Multiple measures were launched to combat the problems surfacing due to the lockdown.
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The UAE has been proactive in managing the challenges arising from the Covid-19 pandemic. According to a survey conducted by the Federal Competitiveness and Statistics Authority, there have been more than 100 incentives and measures launched by the federal government, local governments, and the Central Bank of the UAE. Measures to deal with the economic setback following the lockdown include:
- Dh256 billion capital and liquidity measures rolled out by the CBUAE. It consists of Dh50 billion in capital buffer relief, Dh50 billion in zero-cost funding support, Dh95 billion in liquidity buffer relief, and a Dh61 billion reduction of cash reserve requirements
- Concessions and stimulus packages worth billions of dirham announced by the UAE Cabinet, governments of various emirates, ministries and free zones
- Extension of residence permits expiring on March 1st, 2020 for a renewable period of three months without any additional fees upon renewal
- The Ministry of Economy has slashed fees across 94 types of services provided to individuals, companies, and the business sector
- Additional banking facilities to various economic sectors, SMEs enterprises, and individuals, as well as exemptions, postponing of dues and other related concessions
Several incentives have been launched in Abu Dhabi:
- Providing individuals and SMEs with immediate support and, reduction of financing costs
- Banking incentives include a moratorium on payments of instalments, interest on loans and credit cards for three months
- Allowing the electronic payment of electricity and water bills, and the opportunity to pay school fees in instalments without interest
The following incentives have been launched for companies:
- Allocation of Dh5 billion to support electricity and water companies
- Dh3 billion towards an SME financing guarantee program
- Dh1 billion for the establishment of the "Market Maker Fund"
- Reduction of rental service fees by 50 percent for SMEs on transactions less than Dh5 million
- Reducing fees and prices by 50 percent for accounts without balance
Some other provisions include:
- Three-month payment freeze on bad debts of citizens
- Forbidding rental evictions and related executive procedures
- Exemption of fees for renewing licenses for commercial activities
The following measures have been introduced in Dubai:
- Incentives worth Dh1.5 billion for three months to support individuals and the businesses
- Delaying the repayment of loans for those without salaries for three months free of interest or fees
- A five percent hike in financing value of residential properties for first-time buyers
- Refund of application fees and fees imposed for the cancellation of travel tickets paid with credit and debit cards
- Refund of cash withdrawal fees at ATMs
- Injection of fresh capital into Emirates Airline
- 10 percent deduction in water and electricity bills for three months
- A cut in insurance premiums by 50 percent
- Postponing the payment of rent in free zones
The incentives in Sharjah include:
- Benefits for the tourism sector such as exempting hotels from municipality fees for three months
- Discounted fees for exhibitions in 2020
- 50 percent discount for shops and commercial centers participating in marketing campaigns
- 50 percent rental reduction for three months for restaurants, currency exchanges, shops, banks, travel agencies, communication stores, and tourism promotion and car rental companies inside airports
The governments of Ajman, Ras Al Khaimah, Umm Al Qaiwain, and Fujairah have also launched swift and effective initiatives including exemption from fees for certain government services and partial exemptions for other fees.
The original article was published in Khaleej Times on April 21, 2020.
