Fee relief for Dubai businesses feeling strain of Iran war

• Moves include flexible payment for tenants
• Retailers offered targeted support
• UAE business morale at 61-month low

Dubai’s financial hub has rolled out a package of temporary support measures to help businesses weather the economic fallout from the Iran war as companies across the emirate grapple with rising costs and weaker demand.

The Dubai International Financial Centre (DIFC) has introduced initiatives including flexible payment plans for retail and commercial tenants, instalment options for licence renewal fees and targeted support for retailers.

Grace periods have also been applied to selective administrative payments, covering lease-related charges, company registration, data protection and employee enrolment into the financial centre’s savings scheme.

In parallel, the Dubai Financial Services Authority is offering temporary regulatory relief to support new applicants and existing firms operating within the centre.

Arif Amiri, chief executive of the DIFC Authority, said the measures “reflect a thoughtful and proactive approach to easing immediate pressures”.

Business confidence in the UAE has fallen to a 61-month low, according to the latest purchasing managers’ index from S&P Global Market Intelligence, with tourism-linked sectors among the hardest hit.

Higher fuel costs are adding to the strain for consumers and businesses. UAE petrol prices have risen about 30 percent this month. Diesel is up 72 percent.

Emil McKenzie, a financial planner at global professional services company Progeny, said the DIFC move “will provide some short-term stability for businesses and help alleviate financial and operations pressures in these difficult times”.

Measures for economic zones

Elsewhere, the Dubai Integrated Economic Zones Authority has introduced a parallel set of measures across its zones, including Dubai Airport Freezone, Dubai Silicon Oasis and Dubai CommerCity.

These include stabilising rental rates at renewal and waiving selected administrative penalties, such as late licence fees, alongside a temporary pause on certain charges to ease compliance burdens.

Further support is focused on liquidity and restructuring. Companies can opt to pay rent in monthly instalments without additional fees, while charges linked to shareholder amendments, restructuring and capital changes have been deferred or waived for three months. 

Licence amendment fees have also been postponed, giving firms greater flexibility to adjust operations in response to shifting market conditions.

Further reading:

• Regional VCs can be lifeline for startups in tough times
• Fuel hikes taking large bite of delivery profits
• Alain Bejjani: Response to conflict will strengthen Dubai

Katy Keenan, chief executive of the British Chamber of Commerce Dubai, said the measures were more targeted than some had expected. “There has been a misconception that there would be direct liquidity,” she said. 

“Instead, this is predominantly about reducing fees, easing some banking costs and allowing payment deferrals to support the supply chain.”

In March the UAE central bank loosened liquidity rules and expanded access to funding for lenders. Dubai launched a AED1 billion ($272 million) support package for businesses, including a three-month deferral of government fees.