Economic Stimulus Plan by UAE Government During COVID-19

Dubai and Abudhabi of the United Arab Emirates announced economic stimulus package to address the effects of the corona virus (COVID-19) outbreak.

DUBAI

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

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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