Middle East’s Largest Industrial Zone Implements Abu Dhabi Executive Council Resolution to support new companies
Abu Dhabi, UAE – March 18, 2020: Khalifa Industrial Zone Abu Dhabi (KIZAD), a subsidiary of Abu Dhabi Ports, today announced that it has implemented the 25 percent reduction in land lease tariff for new contracts as announced by Abu Dhabi Executive Council on March 16.
The tariff reduction will help companies setting up in KIZAD a competitive advantage by lowering initial investment, and subsequently spur economic activity in the emirate of Abu Dhabi. The Executive Council initiative, which expands on the incentives offered under the Ghadan 21 programme, is aimed at providing relief and stimulus under the challenging global economic conditions.
Captain Mohamed Juma Al Shamisi, Group CEO of Abu Dhabi Ports, said: “The 25 per cent reduction in the land lease tariff supplements the competitive advantage KIZAD already has to offer businesses looking to establish their base of operations here. We value long-term partnerships with our customers, and we will continue to bring real, measurable benefits to the industry through the implementation of initiatives as well as the incentives extended by the Government of Abu Dhabi to help boost the economy of the emirate and the UAE.”
Land lease tariff reduction is one of the many incentives announced by the government to stimulate the economy. Other benefits include exemptions till the end of the year on commercial real estate registration, subsidized water and electricity for commercial and industrial activities, an AED 3 billion allocation for SME credit guarantee programme, waiver of performance guarantees of up to AED 50 million for startups, a new committee to review lending options for local companies, and waiver of industrial and commercial penalties.
This is not the first time KIZAD has implemented sweeping, business-friendly measures designed to stimulate investment and enhance the competitive advantage for its customers.
Last year, KIZAD made 75 of its services available to customers free of charge, and cut administrative registration fees in line with an Abu Dhabi Executive Council resolution.
In early 2019, KIZAD implemented an electricity tariff incentive programme (ETIP) introduced by the Industrial Development Board of the Abu Dhabi Department of Economic Development. This programme saw a marked reduction in energy prices for the most productive companies operating in the zone. Under the terms of the ETIP programme, eligible industrial companies can significantly reduce their expenditure on energy in exchange for their contribution to the economy.