Fee waivers and licensing support are aimed at reducing pressure on businesses and sustaining growth.
Dubai South has announced a new set of incentives for companies operating in its free zone as part of a broader effort to sustain business activity and ease cost pressures amid the ongoing crisis.
The measures include support for new company formation, assistance with licence renewals, and exemptions from late renewal fines.
These measures come as Dubai authorities work to strengthen the competitiveness of the emirate’s free-zone ecosystem.
The initiative aligns with efforts led by the Dubai Free Zones Council, which has been working to strengthen the resilience of free zones as businesses adapt to changing economic conditions, including weaker global demand and ongoing geopolitical uncertainty.
“Dubai South remains committed to supporting our business community by introducing measures that facilitate growth and continuity,” said Nabil Al Kindi, Group CEO of Dubai South.
“This latest initiative builds on our ongoing efforts to provide support across our ecosystem, including the recently announced measures for SMEs at the Business Park,” he added, referring to earlier targeted support for small and medium-sized enterprises.
The move also reflects a broader trend across the UAE, where free zones are adjusting fee structures, offering flexible payment plans, and introducing targeted incentives to retain tenants and boost occupancy.
For businesses—especially SMEs and new entrants—administrative costs such as licensing fees and penalties can quickly accumulate. Waiving late renewal fines and streamlining formation processes may therefore offer immediate, albeit incremental, relief.
Dubai South, which includes a mix of logistics, aviation, commercial and residential developments, has positioned itself as a long-term growth hub. It is located near Al Maktoum International Airport and Expo City Dubai.
Al Kindi said the latest measures align with the UAE’s broader economic direction and fall under the “Dubai South in Motion” initiative, aimed at sustaining business momentum and strengthening investor confidence.
Free zones step up for businesses
However, the announcement comes at a time of rising competition among regional free zones, with operators increasingly introducing incentives to differentiate themselves and attract a larger share of new business setups.
Recently, Dubai South Properties awarded a Dh2 billion contract to develop multiple phases of the “Hayat” project, a luxury master-planned community spanning 10 million square feet.
Construction is set to begin in the second quarter of 2026, with the initial phases expected to be completed by 2028.
Dubai South has also introduced a new support package for small and medium-sized enterprises operating within its Business Park.
The initiative follows the Dubai government’s announcement of a Dh1 billion economic incentives package to support businesses and individuals, with measures effective from April 1 for a period of three to six months.
