Dubai Silicon Oasis Authority Launches Incentives, Exemption Packages for Business Partners, Residents
- Offers restaurants, shops, and gyms impacted by the closure rent waivers from March 15, 2020 until further notice
- Postpones rental payments for several business partners for three-month period, starting April 2020
- Waives late payment fines until August 31, 2020 for multiple business partners, residential tenants
- Reduces marketing fees by 25%
Dubai-UAE: 19 April, 2020 – In a bid to support business continuity and enable its business partners to overcome the effects of the current economic slowdown following the outbreak of the COVID-19 pandemic, Dubai Silicon Oasis Authority (DSOA), the regulatory body for Dubai Silicon Oasis (DSO), today announced exemptions, incentives and flexible payment plans for companies, commercial tenants, and residents occupying buildings owned by the Authority.
DSOA has approved several comprehensive economic incentives to complement Dubai government’s ongoing economic stimulus efforts. As part of the package of incentives, DSOA is offering rent waivers to the retail sector affected by the closure including restaurants, shops, and gyms at Dubai Silicon Oasis Authority owned buildings, commencing from March 15, 2020 and ending once the government allows retail outlets to reopen. In addition, they are exempt from late payment fines until August 31. Likewise, multiple business partners and tenants are to also benefit from a waiver on all late payment fines until August 31.
The Retail sector at DSO will also receive discounts of up to 10 percent of the rental value upon renewal, and an additional five percent discount on the annual rent, if paid on time and in one instalment. Marketing fees, likewise, are to be reduced by 25 percent, and deferred for up to three months. Retail business owners can also choose to pay outstanding fees in installments, and leverage their visa security deposits to pay off their financial dues to DSOA.
Dr Mohammed Al Zarooni, Vice Chairman and CEO of DSOA, said: “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 COVID-19 outbreak. Reflecting our continuing support to our community and society, this move aligns with the wholehearted commitment of all economic and social sectors to the precautionary and preventive measures implemented across Dubai and the wider UAE as part of the National Sterilisation Programme.”
He added: “This initiative reaffirms our strong ties with our business partners and our community. DSOA is keen to boost the mutual trust we share with our business partners and tenants and support them in overcoming the current exceptional circumstances. We believe our collective efforts will go a long way in opening up sustainable opportunities for the future.”
Dubai Technology Entrepreneur Campus
DSOA has also approved a package of incentive measures for startups based at Dubai Technology Entrepreneur Campus (Dtec), the largest tech hub and coworking space in the MENA region, wholly owned by DSOA, including a waiver of all late payment and overstay fines until August 31, 2020.
Dtec is providing entrepreneurs the opportunity to benefit from deferred rent payments for up to three months, and a five percent 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 enjoy the option of paying their rents in up to six installments.
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. 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 check 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, 2020 and granting a five percent 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 can also benefit from a set of incentives. During the exemption period, DSOA is offering new companies a grace period on monthly rent payments until end of May 2020, and a discount of up to 10 percent on the monthly rent.
Existing residential tenants at Dubai Silicon Oasis now have the option of paying their rents monthly and a new rental structure has also been activated. DSOA is to defer all new and existing lease payments for up to two months and provide flexible payment plans for the remainder of the lease duration. The Authority is to waive cheque retrieval fees on bounced checks for first offenders. Residential villa tenants can benefit from a discount of AED5,000, while other residential tenants receive a discount of AED 2,000, if they pay the annual rent as one deposit.