Abu Dhabi has launched initiatives under its economic stimulus package that will enable the emirate to adapt swiftly to both current and future challenges, including the country’s ongoing steps to combat the spread of coronavirus disease or COVID-19, as well as its impact in the economy and lives of the residents.
Directed by Sheikh Mohamed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces, the Abu Dhabi Executive Council has announced these initiatives amid the COVID-19 spread, in its sincere and unyielding efforts to support businesses and the community.
The initiatives include the following:
Allocating Dh5bn to subsidize water and electricity for citizens, and commercial and industrial activities
The government will provide subsidized billing for all residents in the coming months, in its aim to ease the burdens of its people on paying their monthly bills.
Subsidizing electricity connection fees for startups until the end of this year.
The UAE government pushes for the rise of many startup businesses to boost the economy and job creation, which is why the subsidy for electricity connection fees comes as an inviting move for neophyte business owners to set up in the country.
Exempting all commercial and industrial activities from Tawtheeq fees this year.
Commercial and industrial activities set to take place this year will soon be rid of another bill as they will be exempt from having to pay Tawtheeq (rental) fees.
Allocating Dh3bn to the SME credit guarantee scheme managed by Abu Dhabi Investment Office to stimulate financing by local banks and enhance SME’s ability to navigate the current market environment.
Another plus factor to providing a better breathing space for small and medium enterprises (SMEs) in the country is the provision of the SME credit guarantee scheme of an addition Dh3B. This is a huge help for business owners in their aim for continuous developments and progress.
Allocating Dh1bn to establish a market maker fund, to enhance liquidity and sustain balance between supply and demand for stocks.
Residents and citizens in the UAE who delve in trade and stocks will be assisted indirectly by the UAE government as it establishes the market maker fund worth Dh1B
Settling all approved government payables & invoices within 15 working days.
The UAE government assures everyone that it will settle all payments to help businesses and individuals settle their respective dues.
Suspending bid bonds and exempting startups of performance guarantees for projects up to Dh50 million.
Another move to support startups in the country amid the COVID-19 pandemic is to suspend bid bonds and exempt startups of performance guarantees that will help the new business owners to channel their resources in other areas, to help their businesses grow.
Reducing industrial land leasing fees by 25% on new contracts.
New business owners can enjoy a flat 25% reduction on their industrial land leasing fees, giving them more breathing space on their investments as they launch their business
Suspending real estate registrations fees for this year.
The government provides another leeway for real estate owners and developers as it suspends registration fees for this year.
Waiving current commercial and industrial penalties.
Another move by the UAE government for commercial and industrial entities is doing away with all penalties accumulated by their respective companies, to help ease their financial burdens.
Exempting commercial vehicles from annual registration fees to the end of 2020.
In addition, companies who have registered commercial vehicles need not pay their annual registration fees for 2020, as the government aims to financially assist commercial vehicle owners.
Exempting all vehicles from road toll tariffs till the end of 2020.
All roads lead to Abu Dhabi as the government has decided to exempt all vehicles from having to pay toll fees until the end of the year.
Suspending tourism and municipality fees for tourism & entertainment sectors for this year.
Furthermore, companies and individuals working at the tourism and entertainment sectors no longer need to pay both tourism and municipality fees as the government will pay for these. Thus giving business owners and individuals in these sectors more leeway for other payments that they need to finance.
Offering up to 20% rebate on rental values for the restaurants and tourism and entertainment sectors.
Business owners in the fields of tourism and entertainment may soon enjoy rebates of 20% on their rents. This is a welcome development for many establishments considering several restrictions currently in place in the country’s efforts to curb the spread of COVID-19
Establishing a new committee headed by the Department of Finance, with members from the Department of Economic Development and local banks to review lending options to support local companies.
The government aims to streamline all processes during these times, particularly for lending in their support for local companies – which is why they have launched a new committee that will oversee and review lending options for these businesses.
Directed by Mohamed bin Zayed, Abu Dhabi Executive Council announces 16 new initiatives to support businesses and the community. The fast-tracked #Ghadan21 initiatives to be implemented immediately will enable Abu Dhabi to adapt swiftly to both current and future challenges pic.twitter.com/UYNrdDHxBl
— Abu Dhabi Media Office (@admediaoffice) March 16, 2020
