Hundreds of companies based in Dubai Media City, Dubai Internet City and a host of other business parks will see their cost of operation rise next year as the government entity that manages these tax-free clusters is raising its charges for dozens of services.
Tecom Investments, a Dubai Holding company, has told its tenants that it will charge more to issue employment permits, identity cards and visit visas from 2008.
A business consultant said these charges are only "marginal" as most companies are generating good business from the booming local economy.
Companies operating in Tecom's other clusters such as Knowledge Village, Outsource Zone, International Media Production Zone, Dubai Studio City and DuBiotech will also have to bear cost hikes.
Among those affected by the increases are people working in the Tecom business parks,family members of staff and students enrolled at Knowledge Village.
"Accelerated growth in the economy in the past few years has resulted in higher operating costs throughout the UAE, but as a quality-centric organisation we will not allow rising costs to cause a drop in our service levels. However, we cannot maintain the current enhanced service levels without slightly revising our service charges to bring them in line with prevalent prices in the market," Tecom said in a statement to Gulf News.
In some cases, the service charges will rise by 50 per cent.
Tecom said the revised charges, effective from February 3, are "both reasonable and competitive".
Some companies described the service charge hike as "unjustified" because clients are already paying high office rents.
"They are trying to justify this hike on the basis of rising costs in Dubai, but Tecom rents and existing services charges are already high," said Girish Mehta, managing director of Media City-based Adventure Advertising.
Raju Menon, managing partner of Morison Menon Chartered Accountants, said the increased charges are "marginal" and most companies would not mind them. However, the rising costs will make new companies look more favourably at cheaper options like Sharjah and Ras Al Khaimah.
SourceTecom Investments, a Dubai Holding company, has told its tenants that it will charge more to issue employment permits, identity cards and visit visas from 2008.
A business consultant said these charges are only "marginal" as most companies are generating good business from the booming local economy.
Companies operating in Tecom's other clusters such as Knowledge Village, Outsource Zone, International Media Production Zone, Dubai Studio City and DuBiotech will also have to bear cost hikes.
Among those affected by the increases are people working in the Tecom business parks,family members of staff and students enrolled at Knowledge Village.
"Accelerated growth in the economy in the past few years has resulted in higher operating costs throughout the UAE, but as a quality-centric organisation we will not allow rising costs to cause a drop in our service levels. However, we cannot maintain the current enhanced service levels without slightly revising our service charges to bring them in line with prevalent prices in the market," Tecom said in a statement to Gulf News.
In some cases, the service charges will rise by 50 per cent.
Tecom said the revised charges, effective from February 3, are "both reasonable and competitive".
Some companies described the service charge hike as "unjustified" because clients are already paying high office rents.
"They are trying to justify this hike on the basis of rising costs in Dubai, but Tecom rents and existing services charges are already high," said Girish Mehta, managing director of Media City-based Adventure Advertising.
Raju Menon, managing partner of Morison Menon Chartered Accountants, said the increased charges are "marginal" and most companies would not mind them. However, the rising costs will make new companies look more favourably at cheaper options like Sharjah and Ras Al Khaimah.
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