Khalifa Industrial Zone Abu Dhabi announces stimulus package for SMEs

The Khalifa Industrial Zone Abu Dhabi (KIZAD) has unveiled a new economic stimulus package with saving of up to 36 per cent for businesses operating within the freezone and for SMEs coping with Covid-19 pandemic.

KIZAD, a subsidiary of Abu Dhabi Ports, has divided its relief package into three tiers:

– 25 per cent saving on renewal or new three-year registrations

– 20 per cent saving for two-year registrations and renewals

– 15 per cent saving on one-year registrations

The package which is available to both existing and prospective KIZAD free zone customers additionally offers a waiver on the security deposit and an additional two months for free when renewing all packages registered before June 30, 2020.

Approximately 98 per cent of companies in Abu Dhabi are SMEs, contributing 29 per cent of the emirate’s GDP and 44 per cent of its non-oil economy.

The value of non-oil foreign merchandise trade through Abu Dhabi ports hit Dhs37.1bn in January and February, 2020, up 3.6 per cent from Dhs35.8bn over the corresponding period last year.

Read: Abu Dhabi reveals new initiatives such as toll waivers, fee cuts to support economy

“Small and Medium Enterprises are the backbone of any economy, and are a vital component of Abu Dhabi’s business landscape. As engines for growth and employment, SMEs are one of the main pillars of KIZAD’s business strategy,” said Khalid Al Marzooqi, commercial director at KIZAD.

“As one of the leading enablers of industry, it is our responsibility to provide businesses with the opportunities to be competitive in their respective markets. The SME relief packages we announced today are aligned with the UAE’s efforts to protect SMEs in the country from the economic impact of the coronavirus pandemic,” added Al Marzooqi.

In April, Abu Dhabi Ports announced similar relief measures including the waiving of penalties associated with late renewals of licences in the second quarter of the year, as well as rent deferments and a freeze on late payment penalties.

Earlier this week, Abu Dhabi Customs offered importers in Abu Dhabi seven new incentives which included the postponing of payment of custom duties, cancelling temporary insurance admission fees, pre-clearance services prior to the arrival of shipments and the option of returning bank guarantees and substituting them with corporate guarantees.

Read: Abu Dhabi Customs launches economic stimulus package to support importers

Additionally, the customs body is also offering importers a self-clearance service which will allow companies to clear shipments themselves without resorting to customs brokers.