Ajman Free Media City has cancelled articles related to paying labour guarantees, which are based on its service fee regulations.
It will also allow licensed establishments to cancel their labour guarantees, and will make it non-compulsory for new establishments to provide such guarantees.
The city will only require establishments to provide a written pledge to pay its labour requirements, as well as those by judicial authorities, at any given time.
It is also currently adopting a policy that will oblige establishments to provide their workers with low-cost insurance.
Sheikh Abdulaziz bin Humaid Al Nuaimi, Chairman of the board of Directors of Ajman Free Media City, stated that this decision is in line with the country’s directives, following the adoption by the UAE Cabinet of a series of strategic decisions to reinforce the competitiveness of the country’s business environment, including the cancelling of mandatory bank guarantees for recruiting workers and replacing them with low-cost insurance, as well as providing the business sector with bank guarantees worth AED14 billion.
He praised the cabinet’s decisions, as they will reduce the cost of recruiting workers and decrease the burdens on employers.
Al Nuaimi stressed that this decision was taken by the country to provide an attractive environment that will encourage economic growth, improve the UAE’s competitiveness, and attract investments.
He also pointed out that the decision is in line with the country’s rapid developments, and aims to increase the city’s competitiveness and facilitate the work of licensed establishments and those that are yet to be licensed.
Al Nuaimi noted that the city is keen to support small and medium-sized enterprises, through promoting cooperation and strategic partnerships with government authorities and relevant local programmes and institutions.