Dubai: Public services requiring government fees in the UAE will not be increased for a period of three years, it was announced on Wednesday.
The decision not to increase federal fees was reached during a cabinet meeting and it’s intended to attract more foreign investment and promote economic stability.
This development was announced in a message posted on Twitter by His Highness Shaikh Mohammad Bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai.
“We decided not to increase the federal fees during the next three years, to restore the economic and social stability of the state and to support our industrial and commercial sectors and attract more foreign investments,” the ruler stated.
Shortly after the value-added tax (VAT) took effect, the government announced that it was introducing a Dh10 “Innovation Dirham” fee for a wide range of public services.
ترأسنا اجتماعا لمجلس الوزراء بديوان الرئاسة أقررنا خلاله عدم زيادة الرسوم الاتحادية خلال الثلاث سنوات القادمة ترسيخا للاستقرار الاقتصادي والاجتماعي بالدولة ودعما لقطاعاتنا الصناعية والتجارية واستقطابا لمزيد من الاستثمارات الخارجية pic.twitter.com/baAA2xMZSk— HH Sheikh Mohammed (@HHShkMohd) February 28, 2018
Despite the implementation of VAT, however, businesses in the UAE performed well at the start of the year. According to the Emirates NBD Purchasing Managers’ Index (PMI), January’s input costs for companies in the UAE’s private sector rose at their fastest rate since 2012.
“While selling prices also increased in January, the survey suggests that the full rise in input costs was not passed on to consumers,” said Khatja Haque, head of MENA Research at Emirates NBD.
Businesses were also more upbeat in January, with their confidence levels rising at their strongest since June 2015.