhered to while using mobile vehicles. These requirements include: Parking in the previously designated areas, as well as during events and festivals, using a specific and independent permit issued by the competent authorities. It is worth mentioning that since the announcement of this initiative, the DED has issued 262 permits for the mobile vehicles as part of Abu Dhabi Tajer license.

Abu Dhabi also made a decision which allows UAE and GCC (Gulf Cooperation Council) nationals, as well as foreign investors to practice car rental activity by means of establishing individual enterprises and commercial companies and branches inside and outside the Emirate of Abu Dhabi as per the applicable laws, regulations and decisions in this regard.

According to this decision, all facilities licensed to practice car rental activities must adhere to the technical licensing terms and standards issued by the governmental body that approved the licensing. In addition to that, the DED has the right to determine the appropriate terms and standards that govern this type of activity, including the location where it is practiced, in coordination with the concerned body.

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