Economic Stimulus Plan by UAE – Dubai and Abudhabi of the United Arab Emirates announced economic stimulus package to address the effects of the corona virus (COVID-19) outbreak.
The following are the measures announced by Dubai:
- A refund of 20% of the customs fee imposed on imported products sold in Dubai.
- Cancellation of bank guarantee required to clear goods.
- A 90% reduction of fees imposed on submission of customs documents.
- A “freeze” on the 2.5% market fees levied on all facilities operating in Dubai.
- Reduction of “municipality fees” imposed on sales at hotels from 7% to 3.5%.
- Exemption to traditional wooden commercial vessels registered in the country from mooring service fees for arrival and departure, and direct and indirect loading fees at Dubai and Hamriyah Ports.
- Cancellation of 25 % down payment required for requesting installment-based payment of government fees for obtaining and renewing licenses.
- Permission to renew commercial licenses without mandatory renewal of lease contracts.
- Exemption from fees charged to companies for postponement and cancellation of tourism and sports events scheduled for 2020.
- A freeze on “fees” charged for the sale of tickets, issuance of permits and other government fees related to entertainment and business events.
- A reduction in water and electricity bills by 10% and a reduction in deposits paid for water and electricity connections by 10%.
- Freeze on the fees for classification/rating of hotels.
- Removal of bank/cash guarantee requirements to clear goods for clearing companies (i.e. customs brokers) and refund of the existing bank/cash guarantees for these companies.
Abudhabi has also announced initiatives focused on supporting small and medium-size enterprises (SMEs) and easing the availability of loans to local companies and include:
- Suspension of real estate registration fees until the end of 2020.
- Reduction of industrial land leasing fees by 25% on new contracts.
- Suspension of tourism and municipality fees for the tourism and entertainment sectors until the end of 2020.
- Exemption for commercial vehicles from annual registration fees until the end of 2020.
- Exemption for all vehicles from road toll tariffs until the end of 2020.
- Suspension of bid bonds and exempting startups from performance guarantees for projects up to AED 50 million.
- Waiver of certain commercial and industrial penalties.
- Allocation of AED 5 billion to subsidize water and electricity for citizens, and commercial and industrial activities.
- Subsidizing electricity connection fees for startups until the end of this year.
- Exempting all commercial and industrial activities from Tawtheeq fees this year.
- Allocation of AED 3 billion to the SME credit guarantee scheme managed by the Abu Dhabi Investment Office to stimulate financing by local banks and enable SMEs to navigate the current market environment.
- Allocation of AED 1 billion to establish a market maker fund, to enhance liquidity and sustain balance between supply and demand for stocks.
- Settlement of all approved government payables and invoices within 15 working days.
- Rebate of up to 20 % on rental values for restaurants, tourism and entertainment sectors.
- Establishing a new committee to review lending options to support local companies.
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