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Dubai waives bank guarantee requirement for tourism firms, to issue Dh250 million in refunds

Ankit Sharma

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<p>Dubai: Companies in the tourism industry will soon be able to get back the bank guarantees they had earlier set aside when they started doing their business in Dubai.</p> <p>Entrepreneurs who are planning to start a business will also no longer need to raise a huge amount as a guarantee before securing a trade license in the emirate.</p> <p>Dubai&rsquo;s Department of Tourism and Commerce Marketing (Dubai Tourism) confirmed on Tuesday that it has initiated efforts to release Dh250 million in bank guarantees that have been furnished by tourism-related service providers, following a decision to scrap the requirement to start a travel and tour business in the emirate.</p> <p>The move will not only lower the cost of doing business, it will&nbsp;boost liquidity of local businesses and enable&nbsp;them to reinvest some money into the economy. It will benefit over 2,000 travel and tour agencies operating in Dubai.</p> <p>Previously, tourism companies including inbound and outbound tour operators were required to put up a bank guarantee ranging from Dh100,000 to Dh600,000, depending on the type of business activity, to Dubai Tourism, as a precondition for the Department of Economic Development (DED) to grant a trade license.</p> <p>&nbsp;</p> <p>Source:-<a href="https://gulfnews.com/business/tourism/dubai-waives-bank-guarantee-requirement-for-tourism-firms-to-issue-dh250-million-in-refunds-1.1546943092341" target="_blank">https://gulfnews.com/business/tourism/dubai-waives-bank-guarantee-requirement-for-tourism-firms-to-issue-dh250-million-in-refunds-1.1546943092341</a>‚Äč</p>