December 30, 2024

Abu Dhabi Film Commission

Abu Dhabi Film Commission: Abu Dhabi Announces Various Improvements to Increase Deferred Discount by 35%++

Through a sliding scale points system and clear qualification criteria, productions have the opportunity to benefit from a total deferred discount of up to 50%.
The guidelines have also been improved: support for additional production formats, increased ceilings for total financial support and improved qualification and payment process.
Abu Dhabi was the first destination in the region to offer deferred rebate and has supported more than 170 major productions since its inception in 2013.

ABU DHABI, United Arab Emirates, 30 December 2024: The Abu Dhabi Film Commission (ADFC), part of the Abu Dhabi Creative Media Authority (CMA), has announced multi-tiered enhancements to its rebate offering for film and television productions. The new guidelines will allow international production companies to benefit from a total deferred rebate of 50%, based on a clear set of criteria and a sliding scale points system.

With an increase in the baseline from 30% to 35%++ announced in Q3, the new rebate will be applied to qualifying productions from 1 January 2025, with new eligible formats, higher financial project caps and an enhanced process designed to strengthen and attract strategic investment into the film and television production sector in Abu Dhabi.

Mohamed Dobay, Acting CEO of the Creative Media Authority, said : “As pioneers of the rebate system in the region, TV and film production continues to be a key pillar in the development of our creative industries and a strategic differentiator for the emirate. We have introduced several levels of rebate changes that will continue to drive global and regional interest in Abu Dhabi and contribute to the wider creative ecosystem. We look forward to welcoming new production partners, while strengthening our existing and previous relationships, and launching the next phase of planned growth for the sector, to achieve our goal of establishing Abu Dhabi as a leading destination for film and television production globally.”

“From a local perspective, the impact of the rebate on our economy is significant, with independent studies showing that for every dirham paid through one of the fastest payment processes in the industry, more than three dirhams are injected back into the economy,” he continued.

Improved points discount system

The enhanced ADFC rebate will provide an additional increase on top of the new 35% base with a maximum potential of 50% total rebate on production and post-production costs in the market, upon meeting new criteria and requiring full and absolute approval from the ADFC.

The increase is based on a points system where productions obtaining between 10 and 14 points benefit from an increase of 2.5%, in addition to the base of 35%, up to an increase of 15% compared to the base for productions obtaining 85 points or more.

Production companies can score points in a variety of ways, including by incorporating UAE national history and culture into their content, conducting all post-production in Abu Dhabi, producing the main unit of a feature film in Abu Dhabi and/or filming an entire TV series in the emirate.

New admissible formats

From 1 January 2025, the rebate will also be available for other production formats, including reality TV, game shows, short films and animations. These additional formats complement the existing formats of feature films, television series and programmes and television commercials that have been eligible for the rebate since its introduction in 2013.

New higher reimbursement ceilings

The rebate initiative will also see an increase in the caps on the total financial assistance that production companies can obtain from the ADFC. Feature films that meet the criteria will, for example, see their Abu Dhabi Qualifying Production Costs (ADQPE) increase from $5 million to $10 million.

Improved Refund Process

The final step in the remittance update is the streamlining of the timelines for the remittance process itself. The validity period of the provisional certificate has been extended from 60 to 90 days, giving production teams an additional 30 days to begin principal photography in Abu Dhabi, with an additional 120 days of discretionary time.

From the moment the final certificate is issued, towards the end of the delivery procedure, producers will receive the funds within 30 working days (compared to 60 previously), which speeds up the already fast process.

Sameer Al Jaberi, Director of the Abu Dhabi Film Commission, added : “The reception to our initial increase in the baseline from 30% to 35%++ in October was overwhelmingly positive and the team has since seen a surge in interest from around the world, which is sure to intensify again with the new details announced today. Coupled with the financial boost to the economy, productions coming to Abu Dhabi also support talent across the board, from young talent who have access to world-class learning and training opportunities to established talent, including freelancers who are regularly employed on sets for these productions. With over a decade of experience hosting major global and regional productions, the ADFC team are well-versed in the nuances of film and television production and have demonstrated over the years that it is easy to do business here in Abu Dhabi.”

Ben Piltz, Production Manager, said: “Having a rebate for studio films is very important and the Abu Dhabi rebate is second to none, offering several benefits not found anywhere else. The increased cap is a huge benefit and being able to increase eligible spend to 50% by promoting Abu Dhabi and its culture or using local talent is something everyone will be looking at.”

Fuelling Abu Dhabi’s already extensive ecosystem, a significantly larger rebate financially benefits over 800 locally based media companies (over 300 of which are production-specific), the 1,000-strong independent talent pool, young people seeking training and internship opportunities, and the new Golden Visa programme.

More than 170 major productions have passed through Abu Dhabi in recent years, including Warner Bros. Pictures, Legendary Pictures, Disney, Netflix, Paramount Pictures, Yes Raj Films, Tips, Clacket, Eagle Films and Universal Pictures. Films shot in Abu Dhabi include Dune, Dune Part 2, F1, Mission: Impossible: Dead Reckoning Part 1 , Mission: Impossible: Fallout , Star Wars: The Force Awakens , 6 Underground and Fast and Furious 7 , as well as Bollywood hits such as Vikram Vedha , Tiger Zinda Hai and Bharat .

SOURCE: Abu Dhabi Film Commission – Website: www.film.gov.ae/
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