JAFZA joins economic stimulus fight with AED 1.3-billion in refunded fees
JAFZA, a subsidiary of DP World, plans to help stimulate the UAE economy with a AED1.3-billion (US $354 million) refund on a range of fees from September, according to Bloomberg.
The money will be returned in cash and bank guarantees to its clients in an effort to stimulate the broader economy, according to reports.
Jebel Ali Free Zone will start refunding companies operating in its jurisdiction from September. The freezone said in a statement that the move will help companies invest in their operations and strengthen their businesses.
This latest move comes after the United Arab Emirates last year reduced fees required to hire foreign workers, cutting the annual cost to just 60 dirhams per employee from 3,000 dirhams.
The stimulus was intended to blunt the effects of lower oil prices and weakened regional economies which have hurt growth in the country.
JAFZA and port operator DP World are key employers in Dubai accounting for 16.2% of the emirate’s total workforce, while the freezone alone facilitates 33% of Dubai’s economic activity.