Economic Stimulus Plan by UAE Government During COVID-19

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.

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.