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Dubai Silicon Oasis offers rent waivers, deferred payments to residents, startups and retailers

Dubai Silicon Oasis offers rent waivers, deferred payments to residents, startups and retailers

Existing residential tenants at Dubai Silicon Oasis can now make monthly payments towards their rent

On Sunday, April 19, the Dubai Silicon Oasis Authority (DSOA) announced a raft of new economic relief measures including flexible payment plans, waivers and rental reductions for residents, startups, companies and commercial tenants within buildings owned by the authority.

“The exemptions and incentives approved by DSOA are in line with the directives of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, and seek to enable various businesses, including those working at DSO, to ensure business continuity and enhance their agility and resilience in dealing with the global effects of the pandemic,” said Dr Mohammed Al Zarooni, vice chairman and CEO of DSOA in a press statement.

Other developers and conglomerates in Dubai including Nakheel and Al-Futtaim Group have announced separate packages to help businesses in properties owned by them to cope with the economic fallout of the Covid-19 crisis.

Read: Dubai developer Nakheel announces Dhs230m relief package, offers rent waivers

DSOA’s latest incentives come at a time when residents across Dubai have been instructed to stay home throughout the day and to exit their homes only for essential purposes.

Almost all commercial establishments in Dubai remain closed, with work-from-home measures implemented across public and private sector companies in the emirate.

Incentives for residents
Existing residential tenants at Dubai Silicon Oasis (DSO) can now make monthly payments towards their rent. DSOA will defer all new and existing lease payments for up to two months and provide flexible payment plans for the remainder of the lease duration.

It will waive retrieval fees on bounced cheques for first-time offenders.

Residential villa tenants can avail a discount of Dhs5,000, while other residential tenants receive a discount of Dhs2,000, if they pay the annual rent as one deposit.

Incentives for retail businesses
Rent waivers are being offered to the retail sector including restaurants, shops, and gyms at DSOA-owned buildings affected by the closure of businesses, commencing from March 15, 2020 and ending once the government allows retail outlets to reopen.

In addition, these businesses are exempt from late payment fines until August 31.

The retail sector at DSO will receive discounts of up to 10 per cent of the rental value upon renewal, and an additional five per cent discount on the annual rent, if paid on time and in one instalment.

Marketing fees, likewise, are to be reduced by 25 per cent, and deferred for up to three months.

Retail business owners can also choose to pay outstanding fees in instalments, and leverage their visa security deposits to pay off their financial dues to DSOA.

Incentives for startups and companies
The DSOA has approved a waiver of all late payment and overstay fines until August 31, 2020 for startups based at Dubai Technology Entrepreneur Campus (DTEC), the largest tech hub and co-working space in the MENA region.

DTEC is providing entrepreneurs deferred rent payments for up to three months, and a five per cent discount on their annual rent, if paid on time and in one deposit.

In addition, on renewal of their tenancy contracts, flexi desk and fixed desk tenants can pay their rents in up to six instalments, in addition to leveraging their visa security deposits to pay off their financial dues to DSOA.

DSOA has also approved a flexible payment scheme for companies operating from its buildings. Companies can postpone rent payments for the next three months, commencing April 2020. Service charges are also being waived from March 15 until further notice, and payments can be spread, based on discussions with DSOA’s finance department, over a period of six months following the expiry of the postponement date.

DSOA is waiving cheque retrieval fees and pardoning first offenders’ bounced cheque fees, thereby facilitating easy monthly payments in accordance with its terms and conditions.

In addition, DSOA is issuing a waiver on all late payment fees until August 31 for companies, and granting a five per cent discount on the annual rent – if paid on time and in one deposit.

The authority is further enabling customers to use their visa security deposits to pay off their rental financial dues.

New companies establishing their offices in DSO for the first-time are offered a grace period on monthly rent payments until the end of May 2020, and a discount of up to 10 per cent on their monthly rent.

Furthermore, DSOA is waiving the service charge until the government allows companies to continue working from their offices.

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