São Paulo – Abu Dhabi’s Khalifa Industrial Zone (KIZAD), an Abu Dhabi Ports subsidiary, announced this Wednesday (18) that it has slashed its land lease tariff on new contracts by 25%. Emirates News Agency (WAM) broke the news quoting the Abu Dhabi Executive Council.
Abu Dhabi Ports Group CEO Mohamed Juma Al Shamisi said the 25% 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.”
The land lease tariff reduction is one of the many incentives announced by the government to stimulate the economy. Other benefits include exemptions until the end of the year on commercial real estate registration, subsidized water and electricity for commercial and industrial activities, an AED 3 billion (USD 816.6 million) allocation for a small and medium enterprise credit guarantee program, 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 program, ETIP, introduced by the Industrial Development Board of the Abu Dhabi Department of Economic Development. This program saw a marked reduction in energy prices for the most productive companies operating in the zone. Under the terms of the ETIP program, eligible industrial companies can significantly reduce their expenditure on energy in exchange for their contribution to the economy.
Translated by Gabriel Pomerancblum
