Abu Dhabi Airports freezone has reduced business setup costs by over 65 per cent to attract additional investment, it announced on Wednesday.

All licence fees for new companies have ben waived, with the freezone also receiving permission for Tawtheeq registration exemption as well as an exclusion of VAT in designated zones.

The licence fee waiver applies to new company startups, both limited liability companies (LLCs) and branches during 2019 and 2020.

The freezone is also improving its processes to reduce the registration time, a statement said.

Rowan Michael Kelly, SVP of Abu Dhabi Airports freezone, said: “This reduction in setup costs and exemption from Tawtheeq registration were agreed upon following comprehensive benchmarking evaluating the freezone’s services, costs and the business environment.

“We are offering special services that take into account the economic climate and allow new customers to establish themselves in the emirate more easily in order to support business growth and prosperity.”

Bryan Thompson, CEO of Abu Dhabi Airports, added that the “new approach of reducing cost and time” is in line with Abu Dhabi’s efforts to boost its “economic competitiveness”.

“This is being done through a number of initiatives and incentives that aim to attract businesses and institutions to establish themselves in the emirate.”

Earlier this week, Abu Dhabi also reduced tourism-related fees to help the hospitality sector and attract more visitors.

The Department of Culture & Tourism (DCT) said on Tuesday it has reduced tourism fees from 6 to 3.5 per cent, municipal fees from 4 to 2 per cent and municipality hotel room fees per night from Dhs15 ($4) to Dhs10.

Read: Abu Dhabi cuts fees to boost tourism, hospitality sectors